Please note that Microchip Technology's price fluctuation is very steady at this time. Calculation of the real value of Microchip Technology is based on 3 months time horizon. Increasing Microchip Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Microchip stock is determined by what a typical buyer is willing to pay for full or partial control of Microchip Technology. Since Microchip Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Microchip Stock. However, Microchip Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 55.33
Real 50.6
Hype 56.46
Naive 51.34
The intrinsic value of Microchip Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Microchip Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Microchip Technology helps investors to forecast how Microchip stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Microchip Technology more accurately as focusing exclusively on Microchip Technology's fundamentals will not take into account other important factors:
Microchip Technology is presently projected to have takeover price of 36.25 B with market capitalization of 1.26 T, debt of 6.03 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Microchip Technology fundamentals before making investing decisions based on enterprise value of the company
About 99.0% of the company shares are owned by institutions such as pension funds. The company had not issued any dividends in recent years. Microchip Technology had 2:1 split on the 13th of October 2021. Based on the key measurements obtained from Microchip Technology's financial statements, Microchip Technology is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Microchip Technology has an asset utilization ratio of 48.1 percent. This implies that the Company is making USD0.48 for each dollar of assets. An increasing asset utilization means that Microchip Technology is more efficient with each dollar of assets it utilizes for everyday operations.
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Microchip Technology Ownership Allocation
Microchip Technology maintains a total of 229.09 Million outstanding shares. The majority of Microchip Technology outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Microchip Technology to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Microchip Technology. Please pay attention to any change in the institutional holdings of Microchip Technology as this could imply that something significant has changed or is about to change at the company. Also note that almost two million eighty-four thousand seven hundred fifty-five invesors are currently shorting Microchip Technology expressing very little confidence in its future performance.
Microchip Technology Profitability Analysis
The company reported the revenue of 7.63 B. Net Income was 1.91 B with profit before overhead, payroll, taxes, and interest of 3.32 B.
About Microchip Technology Valuation
The stock valuation mechanism determines Microchip Technology's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Microchip Technology based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Microchip Technology. We calculate exposure to Microchip Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Microchip Technology's related companies.
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.