Microchip Technology Valuation

MCHP Stock  USD 65.04  0.27  0.42%   
At this time, Microchip Technology appears to be overvalued. Microchip Technology has a regular Real Value of $58.73 per share. The regular price of Microchip Technology is $65.04. Our model calculates the value of Microchip Technology from reviewing Microchip Technology fundamentals such as Profit Margin of -0.02 %, return on equity of -0.0109, and Current Valuation of 40.2 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Microchip Technology's valuation include:
 Price Book
5.3426
 Enterprise Value
40.2 B
 Enterprise Value Ebitda
45.8209
 Price Sales
8.008
 Forward PE
24.8139
Overvalued
Today
65.04
Please note that Microchip Technology's price fluctuation is Very Low 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 65.04, 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  65.04 Real  58.73 Target  86.67 Hype  64.77 Naive  60.79
The real value of Microchip Technology stock represents the true economic worth of the business, independent of short-term market sentiment. Intrinsic value for Microchip Technology's is typically estimated using financial models such as discounted cash flow or earnings-based approaches.
58.73
Real Value
71.25
Upside
Forecasting the upside and downside scenarios for Microchip Technology allows investors to calibrate position sizing. Microchip stock's contribution to portfolio performance depends on both its intrinsic value and its market dynamics.
Earnings
Estimates
LowProjectedHigh
0.390.450.41
Details
Hype
Prediction
LowEstimatedHigh
62.1364.7767.41
Details
Potential
Annual Dividend
LowForecastedHigh
1.091.141.20
Details
24 Analysts
Consensus
LowTarget PriceHigh
78.8786.6796.20
Details
Sophisticated investors approach Microchip Technology valuation systematically: they start with intrinsic value and then cross-check against market multiples to see how similar companies are currently priced.
The current value of Cash is estimated at 931.83 Million, reflecting a climbing pattern. Previously, Cash was valued at 887.46 Million.As of today, Analyst projections suggest Change To Account Receivables may climb to approximately 548.2 M, whereas Accounts Payable is moving lower toward slightly above 121.5 M.

Microchip Technology Cash

931.83 Million

Microchip Revenue by Product

Microchip Technology Total Value Analysis

From a capital-structure perspective, Microchip Technology is being framed with enterprise value of 40.2 B, market capitalization of 35.01 B, debt obligations near 5.67 B, and cash resources of 379.1 M. That snapshot should be treated as one valuation lens rather than as final proof of fair value because the interpretation can shift quickly when financing assumptions change.
  Takeover PriceMarket CapDebt ObligationsCash
40.2 B
35.01 B
5.67 B
379.1 M

Microchip Technology Investor Information

About 100.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.79. Microchip Technology recorded a loss per share of 0.3. The entity last dividend was issued on the 23rd of February 2026. The firm completed a 2:1 stock split on 13th of October 2021. From a financial health perspective, Microchip Technology exhibits steady capital management and liquidity alignment. Operating returns remain positive, suggesting ongoing earnings capacity. In technology businesses, recurring revenue quality, R&D investment discipline, and operating margin expansion are key durability indicators.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.05760.0606
Notably Down
Very volatile
Total Cash From Operating Activities853.9 MB
Significantly Down
Slightly volatile
Operating Income547.4 M340.7 M
Way Up
Slightly volatile

Microchip Technology Asset Utilization

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 28.63 percent. This connotes that the Company is making $0.29 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.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

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 April. Profitability indicators assess Microchip Technology's ability to earn profits and add value for shareholders.
 
Net Loss  
 First Reported
1993-06-30
 Previous Quarter
41.7 M
 Current Value
34.9 M
 Quarterly Volatility
139.6 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
As of today, Gross Profit is anticipated to decline to approximately 1.5 B. In addition to that, Pretax Profit Margin is anticipated to decline to 0.01
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.460.5
Significantly Down
Pretty Stable
Operating Profit Margin0.05760.0606
Notably Down
Very volatile
Pretax Profit Margin0.00970.0102
Notably Down
Pretty Stable
Profitability analysis for Microchip Technology works best when investors review the financial ratios and fundamental drivers that explain how efficiently the business converts revenue, assets, and operating inputs into earnings. These profitability indicators help investors judge how well Microchip Technology uses its assets to create earnings power and long-term shareholder value.

Microchip Technology Earnings per Share Projection vs Actual

By analyzing Microchip Technology's earnings estimates, investors can diagnose trend shifts in analyst expectations and compare EPS projections across timeframes. EPS is most informative when read together with margin stability and cash-flow conversion. EPS forecast analysis for Microchip Technology is useful, but investors should remember that consensus numbers often reflect a normalized estimate rather than a full reconstruction of every accounting detail. Microchip Technology is projected to generate 0.4526 in earnings per share on 31st of March 2026. Future earnings-per-share expectations are often a key input when investors test valuation assumptions and momentum into the next quarter.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Microchip Technology Ownership Allocation

The majority of Microchip Technology's outstanding shares are owned by institutional investors. Large asset managers, pension funds, and sovereign wealth funds that invest on behalf of clients or beneficiaries are typically subject to stricter disclosure rules than retail investors — including mandatory 13F filings that reveal quarterly position changes. Tracking these filings can highlight shifts in institutional conviction around Microchip Technology. Microchip Technology's share base consists of approximately 100% institutional ownership, 2% insider ownership, and 0% public float.

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 2.42 B.

Microchip Technology Past Distributions to Stockholders

Microchip Technology Enterprise and Market Value

Microchip Technology is a large-cap equity in Semiconductors & Semiconductor Equipment, Information Technology, SP 500 Index categories. Cash-flow stability anchors valuation sensitivity. We review the company from a portfolio-construction standpoint emphasizing diversification and stability.

Methodology

Unless otherwise specified, financial data for Microchip Technology is derived from periodic company reporting (annual and quarterly where available). Asset-level metrics are computed daily by Macroaxis LLC and refreshed regularly based on asset type. Microchip (USA Stocks:MCHP) prices are typically delayed by approximately 20 minutes from primary exchanges for listed equities. Data may be delayed depending on reporting sources and market conventions Valuation estimates and intrinsic-value models use inputs from public financial disclosures and may not represent market consensus.

Assumptions

Our reporting uses public filings and market reference sources and institutional disclosures from U.S. Securities and Exchange Commission (SEC) via EDGAR. Normalization procedures may introduce minor timing offsets. All analytics are generated using standardized, rules-based models designed to promote consistency and comparability across instruments. Model assumptions, reference parameters, and selected computational inputs are available in the Model Inputs section. If you have questions about our data sources or methodology, please contact Macroaxis Support.

Analyst Sources

Microchip Technology may have analyst coverage included in Macroaxis-derived consensus inputs when available. Updates may occur throughout the day.

Investors studying Microchip Technology need valuation context because market price alone does not explain whether the business is being priced aggressively or cautiously. Used properly, valuation helps investors judge whether the current market view looks justified relative to the company's operating evidence.
Share ownership in Microchip Technology is more than a price quote; it is a proportionate claim on the company's equity base and future distributions. Shares outstanding are near 541.1 M.

Microchip Technology Dividends Analysis For Valuation

As of today, Analyst projections suggest Dividends Paid may climb to approximately 1.2 B, whereas Dividend Yield is moving lower toward 0.03.. The current value of Retained Earnings are estimated at 6.98 Billion, reflecting a climbing pattern. Previously, Retained Earnings were valued at 6.65 Billion.. As of today, Analyst projections suggest Retained Earnings Total Equity may climb to approximately 7 B, despite prior volatility, Earnings Yield is estimated to climb to -0.000021 .
Last ReportedProjected for Next Year
Dividends Paid1.1 B1.2 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
A dividend review of Microchip Technology is useful because distributions affect shareholder return even when they do not change enterprise value directly. A credible dividend profile can support valuation confidence, while an unstable one may call for more caution around expected return.

Microchip Technology Growth Indicators

A growth thesis around Microchip Technology should be tested carefully because strong valuation often reflects confidence that the business can keep compounding faster than peers. Used properly, growth analysis helps investors separate durable compounding from optimism that may already be fully priced in.
Common Stock Shares Outstanding537.3 M
Quarterly Earnings Growth Y O Y-0.816
Forward Price Earnings24.8139

Microchip Technology Current Valuation Indicators

Valuation work on Microchip Technology becomes more reliable when investors compare several lenses at once, including market value, enterprise value. revenue scale, and expected cash-flow durability. The better valuation questions are comparative: what is the market paying for each dollar of revenue, profit, and asset base, and is that premium justified?

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