NASDAQ
MCHP
Last Price
US $79.17
KEY FIGURES
MKT CAP
$43.0B
EPS
TTM
$0.83
PEG
TTM
0.14x
P/E
TTM
95.32x
P/S
TTM
8.38x
YIELD
2.30%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
-0.01%
Return on equity
ROIC: 0%
Valuation History
-
Price to Earnings
EV/EBITDA: 29.7X
Cash flow
Profit margin
-2.82%
(FY vs FY)
EBITDA Y/Y
-5.23%
(FY vs FY)
Cash flow Y/Y
-13.74%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $79.17
-99.13%
Default assumptions
EBITDA Multiple
Fair Value
Market $79.17
-94.42%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Microchip Technology Incorporated cash flow to debt ratio of 17.38% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Microchip Technology Incorporated's free cash flow has increased 12.81% from $772.10M last year to $871.00M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Microchip Technology Incorporated's debt to equity ratio is 0.83, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Microchip Technology Incorporated's debt has increased relative to shareholder equity from 0.80 last year to 0.83 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Microchip Technology Incorporated has a net debt to EBITDA ratio of 3.78x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Microchip Technology Incorporated's interest coverage ratio of 3.74 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Microchip Technology Incorporated's profit margin has increased (-77.54K%) in the last year from -0.01% to 8.80%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Microchip Technology Incorporated's short-term assets of $2.38G exceed its short-term liabilities of $1.14G
Decreasing performance - ROA.
Microchip Technology Incorporated's return on assets of 3.13% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Microchip Technology Incorporated's return on equity of 6.90%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Microchip Technology Incorporated's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Microchip Technology Incorporated had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Microchip Technology Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Microchip Technology Incorporated has a free cash flow yield of 2.03%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Microchip Technology Incorporated's yearly earnings has increased -40.54K% since last year from $-500.00K to $202.20M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Microchip Technology Incorporated's yearly revenue has increased 7.08% since last year from $4.40G to $4.71G, signaling increasing performance
Increasing performance - ROIC.
ROIC 5.01% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
Microchip Technology Incorporated's 3-year revenue CAGR of -17.65% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
Microchip Technology Incorporated had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Microchip Technology Incorporated had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Microchip Technology Incorporated is overvalued relative to its fair value price of 0.69 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Microchip Technology Incorporated has an earnings yield of 1.05%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Microchip Technology Incorporated is overvalued relative to its fair value price of 4.42 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Microchip Technology Incorporated has an EV/EBITDA ratio of 34.47x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Undervalued - PEG ratio value.
Microchip Technology Incorporated has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Microchip Technology Incorporated has a price-to-book ratio of 6.66x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Overvalued - P/S ratio.
Microchip Technology Incorporated has a price-to-sales ratio of 8.38x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue