Monolithic Power Systems, Inc.

NasdaqGS:MPWR Stock Report

Market Cap: US$28.6b

Monolithic Power Systems Valuation

Is MPWR 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-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 MPWR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MPWR ($560.06) is trading above our estimate of fair value ($350.03)

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

Key Valuation Metric

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

Key metric: As MPWR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MPWR. This is calculated by dividing MPWR's market cap by their current earnings.
What is MPWR's PE Ratio?
PE Ratio62.9x
EarningsUS$434.24m
Market CapUS$28.58b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MPWR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27x
ON ON Semiconductor
16.3x14.9%US$28.4b
FSLR First Solar
15.9x28.2%US$20.1b
GFS GlobalFoundries
31x22.5%US$23.4b
MCHP Microchip Technology
44.7x31.0%US$34.8b
MPWR Monolithic Power Systems
62.9x22.1%US$28.6b

Price-To-Earnings vs Peers: MPWR is expensive based on its Price-To-Earnings Ratio (62.9x) compared to the peer average (27x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.5xn/aUS$148.87m
SQNS Sequans Communications
1.6x-156.5%US$67.23m
No more companies available in this PE range
MPWR 62.9xIndustry Avg. 30.1xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MPWR is expensive based on its Price-To-Earnings Ratio (62.9x) compared to the US Semiconductor industry average (30.1x).

Price to Earnings Ratio vs Fair Ratio

What is MPWR'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.

MPWR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.9x
Fair PE Ratio33.9x

Price-To-Earnings vs Fair Ratio: MPWR is expensive based on its Price-To-Earnings Ratio (62.9x) compared to the estimated Fair Price-To-Earnings Ratio (33.9x).

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 MPWR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$560.06
US$875.10
+56.3%
14.0%US$1,100.00US$660.00n/a12
Nov ’25US$759.37
US$929.70
+22.4%
10.8%US$1,100.00US$700.00n/a11
Oct ’25US$891.81
US$955.33
+7.1%
11.7%US$1,100.00US$700.00n/a11
Sep ’25US$934.68
US$939.33
+0.5%
10.9%US$1,100.00US$700.00n/a11
Aug ’25US$784.95
US$839.22
+6.9%
13.0%US$1,000.00US$600.00n/a11
Jul ’25US$819.40
US$788.03
-3.8%
8.9%US$900.00US$600.00n/a12
Jun ’25US$735.63
US$768.03
+4.4%
8.1%US$850.00US$600.00n/a12
May ’25US$652.59
US$756.18
+15.9%
10.1%US$850.00US$540.00n/a11
Apr ’25US$668.48
US$756.42
+13.2%
9.5%US$830.00US$540.00n/a12
Mar ’25US$743.75
US$737.08
-0.9%
12.1%US$830.00US$540.00n/a12
Feb ’25US$614.13
US$624.42
+1.7%
11.7%US$750.00US$500.00n/a12
Jan ’25US$630.78
US$582.00
-7.7%
11.7%US$750.00US$483.00n/a12
Dec ’24US$559.61
US$552.00
-1.4%
7.1%US$600.00US$483.00n/a12
Nov ’24US$456.56
US$544.56
+19.3%
7.2%US$600.00US$483.00US$759.3712
Oct ’24US$462.00
US$579.73
+25.5%
3.9%US$625.00US$535.00US$891.8112
Sep ’24US$524.92
US$579.73
+10.4%
3.9%US$625.00US$535.00US$934.6812
Aug ’24US$550.29
US$581.67
+5.7%
3.9%US$625.00US$535.00US$784.9512
Jul ’24US$540.23
US$521.55
-3.5%
7.6%US$625.00US$475.00US$819.4011
Jun ’24US$499.29
US$521.55
+4.5%
7.6%US$625.00US$475.00US$735.6311
May ’24US$471.74
US$551.82
+17.0%
6.1%US$620.00US$505.00US$652.5911
Apr ’24US$500.54
US$553.33
+10.5%
6.1%US$620.00US$505.00US$668.4812
Mar ’24US$486.53
US$553.33
+13.7%
6.1%US$620.00US$505.00US$743.7512
Feb ’24US$457.77
US$477.08
+4.2%
12.9%US$620.00US$400.00US$614.1312
Jan ’24US$353.61
US$463.25
+31.0%
13.1%US$620.00US$400.00US$630.7812
Dec ’23US$382.07
US$460.33
+20.5%
13.7%US$620.00US$400.00US$559.6112
Nov ’23US$348.88
US$461.40
+32.3%
14.8%US$620.00US$400.00US$456.5610

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

NXP Semiconductors

US$55.9b

Offers various semiconductor products.

NXPI

US$220.34

7D

-1.2%

1Y

10.4%

Peraso

US$2.3m

A fabless semiconductor company, develops, markets, and sells semiconductor devices and antenna modules in the United States, Hong Kong, Taiwan, and internationally.

PRSO

US$0.85

7D

-0.7%

1Y

-89.2%

First Solar

US$20.1b

A solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally.

FSLR

US$184.84

7D

1.5%

1Y

15.7%