Microchip Technology Incorporated

NasdaqGS:MCHP Stock Report

Market Cap: US$39.8b

Microchip Technology Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: MCHP ($73.27) is trading above our estimate of future cash flow value ($66.78)

Significantly Below Future Cash Flow Value: MCHP is trading above our estimate of future cash flow value.

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.

The above table shows the Price to Earnings ratio for MCHP. This is calculated by dividing MCHP's market cap by their current earnings.
What is MCHP's PE Ratio?
PE Ratio108.4x
EarningsUS$367.20m
Market CapUS$39.79b

Price to Earnings Ratio vs Peers

How does MCHP's PE Ratio compare to its peers?

The above table shows the PE ratio for MCHP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average60.4x
ON ON Semiconductor
43.2x32.96%US$26.6b
ALAB Astera Labs
142.4x33.16%US$50.9b
NXPI NXP Semiconductors
19.3x12.14%US$57.5b
GFS GLOBALFOUNDRIES
36.6x25.88%US$26.2b
MCHP Microchip Technology
108.4x33.01%US$39.8b

Price-To-Earnings vs Peers: MCHP is expensive based on its Price-To-Earnings Ratio (108.4x) compared to the peer average (60.4x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does MCHP's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
2.4x37.34%US$189.03m
MTLK Metalink
3xn/aUS$258.03k
No more companies available in this PE range
MCHP 108.4xIndustry Avg. 47.0xNo. of Companies7PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCHP is expensive based on its Price-To-Earnings Ratio (108.4x) compared to the US Semiconductor industry average (47x).

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.

MCHP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio108.4x
Fair PE Ratio35.6x

Price-To-Earnings vs Fair Ratio: MCHP is expensive based on its Price-To-Earnings Ratio (108.4x) compared to the estimated Fair Price-To-Earnings Ratio (35.6x).

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 MCHP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$73.27
US$108.64
+48.27%
12.82%US$135.00US$80.00n/a25
Sep ’27US$71.41
US$108.64
+52.14%
12.82%US$135.00US$80.00n/a25
Aug ’27US$74.29
US$113.08
+52.22%
12.27%US$135.00US$80.00n/a24
Jul ’27US$88.69
US$112.96
+27.36%
12.94%US$135.00US$75.00n/a24
Jun ’27US$91.52
US$113.24
+23.73%
12.71%US$135.00US$75.00n/a25
May ’27US$93.95
US$87.92
-6.42%
13.96%US$115.00US$69.00n/a24
Apr ’27US$65.38
US$86.67
+32.56%
12.90%US$115.00US$69.00n/a24
Mar ’27US$74.64
US$86.60
+16.02%
12.66%US$115.00US$69.00n/a25
Feb ’27US$75.92
US$83.72
+10.27%
12.28%US$100.00US$60.00n/a25
Jan ’27US$63.72
US$75.24
+18.08%
11.70%US$88.00US$56.00n/a25
Dec ’26US$53.43
US$73.64
+37.83%
12.33%US$88.00US$56.00n/a25
Nov ’26US$62.42
US$76.20
+22.08%
12.16%US$90.00US$60.00n/a25
Oct ’26US$64.11
US$76.00
+18.55%
12.58%US$90.00US$60.00n/a25
Sep ’26US$65.00
US$76.92
+18.33%
11.86%US$90.00US$60.00US$71.4124
Aug ’26US$66.36
US$75.21
+13.33%
13.38%US$90.00US$57.00US$74.2924
Jul ’26US$71.68
US$67.76
-5.47%
11.64%US$85.00US$50.00US$88.6924
Jun ’26US$58.04
US$63.88
+10.06%
10.42%US$75.00US$50.00US$91.5223
May ’26US$45.98
US$58.82
+27.93%
16.96%US$70.00US$35.00US$93.9523
Apr ’26US$48.50
US$65.61
+35.27%
10.28%US$80.00US$53.00US$65.3823
Mar ’26US$58.86
US$64.00
+8.73%
11.21%US$80.00US$50.00US$74.6423
Feb ’26US$54.30
US$78.18
+43.98%
14.18%US$95.00US$56.00US$75.9224
Jan ’26US$57.35
US$82.89
+44.54%
11.96%US$95.00US$60.00US$63.7224
Dec ’25US$68.17
US$84.98
+24.65%
10.40%US$98.00US$70.00US$53.4325
Nov ’25US$74.81
US$91.40
+22.18%
10.72%US$105.00US$70.00US$62.4225
Oct ’25US$77.49
US$92.80
+19.76%
10.62%US$105.00US$75.00US$64.1125
Sep ’25US$82.16
US$93.36
+13.64%
10.09%US$105.00US$75.00US$65.0025
US$108.64
Fair Value
32.6% undervalued intrinsic discount
25
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/19 03:37
End of Day Share Price 2026/09/18 00:00
Earnings2026/06/30
Annual Earnings2026/03/31

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 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 41 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
Timothy LukeBarclays
Thomas O'MalleyBarclays