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Microchip Technology Incorporated — Intrinsic Value & Fair Price

MCHP
NASDAQTechnologySemiconductorsCIK 0000827054microchip.comAbout MCHP
Valuation grade ?B
Quant grade ?B
Last close · Oct 30, 202677.34−3.78 (−4.66%)
Model value · DCF · Perpetuity growth · 5y
51.43
Microchip Technology closed at $77.34 — overvalued by 50% vs model.
44.35the model's range60.74

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
1.24 – 182.65
Wall St. target
100.00 23% below
Above model, 1y
105 of 105 days

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

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.