Monolithic Power Systems, Inc. (MPWR) 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

-81.2%

$242.05

vs $1,288.54 price

Levered DCF

$372.31

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

41.02

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	70.7×	16.1×	70.24×	37.74×	93.43×	99.79×	70.64×	49.26×
P/B	12.33×	9.14×	14.65×	9.9×	18.18×	16.99×	9.93×	8.1×
P/S	15.6×	13.03×	16.49×	9.21×	18.73×	19.45×	12.24×	8.9×
EV / EBITDA	51.86×	46.08×	54.05×	28.89×	74.54×	86.56×	62.67×	39.24×
Gross margin	55.2%	55.3%	56.1%	58.4%	56.8%	55.2%	55.2%	55.4%
Operating margin	26.1%	24.4%	26.5%	29.4%	21.7%	18.8%	16.3%	19.5%
Net margin	22.1%	81.0%	23.5%	24.4%	20.0%	19.5%	17.3%	18.1%
Current ratio	5.91×	5.31×	7.74×	5.36×	4.96×	5.73×	6.67×	7.22×
Debt / equity	0.01×	0.01×	0×	0×	0×	0×	0×	0×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	0.7%	0.8%	0.6%	0.8%	0.5%	0.5%	0.9%	0.9%
Payout ratio	46.2%	13.5%	43.5%	31.5%	45.2%	54.0%	61.8%	45.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.4%	56.8%	20.8%	26.2%	19.5%	17.0%	14.1%	16.4%
Return on invested capital	15.3%	16.2%	18.5%	24.5%	17.2%	14.5%	11.5%	14.1%
Return on assets	14.7%	49.4%	17.6%	21.3%	15.3%	13.6%	11.4%	13.3%
Free cash flow yield	1.5%	2.2%	1.9%	1.1%	1.0%	1.3%	1.6%	2.3%
Earnings yield	1.4%	6.2%	1.4%	2.6%	1.1%	1.0%	1.4%	2.0%
Enterprise value	$42.5B	$28.1B	$29.5B	$16.2B	$22.4B	$16.1B	$7.5B	$5B
Net debt / EBITDA	-1.31×	-1.11×	-0.96×	-0.51×	-0.63×	-1.79×	-1.42×	-1.35×
Cash conversion cycle (days)	166	156	196	229	161	150	166	198