Microchip Technology Valuation
Is MCHP * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of MCHP * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MCHP * (MX$1392) is trading below our estimate of fair value (MX$1831.98)
Significantly Below Fair Value: MCHP * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MCHP *?
Key metric: As MCHP * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is MCHP *'s PE Ratio? | |
|---|---|
| PE Ratio | 44.8x |
| Earnings | US$781.60m |
| Market Cap | US$35.04b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 7.5x |
| Enterprise Value/EBITDA | 21.1x |
| PEG Ratio | 1.4x |
Price to Earnings Ratio vs Peers
How does MCHP *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 29.7x | ||
ON ON Semiconductor | 16.2x | 14.9% | US$28.4b |
GFS GlobalFoundries | 31.6x | 22.5% | US$23.4b |
IFX Infineon Technologies | 21.6x | 17.0% | €37.8b |
981 Semiconductor Manufacturing International | 49.6x | 25.0% | HK$365.1b |
MCHP * Microchip Technology | 44.8x | 31.0% | Mex$35.0b |
Price-To-Earnings vs Peers: MCHP * is expensive based on its Price-To-Earnings Ratio (44.8x) compared to the peer average (29.5x).
Price to Earnings Ratio vs Industry
How does MCHP *'s PE Ratio compare vs other companies in the Global Semiconductor Industry?
| 17 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 17 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: MCHP * is expensive based on its Price-To-Earnings Ratio (44.8x) compared to the Global Semiconductor industry average (30.9x).
Price to Earnings Ratio vs Fair Ratio
What is MCHP *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 44.8x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MCHP *'s Price-To-Earnings 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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | Mex$1,727.47 0% | 10.3% | Mex$1,983.50 | Mex$1,416.79 | n/a | 24 |
| Nov ’25 | Mex$1,583.00 | Mex$1,843.67 +16.5% | 10.3% | Mex$2,103.12 | Mex$1,402.08 | n/a | 24 |
| Oct ’25 | Mex$1,600.00 | Mex$1,815.36 +13.5% | 10.1% | Mex$2,038.53 | Mex$1,456.10 | n/a | 24 |
| Sep ’25 | Mex$1,637.50 | Mex$1,752.97 +7.1% | 9.5% | Mex$1,956.27 | Mex$1,397.33 | n/a | 24 |
| Aug ’25 | n/a | Mex$1,846.60 0% | 8.4% | Mex$2,090.13 | Mex$1,599.40 | n/a | 24 |
| Jul ’25 | n/a | Mex$1,840.84 0% | 8.1% | Mex$2,103.98 | Mex$1,610.00 | n/a | 25 |
| Jun ’25 | Mex$1,610.00 | Mex$1,704.32 +5.9% | 7.9% | Mex$1,954.55 | Mex$1,495.66 | n/a | 24 |
| May ’25 | Mex$1,574.38 | Mex$1,594.06 +1.2% | 8.6% | Mex$1,803.89 | Mex$1,310.37 | n/a | 25 |
| Apr ’25 | n/a | Mex$1,579.18 0% | 8.8% | Mex$1,793.94 | Mex$1,281.38 | n/a | 25 |
| Mar ’25 | n/a | Mex$1,579.18 0% | 8.8% | Mex$1,793.94 | Mex$1,281.38 | n/a | 25 |
| Feb ’25 | n/a | Mex$1,596.84 0% | 9.1% | Mex$1,794.08 | Mex$1,281.49 | n/a | 23 |
| Jan ’25 | n/a | Mex$1,548.45 0% | 10.6% | Mex$1,892.99 | Mex$1,256.26 | n/a | 24 |
| Dec ’24 | n/a | Mex$1,547.04 0% | 10.1% | Mex$1,904.50 | Mex$1,263.89 | n/a | 24 |
| Nov ’24 | n/a | Mex$1,726.14 0% | 9.4% | Mex$1,985.89 | Mex$1,426.23 | Mex$1,583.00 | 24 |
| Oct ’24 | n/a | Mex$1,692.77 0% | 8.3% | Mex$1,917.41 | Mex$1,406.68 | Mex$1,600.00 | 24 |
| Sep ’24 | n/a | Mex$1,660.22 0% | 7.8% | Mex$1,874.43 | Mex$1,448.43 | Mex$1,637.50 | 24 |
| Aug ’24 | n/a | Mex$1,653.72 0% | 10.2% | Mex$2,093.05 | Mex$1,339.55 | n/a | 24 |
| Jul ’24 | Mex$1,528.88 | Mex$1,641.25 +7.3% | 12.1% | Mex$2,159.24 | Mex$1,312.82 | n/a | 23 |
| Jun ’24 | n/a | Mex$1,691.35 0% | 12.0% | Mex$2,222.41 | Mex$1,351.23 | Mex$1,610.00 | 23 |
| May ’24 | n/a | Mex$1,757.82 0% | 10.4% | Mex$2,262.19 | Mex$1,429.70 | Mex$1,574.38 | 23 |
| Apr ’24 | n/a | Mex$1,751.28 0% | 10.1% | Mex$2,248.11 | Mex$1,420.81 | n/a | 24 |
| Mar ’24 | Mex$1,467.00 | Mex$1,785.88 +21.7% | 10.1% | Mex$2,294.49 | Mex$1,450.12 | n/a | 24 |
| Feb ’24 | Mex$1,491.44 | Mex$1,571.09 +5.3% | 12.3% | Mex$2,344.91 | Mex$1,313.15 | n/a | 24 |
| Jan ’24 | n/a | Mex$1,577.22 0% | 14.2% | Mex$2,404.30 | Mex$1,192.53 | n/a | 24 |
| Dec ’23 | n/a | Mex$1,577.22 0% | 14.2% | Mex$2,404.30 | Mex$1,192.53 | n/a | 24 |
| Nov ’23 | n/a | Mex$1,653.57 0% | 17.3% | Mex$2,483.43 | Mex$1,231.78 | n/a | 23 |
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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