Microchip Technology Incorporated (MCHP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-86.6%

$10.55

vs $78.55 price

Levered DCF

$11.34

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.42

Safe zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	239.3×	-9,682×	25.49×	20.58×	32.25×	115.84×	28.49×	57.54×
P/B	5.44×	3.67×	7.31×	7.08×	7.04×	7.55×	2.9×	3.91×
P/S	7.42×	5.91×	6.37×	5.46×	6.08×	7.41×	3.07×	3.86×
EV / EBITDA	28.76×	29.71×	15.82×	12.79×	17.08×	26.78×	13.77×	19.48×
Gross margin	57.7%	56.1%	65.4%	67.5%	65.2%	62.1%	61.5%	54.8%
Operating margin	10.4%	6.7%	33.7%	36.9%	27.1%	18.4%	12.3%	13.4%
Net margin	4.3%	-0.0%	25.0%	26.5%	18.8%	6.4%	10.8%	6.7%
Current ratio	2.09×	2.59×	1.2×	0.98×	1.75×	0.89×	1.35×	0.93×
Debt / equity	0.86×	0.8×	0.91×	1.01×	1.33×	1.7×	1.72×	1.95×
Interest coverage	2.21×	1.18×	12.97×	15.28×	7.2×	2.8×	1.3×	1.42×
Dividend yield	3.1%	3.8%	1.9%	1.5%	1.2%	1.0%	2.2%	1.7%
Payout ratio	540.3%	-195140.0%	47.8%	31.1%	39.2%	111.1%	61.4%	96.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	3.1%	-0.0%	28.6%	34.4%	21.8%	6.5%	10.2%	6.7%
Return on invested capital	3.1%	-0.0%	14.4%	16.3%	10.8%	6.5%	3.9%	4.1%
Return on assets	1.4%	-0.0%	12.0%	13.7%	7.9%	2.1%	3.3%	1.9%
Free cash flow yield	2.5%	3.0%	5.4%	6.8%	6.0%	4.5%	9.1%	7.0%
Earnings yield	0.6%	-0.0%	3.9%	4.9%	3.1%	0.9%	3.5%	1.7%
Enterprise value	$40.3B	$30.9B	$54.4B	$52.5B	$49B	$49.1B	$25.4B	$30.5B
Net debt / EBITDA	3.78×	4.7×	1.66×	1.55×	2.62×	4.8×	4.99×	6.3×
Cash conversion cycle (days)	221	271	207	180	136	133	143	133