Microchip Technology Incorporated

XTRA:MCP Stock Report

Market Cap: €30.0b

Microchip Technology Valuation

Is MCP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

€55.82
Fair Value
0.8% undervalued intrinsic discount
25
Number of Analysts

Below Fair Value: MCP (€55.37) is trading below our estimate of fair value (€55.82)

Significantly Below Fair Value: MCP is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCP?

Key metric: As MCP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MCP. This is calculated by dividing MCP's market cap by their current revenue.
What is MCP's PS Ratio?
PS Ratio8.3x
SalesUS$4.24b
Market CapUS$34.86b

Price to Sales Ratio vs Peers

How does MCP's PS Ratio compare to its peers?

The above table shows the PS ratio for MCP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.8x
IFX Infineon Technologies
2.9x8.55%€42.2b
ELG Elmos Semiconductor
2.4x8.30%€1.4b
SIS First Sensor
5.7xn/a€593.4m
ALAB Astera Labs
44.3x26.80%US$26.9b
MCP Microchip Technology
8.3x13.59%€34.9b

Price-To-Sales vs Peers: MCP is good value based on its Price-To-Sales Ratio (8.3x) compared to the peer average (13.8x).

Price to Sales Ratio vs Industry

How does MCP's PS Ratio compare vs other companies in the DE Semiconductor Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
M5Z Manz
0.06x1.94%US$3.39m
D0Q Sondrel (Holdings)
0.2xn/aUS$2.02m
M5Z Manz
0.006xn/aUS$1.55m
No more companies available in this PS range
MCP 8.3xIndustry Avg. 2.3xNo. of Companies3PS012345+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MCP is expensive based on its Price-To-Sales Ratio (8.3x) compared to the European Semiconductor industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is MCP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate MCP's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MCP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€55.37
€65.65
+18.56%
12.16%€77.54€51.69n/a25
Oct ’26€54.27
€64.74
+19.29%
12.58%€76.66€51.11n/a25
Sep ’26n/a
€65.63
0%
11.86%€76.80€51.20n/a24
Aug ’26n/a
€64.03
0%
13.38%€76.63€48.53n/a24
Jul ’26n/a
€57.47
0%
11.64%€72.10€42.41n/a24
Jun ’26n/a
€56.26
0%
10.42%€66.06€44.04n/a23
May ’26n/a
€51.69
0%
16.96%€61.52€30.76n/a23
Apr ’26n/a
€60.64
0%
10.28%€73.94€48.99n/a23
Mar ’26n/a
€61.26
0%
11.21%€76.58€47.87n/a23
Feb ’26n/a
€74.95
0%
14.18%€91.07€53.68n/a24
Jan ’26n/a
€79.73
0%
11.96%€91.38€57.71n/a24
Dec ’25n/a
€80.47
0%
10.40%€92.81€66.29n/a25
Nov ’25n/a
€84.50
0%
10.72%€97.07€64.72n/a25
Oct ’25n/a
€83.52
0%
10.62%€94.49€67.49€54.2725
Sep ’25n/a
€84.70
0%
10.09%€95.26€68.04n/a25
Aug ’25n/a
€92.69
0%
9.70%€105.98€70.04n/a25
Jul ’25n/a
€93.04
0%
9.30%€107.35€70.95n/a26
Jun ’25n/a
€91.70
0%
9.15%€106.19€70.18n/a25
May ’25n/a
€86.97
0%
9.21%€99.14€71.08n/a26
Apr ’25n/a
€85.11
0%
9.39%€97.35€69.53n/a26
Mar ’25n/a
€85.11
0%
9.39%€97.35€69.53n/a26
Feb ’25n/a
€85.31
0%
9.73%€96.60€69.00n/a24
Jan ’25n/a
€82.02
0%
10.88%€100.90€66.96n/a25
Dec ’24n/a
€80.95
0%
10.35%€100.25€66.53n/a25
Nov ’24n/a
€89.32
0%
10.16%€103.61€71.58n/a25
Oct ’24n/a
€91.06
0%
9.30%€104.05€71.89n/a25
€64.7
Fair Value
14.4% undervalued intrinsic discount
25
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/15 02:21
End of Day Share Price 2025/10/15 00:00
Earnings2025/06/30
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Microchip Technology Incorporated is covered by 45 analysts. 25 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Timothy LukeBarclays
Ambrish SrivastavaBMO Capital Markets Equity Research