Microchip Technology Stock Alpha and Beta Analysis
| MCHP Stock | USD 66.69 0.63 0.95% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Microchip Technology. It also helps investors analyze the systematic and unsystematic risks associated with investing in Microchip Technology over a specified time horizon. Remember, high Microchip Technology's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Microchip Technology's market risk premium analysis include:
Beta 1.37 | Alpha (0.41) | Risk 2.23 | Sharpe Ratio (0.12) | Expected Return (0.27) |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Microchip |
Microchip Technology Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Microchip Technology market risk premium is the additional return an investor will receive from holding Microchip Technology long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Microchip Technology. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Microchip Technology's performance over market.| α | -0.41 | β | 1.37 |
Microchip Technology expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Microchip Technology's Buy-and-hold return. Our buy-and-hold chart shows how Microchip Technology performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Microchip Technology Market Price Analysis
Market price analysis indicators help investors to evaluate how Microchip Technology stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Microchip Technology shares will generate the highest return on investment. By understating and applying Microchip Technology stock market price indicators, traders can identify Microchip Technology position entry and exit signals to maximize returns.
Microchip Technology Return and Market Media
The median price of Microchip Technology for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 76.06 with a coefficient of variation of 5.96. The daily time series for the period is distributed with a sample standard deviation of 4.47, arithmetic mean of 74.95, and mean deviation of 3.18. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
| Microchip Technology dividend paid on 5th of September 2024 | 09/05/2024 |
1 | Acquisition by Ganesh Moorthy of 9754 shares of Microchip Technology subject to Rule 16b-3 | 09/27/2024 |
2 | Stay Ahead of the Game With Microchip Tech Q2 Earnings Wall Streets Insights on Key Metrics | 10/31/2024 |
3 | Microchip Technology Announces Financial Results for Second Quarter of Fiscal Year 2025 | 11/05/2024 |
4 | Earnings call Microchip Technology navigates market headwinds in Q2 FY2025 | 11/07/2024 |
5 | Introducing a Wide Portfolio of IGBT 7 Power Devices Optimized for Applications Across Sustainability, E-Mobility and Data Centers | 11/12/2024 |
6 | Community Bank Trust Waco Texas Acquires 427 Shares of Microchip Technology Incorporated | 11/13/2024 |
7 | Microchip to Accelerate Real-time Edge AI with NVIDIA Holoscan | 11/14/2024 |
8 | Microchips Moorthy to Leave as CEO, With Chairman Retaking Role | 11/18/2024 |
9 | Microchip Technology Incorporated Is About To Go Ex-Dividend, And It Pays A 2.8 percent Yield | 11/19/2024 |
10 | Acquisition by Richard Simoncic of 1770 shares of Microchip Technology at 62.86 subject to Rule 16b-3 | 11/22/2024 |
About Microchip Technology Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Microchip or other stocks. Alpha measures the amount that position in Microchip Technology has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0121 | 0.0151 | 0.0187 | 0.0267 | Price To Sales Ratio | 6.08 | 5.46 | 6.37 | 4.33 |
Microchip Technology Upcoming Company Events
As portrayed in its financial statements, the presentation of Microchip Technology's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Microchip Technology's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Microchip Technology's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Microchip Technology. Please utilize our Beneish M Score to check the likelihood of Microchip Technology's management manipulating its earnings.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 2nd of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
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Additional Tools for Microchip Stock Analysis
When running Microchip Technology's price analysis, check to measure Microchip Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microchip Technology is operating at the current time. Most of Microchip Technology's value examination focuses on studying past and present price action to predict the probability of Microchip Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microchip Technology's price. Additionally, you may evaluate how the addition of Microchip Technology to your portfolios can decrease your overall portfolio volatility.