SweetValueLab
Write for us

Microchip Technology Incorporated — Intrinsic Value & Fair Price

MCHP
NASDAQTechnologySemiconductorsCIK 0000827054microchip.comAbout MCHP
Last close · Oct 16, 202673.85−0.41 (−0.55%)
Market cap$40.1B
Model value · DCF · Perpetuity growth · 5y
45.55
Microchip Technology closed at $73.85 — overvalued by 62% vs model.
31.54the model's range76.29

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
1.12 – 189.22
Wall St. target
95.00 22% below
Above model, 1y
95 of 95 days

Price and model value

Embed this card

MCHP's close against its model value, as a 420×168 card for your own page. It updates nightly with this site and links back here.

Free to embed; keep the attribution link.
Loading chart…
What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.46%
Past 2 years
low 1.77%high 5.14%
Dividends per share, a year at a time
$0.80Aug ’21$1.06Aug ’22$1.48Aug ’23$1.80Aug ’24$1.82Aug ’25$1.82TTM
Dividends / free cash flow, FY2026
113.0%
Raised
23+ years in a row
Growth, 5 yrs
17.7% a year
Last change
+0.2% · Nov 2024
Every payment, with ex-dates · latest $0.455, paid Sep 9, 2026

Research on MCHP

No posts on MCHP yet.
Studied MCHP from its filings? Guest posts are reviewed before they go live.Write about MCHP →

How it is valued

Valued asCyclical
Revenue declining (~-21% recent)Thin margins (4.3% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for cyclical companies
P/E
284×
EV / EBITDA
63.8×
FCF yield
2.2%
Dividend yield, TTM
2.46%
Beta
1.76
Cost of capital (WACC)
10.48%
Full financials

Analyst actions

third-party, quoted
08-07Jefferies · target100.00
08-07UBS · target120.00
08-07Truist Financial · target90.00
12-16Cantor Fitzgerald · “Overweight” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists MCHP as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just MCHP. No account.

About Microchip Technology

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.

CEO
Steve Sanghi
Headquarters
Chandler, AZ
Employees
17,900
IPO
1993-03-19
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.