StocksMCHP

MCHP

Microchip Technology IncorporatTechnology / SemiconductorsINTACT

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates in two segments, Semiconductor Products and Technology Licensing. The company offers general-purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors; and specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog products, including power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), gate drivers, safety, security, timing, application-specific standard products, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program mixed-signal microcontroller, FPGA, and microprocessor products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random-access memory, and electrically erasable random-access memory for footprint devices. Further, it licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate arrays, RF, analog, and neuromorphic compute products. Additionally, the company offers engineering services; wafer foundry, assembly, and test subcontracting manufacturing services; and timing systems, application-specific integrated circuits, and products for aerospace applications. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.

Share Price
$74.27
52W: $48.52 - $105.91
DCF Fair Value
$53.69
-38.3% Premium
P/E (TTM)
109.2x
ROIC
18%
Operating Margin
24%
FCF Yield
3.4%
Debt / Equity
0.84x
Piotroski Score
8/9
Altman Z-Score
3.05
Market Cap
$40.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($53.69)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$53.69
MOS Buy Target (-25%)
$40.27
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$74.27
DCF Fair Value
$53.74
-38.2% Premium
$1,365M
$100M$1,365M (Reported)$50,000M
12.0%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$5,100M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$14.3B
PV of Terminal Value
$20.0B
Implied Enterprise Value
$34.3B
Implied Equity Value
$29.2B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$1,529$1,712$1,918$2,148$2,406$2,514$2,627$2,745$2,869$2,998
Present Value (PV)$1,403$1,441$1,481$1,522$1,563$1,499$1,437$1,378$1,321$1,266

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-451% Premium
$13.48

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $0.68BVPS: $11.88
Revised Graham Formula-349.6% Premium
$16.52

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings3.2% Yield
$2.39 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.3BYield: 3.2%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
10.8% CAGR (Next 10 Yrs)

At the current price of $74.27, the market is assuming the business will compound Free Cash Flow at 10.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil MCHP with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Microchip Technology Incorporat. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 24% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Microchip Technology Incorporat (MCHP) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Microchip Technology Incorporat.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Microchip Technology Incorporat has an estimated DCF intrinsic fair value of $53.69 per share compared to its current market price of $74.27. This represents an estimated 38.3% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $13.48.

Related Technology Value Stocks & Sector Peers

Compare Microchip Technology Incorporat with audited intrinsic valuation models across the Technology sector.

View All S&P 500 Stocks