Microchip Technology Incorporated

BIT:1MCHP Stock Report

Market Cap: €32.2b

Microchip Technology Valuation

Is 1MCHP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 1MCHP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€56.52
Fair Value
3.6% overvalued intrinsic discount
25
Number of Analysts

Below Fair Value: 1MCHP (€58.54) is trading above our estimate of fair value (€56.52)

Significantly Below Fair Value: 1MCHP is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1MCHP?

Key metric: As 1MCHP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1MCHP. This is calculated by dividing 1MCHP's market cap by their current revenue.
What is 1MCHP's PS Ratio?
PS Ratio8.3x
SalesUS$4.40b
Market CapUS$37.91b

Price to Sales Ratio vs Peers

How does 1MCHP's PS Ratio compare to its peers?

The above table shows the PS ratio for 1MCHP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.7x
TPRO Technoprobe
8.6x13.46%€4.8b
STMPA STMicroelectronics
2x9.23%€20.1b
NXPI NXP Semiconductors
4.7x7.50%US$56.8b
ON ON Semiconductor
3.5x3.95%US$24.9b
1MCHP Microchip Technology
8.3x11.55%€37.9b

Price-To-Sales vs Peers: 1MCHP is expensive based on its Price-To-Sales Ratio (8.3x) compared to the peer average (4.7x).

Price to Sales Ratio vs Industry

How does 1MCHP's PS Ratio compare vs other companies in the European Semiconductor Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
1MCHP 8.3xIndustry Avg. 2.5xNo. of Companies11PS01.63.24.86.48+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1MCHP 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 1MCHP'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.

1MCHP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.3x
Fair PS Ratio8.5x

Price-To-Sales vs Fair Ratio: 1MCHP is good value based on its Price-To-Sales Ratio (8.3x) compared to the estimated Fair Price-To-Sales Ratio (8.5x).

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 1MCHP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€58.08
€63.64
+9.57%
13.38%€76.52€48.46n/a25
Jul ’26€60.35
€57.47
-4.77%
11.64%€72.10€42.41n/a24
Jun ’26€51.32
€56.26
+9.63%
10.42%€66.06€44.04n/a23
May ’26€40.11
€51.69
+28.90%
16.96%€61.52€30.76n/a23
Apr ’26€44.76
€60.64
+35.49%
10.28%€73.94€48.99n/a23
Mar ’26€55.95
€61.26
+9.50%
11.21%€76.58€47.87n/a23
Feb ’26€53.75
€74.95
+39.44%
14.18%€91.07€53.68n/a24
Jan ’26€55.29
€79.73
+44.21%
11.96%€91.38€57.71n/a24
Dec ’25€65.62
€80.47
+22.63%
10.40%€92.81€66.29n/a25
Nov ’25€69.04
€84.50
+22.40%
10.72%€97.07€64.72n/a25
Oct ’25€70.24
€83.52
+18.90%
10.62%€94.49€67.49n/a25
Sep ’25€73.88
€84.70
+14.65%
10.09%€95.26€68.04n/a25
Aug ’25€80.22
€92.69
+15.55%
9.70%€105.98€70.04n/a25
Jul ’25€85.12
€93.04
+9.31%
9.30%€107.35€70.95€60.3526
Jun ’25€87.23
€91.70
+5.12%
9.15%€106.19€70.18€51.3225
May ’25€87.07
€86.97
-0.11%
9.21%€99.14€71.08€40.1126
Apr ’25€82.90
€85.11
+2.66%
9.39%€97.35€69.53€44.7626
Mar ’25€79.64
€85.11
+6.86%
9.39%€97.35€69.53€55.9526
Feb ’25€78.00
€85.31
+9.37%
9.73%€96.60€69.00€53.7524
Jan ’25€81.98
€82.02
+0.055%
10.88%€100.90€66.96€55.2925
Dec ’24€77.32
€80.95
+4.70%
10.35%€100.25€66.53€65.6225
Nov ’24€66.28
€89.32
+34.76%
10.16%€103.61€71.58€69.0425
Oct ’24€74.24
€91.06
+22.66%
9.30%€104.05€71.89€70.2425
Sep ’24€76.20
€87.75
+15.16%
8.84%€99.96€69.06€73.8825
Aug ’24€84.66
€88.99
+5.11%
11.05%€113.68€69.11€80.2225
Jul ’24€81.86
€87.55
+6.95%
12.59%€116.15€70.62€85.1224
AnalystConsensusTarget
Consensus Narrative from 25 Analysts
€64.62
Fair Value
9.4% undervalued intrinsic discount
25
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/24 20:23
End of Day Share Price 2025/07/24 00:00
Earnings2025/03/31
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 55 analysts. 24 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
Ishan MajumdarBaptista Research
Timothy LukeBarclays