Microchip Technology Valuation
| MCHP Stock | USD 78.04 0.19 0.24% |
At this time, the firm appears to be undervalued. Microchip Technology secures a last-minute Real Value of $83.93 per share. The latest price of the firm is $78.04. Our model forecasts the value of Microchip Technology from analyzing the firm fundamentals such as Current Valuation of 47.37 B, return on equity of -0.0285, and Profit Margin of (0.04) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Microchip Technology's valuation include:
Price Book 6.1878 | Enterprise Value | Enterprise Value Ebitda 60.9236 | Price Sales 10.0368 | Forward PE 30.6748 |
Undervalued
Today
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.
Microchip Technology's intrinsic value may or may not be the same as its current market price of 78.04, 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 78.04 | Real 83.93 | Target 83.72 | Hype 78.32 | Naive 73.75 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Microchip Technology's intrinsic value based on its ongoing forecasts of Microchip Technology's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Microchip Technology's closest peers.
Microchip Technology Cash |
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Microchip Revenue by Product
Microchip Technology Total Value Analysis
Microchip Technology is now forecasted to have valuation of 47.37 B with market capitalization of 42.28 B, debt of 5.67 B, and cash on hands of 379.1 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Microchip Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
47.37 B | 42.28 B | 5.67 B | 379.1 M |
Microchip Technology Investor Information
About 98.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.47. Microchip Technology last dividend was issued on the 24th of November 2025. The entity had 2:1 split on the 13th of October 2021. Based on the key measurements obtained from Microchip Technology's financial statements, Microchip Technology may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0576 | 0.0606 |
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| Total Cash From Operating Activities | 853.9 M | 1 B |
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| Operating Income | 547.4 M | 340.7 M |
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Microchip Technology Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Microchip connotes not a very effective usage of assets in February.Microchip Technology Profitability Analysis
Based on the key profitability measurements obtained from Microchip Technology's financial statements, Microchip Technology may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Microchip Technology's ability to earn profits and add value for shareholders.Net Loss | First Reported 1993-06-30 | Previous Quarter -18.6 M | Current Value 41.7 M | Quarterly Volatility 140 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.46 | 0.5 |
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| Operating Profit Margin | 0.0576 | 0.0606 |
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| Pretax Profit Margin | 0.0097 | 0.0102 |
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For Microchip Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Microchip Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Microchip Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Microchip Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Microchip Technology over time as well as its relative position and ranking within its peers.
Microchip Technology Earnings per Share Projection vs Actual
The next projected EPS of Microchip Technology is estimated to be 0.3832 with future projections ranging from a low of 0.4 to a high of 0.45. Microchip Technology's most recent 12-month trailing earnings per share (EPS TTM) is at -0.47. Please be aware that the consensus of earnings estimates for Microchip Technology is based on EPS before non-recurring items and includes expenses related to employee stock options.Microchip Technology Earnings Estimation Breakdown
The calculation of Microchip Technology's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Microchip Technology is estimated to be 0.3832 with the future projection ranging from a low of 0.4 to a high of 0.45. Please be aware that this consensus of annual earnings estimates for Microchip Technology is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.40 Lowest | Expected EPS | 0.45 Highest |
Microchip Technology Earnings Projection Consensus
Suppose the current estimates of Microchip Technology's value are higher than the current market price of the Microchip Technology stock. In this case, investors may conclude that Microchip Technology is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Microchip Technology's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2025 | Current EPS (TTM) | |
| 26 | 94.24% | 0.35 | 0.3832 | -0.47 |
Microchip Technology Ownership Allocation
Microchip Technology maintains a total of 540.45 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 three million two hundred fourty-two thousand six hundred eighty-one invesors are currently shorting Microchip Technology expressing very little confidence in its future performance.Microchip Technology Profitability Analysis
The company reported the previous year's revenue of 4.4 B. Net Loss for the year was (500 K) with profit before overhead, payroll, taxes, and interest of 2.28 B.Microchip Technology Past Distributions to stockholders
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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.8 B | 1.5 B | |
| Pretax Profit Margin | 0.01 | 0.01 | |
| Operating Profit Margin | 0.06 | 0.06 | |
| Gross Profit Margin | 0.50 | 0.46 |
Microchip Technology Quarterly Retained Earnings |
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A single share of Microchip Technology represents a small ownership stake in the entity. As a stockholder of Microchip, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Microchip Technology Dividends Analysis For Valuation
As of 02/06/2026, Dividends Paid is likely to grow to about 1.2 B, while Dividend Yield is likely to drop 0.03. . At this time, Microchip Technology's Retained Earnings are relatively stable compared to the past year. As of 02/06/2026, Retained Earnings Total Equity is likely to grow to about 7 B, though Earnings Yield is likely to grow to (0.000021).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.1 B | 1.2 B | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | -2.2 K | -2.1 K | |
| Dividend Paid And Capex Coverage Ratio | 0.73 | 0.70 |
There are various types of dividends Microchip Technology can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Microchip shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Microchip Technology directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Microchip pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Microchip Technology by the value of the dividends paid out.
Microchip Technology Growth Indicators
Investing in growth stocks can be very risky. If the company such as Microchip Technology does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 537.3 M | |
| Quarterly Earnings Growth Y O Y | -0.816 | |
| Forward Price Earnings | 30.6748 |
Microchip Technology Current Valuation Indicators
Microchip Technology's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Microchip Technology's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Microchip Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Microchip Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Microchip Technology's worth.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.