---
title: Microchip Technology (MCHP) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/mchp
ticker: MCHP
as_of: 2026-10-17
sector: Technology
industry: Semiconductors
---
# Microchip Technology (MCHP)

Microchip Technology (MCHP) closed at $73.85 on Oct 16, 2026, overvalued by 62% vs its model value of $45.55 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $73.85 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $45.55 |
| Price vs model | overvalued by 62% vs model |
| Range of that model | $31.54 – $76.29 |
| Market value | $40.1B |
| P/E (fiscal 2026) | 284.0 |
| Net margin (fiscal 2026) | 4.3% |
| Free cash flow (fiscal 2026) | $871.0M |
| Dividend yield (trailing twelve months) | 2.46% |
| Beta | 1.76 |
| Cost of capital (WACC) | 10.48% |
| Business classification | Cyclical (Revenue declining (~-21% recent), Thin margins (4.3% net margin), Pays dividends, Highly cyclical earnings) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.46% |
| Dividends per share, last 12 months | $1.82 |
| Dividends / free cash flow (fiscal 2026) | 113.0% |
| Raised | 23+ years in a row |
| Growth over 5 years | 17.7% a year |
| Latest payment | $0.455, ex-date Aug 24, 2026, paid Sep 9, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 19, 2021 | $0.80 |
| To Aug 18, 2022 | $1.06 |
| To Aug 21, 2023 | $1.48 |
| To Aug 22, 2024 | $1.80 |
| To Aug 22, 2025 | $1.82 |
| Trailing twelve months (to Aug 24, 2026) | $1.82 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $45.55 | $31.54 | $76.29 |
| DCF · Perpetuity growth · 10y | cross check | $58.04 | $41.08 | $94.76 |
| DCF · EBITDA exit · 5y | cross check | $189.22 | $156.23 | $227.35 |
| DCF · EBITDA exit · 10y | cross check | $188.91 | $144.96 | $245.33 |
| P/E · peers | cross check | $72.04 | $33.30 | $100.90 |
| P/E · own history | cross check | $52.37 | $41.00 | $204.14 |
| PEG | sanity check | $91.21 | $91.21 | $91.21 |
| EV/EBITDA · peers | cross check | $46.17 | $28.11 | $59.93 |
| EV/Revenue · peers | cross check | $94.81 | $40.51 | $162.26 |
| Earnings power value | cross check | $1.12 | $0.00 | $2.93 |
| Dividend discount | cross check | $34.86 | $25.98 | $45.75 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 1 open-market sale ($309,715.8); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | Sanghi Steve | President, CEO and Chair of Bd | Grant / award | 24,841 | $0 |
| Oct 1, 2026 | Sanghi Steve | President, CEO and Chair of Bd | Grant / award | 16,560 | $0 |
| Oct 1, 2026 | Krawczyk Joseph R II | SR. CORP VP, WW CLIENT ENGMT | Grant / award | 1,672 | $0 |
| Oct 1, 2026 | Krawczyk Joseph R II | SR. CORP VP, WW CLIENT ENGMT | Grant / award | 1,672 | $0 |
| Oct 1, 2026 | Duvenhage Stephanus | Sr. Corp VP, Analog Bus Unit | Grant / award | 1,609 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 19, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 5.07 Submission of Matters to a Shareholder Vote; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/827054/000082705426000042/mchp-20260818.htm |
| Aug 6, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/827054/000082705426000038/mchp-20260630.htm |
| Aug 6, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/827054/000082705426000037/mchp-20260806.htm |
| Jul 24, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/827054/000082705426000031/mchp-20260723.htm |
| Jul 6, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/827054/000082705426000029/arsfy2026.pdf |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Dodge & Cox | 2026-06-30 | 5,533,359 | $504.6M |
| Bridgewater | 2026-06-30 | 275,882 | $25.2M |
| Soros | 2026-06-30 | 227,800 | $20.8M |
| Lee Ainslie | 2026-06-30 | 7,205 | $657,096 |

5 tracked managers in all.

## About

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,…

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Source: https://sweetvaluelab.com/stocks/mchp (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.