Micron Technology, Inc.

NasdaqGS:MU Stock Report

Market Cap: US$108.4b

Micron Technology Valuation

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

Below Fair Value: MU ($98.37) is trading below our estimate of fair value ($148.11)

Significantly Below Fair Value: MU is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MU. This is calculated by dividing MU's market cap by their current earnings.
What is MU's PE Ratio?
PE Ratio140.2x
EarningsUS$778.00m
Market CapUS$108.36b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.4x
ADI Analog Devices
63.3x25.7%US$104.5b
TXN Texas Instruments
36.6x15.4%US$183.4b
QCOM QUALCOMM
17x7.3%US$183.0b
NXPI NXP Semiconductors
20.6x9.7%US$55.9b
MU Micron Technology
140.2x31.5%US$108.4b

Price-To-Earnings vs Peers: MU is expensive based on its Price-To-Earnings Ratio (140.2x) compared to the peer average (34.4x).

Price to Earnings Ratio vs Industry

How does MU'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
MU 140.2xIndustry Avg. 30.3xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MU is expensive based on its Price-To-Earnings Ratio (140.2x) compared to the US Semiconductor industry average (30.3x).

Price to Earnings Ratio vs Fair Ratio

What is MU'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.

MU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio140.2x
Fair PE Ratio44.3x

Price-To-Earnings vs Fair Ratio: MU is expensive based on its Price-To-Earnings Ratio (140.2x) compared to the estimated Fair Price-To-Earnings Ratio (44.3x).

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 MU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$98.37
US$145.92
+48.3%
20.1%US$250.00US$70.00n/a33
Nov ’25US$99.73
US$146.07
+46.5%
20.1%US$250.00US$70.00n/a33
Oct ’25US$100.31
US$146.10
+45.6%
20.3%US$250.00US$70.00n/a32
Sep ’25US$96.24
US$160.26
+66.5%
13.6%US$225.00US$110.00n/a31
Aug ’25US$101.51
US$163.33
+60.9%
13.0%US$225.00US$110.00n/a31
Jul ’25US$131.52
US$157.98
+20.1%
16.9%US$225.00US$90.00n/a33
Jun ’25US$125.00
US$134.10
+7.3%
19.0%US$225.00US$80.00n/a34
May ’25US$109.70
US$127.79
+16.5%
19.8%US$225.00US$80.00n/a34
Apr ’25US$124.30
US$126.91
+2.1%
19.5%US$225.00US$80.00n/a34
Mar ’25US$95.15
US$96.53
+1.4%
13.2%US$140.00US$70.00n/a34
Feb ’25US$85.61
US$96.20
+12.4%
13.1%US$140.00US$70.00n/a34
Jan ’25US$85.34
US$92.78
+8.7%
14.9%US$140.00US$65.30n/a35
Dec ’24US$75.93
US$82.54
+8.7%
9.7%US$100.00US$65.30n/a35
Nov ’24US$69.40
US$79.73
+14.9%
11.7%US$100.00US$58.50US$99.7335
Oct ’24US$68.03
US$79.66
+17.1%
11.7%US$100.00US$58.50US$100.3135
Sep ’24US$70.39
US$76.81
+9.1%
12.8%US$100.00US$46.00US$96.2434
Aug ’24US$70.76
US$76.57
+8.2%
12.8%US$100.00US$46.00US$101.5134
Jul ’24US$63.11
US$76.61
+21.4%
13.1%US$100.00US$46.00US$131.5232
Jun ’24US$69.09
US$70.94
+2.7%
16.8%US$100.00US$45.00US$125.0031
May ’24US$62.35
US$70.52
+13.1%
16.7%US$100.00US$45.00US$109.7031
Apr ’24US$60.34
US$68.32
+13.2%
15.0%US$100.00US$45.00US$124.3034
Mar ’24US$57.34
US$65.68
+14.5%
15.9%US$100.00US$45.00US$95.1532
Feb ’24US$62.60
US$64.74
+3.4%
16.7%US$100.00US$45.00US$85.6132
Jan ’24US$49.98
US$65.05
+30.2%
17.2%US$100.00US$45.00US$85.3433
Dec ’23US$55.49
US$67.39
+21.4%
16.1%US$100.00US$45.00US$75.9334
Nov ’23US$54.86
US$66.95
+22.0%
16.8%US$100.00US$45.00US$69.4033

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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