Information Technology · Semiconductors · US stock · price as of 16 Oct 2026
Key indicators
Price
$73.85
52-week range
$47.28 – $104.75
Market cap
$40.7B
P/E (trailing)
84.4×
EV / EBITDA
31.1×
Free-cash-flow yield
2.7%
Dividend yield
2.5%
Revenue (last 12 months)
$5.1B
Revenue growth (3y a year)
−17.6%
Operating margin
15.5%
Return on invested capital
5.7%
Net debt / EBITDA
3.5×
Fair value
Blended fair value$35.72 range $26 – $36
Versus priceOvervalued−52% to fair value
Peer multiples
$45.71
Fundamentals-adjusted multiple
$25.72
10-year DCF (market-scaled)
$6.70
Earnings power value (floor, not blended)
$4.86
Model uncertainty
High
X-Ray Score
27/ 100 · High confidence · ahead of 3% of sector peers
Valuation30
Growth6
Profitability26
Financial health29
Dividends60
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Microchip Technology designs and makes microcontrollers, analog and mixed-signal chips, programmable logic devices, memory products and related development tools. Its chips are embedded in equipment that needs simple control and connectivity, such as industrial machines, vehicles, aerospace and defense systems, consumer devices and data centre gear. Customers are electronics makers of all sizes, which it reaches through direct sales and distributors. It also earns income from technology licensing.
Revenue came to $5.1 billion over the last twelve months, earned by supplying chips and development tools to equipment makers. Revenue has changed at -17.6% a year across the last three years, a steep decline. The operating margin is 15.5%, the business earns 6% on the capital invested in it, and net debt is 3.5 times EBITDA. The dividend yield is 2.5%.
StocksXray gives Microchip Technology Inc an X-Ray Score of 27 out of 100 (high confidence), ahead of 3% of the S&P 500 stocks in its sector. Its strongest lens is dividends (60) and its weakest is growth (6).
Our fair value blend is $35.72 (range $26.05 to $35.72). At $73.85 the stock trades 107% above that blend, so the label is "Overvalued" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Microchip Technology Inc (MCHP)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$67.80
$76.90
$84.06
$46.49
$63.90
$73.85
Market cap
$38.4B
$42.9B
$46.1B
$25.0B
$34.8B
$40.7B
P/E
29.9×
19.1×
24.2×
–
290.5×
84.4×
EV / revenue
6.7×
5.8×
6.8×
6.8×
8.5×
8.9×
EV / EBITDA
15.3×
11.9×
15.0×
28.5×
34.0×
31.1×
Price / free cash flow
15.5×
13.7×
17.7×
32.4×
40.0×
36.6×
Free-cash-flow yield
6.4%
7.3%
5.7%
3.1%
2.5%
2.7%
Price / book
6.5×
6.6×
6.9×
3.5×
5.4×
6.3×
Dividend yield
1.34%
1.64%
2.00%
3.91%
2.85%
2.46%
Fundamentals checklist ● 0 Good · ● 6 Average · ● 10 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−5.0%Average
Free-cash-flow yield2.7%Average
Risk models
Altman Z score2.9×Average
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)−62.0%Bad
Free-cash-flow growth (3y)−34.7%Bad
Revenue growth (3y)−17.6%Bad
Growth consistency30%Bad
Balance sheet
Current ratio1.9×Average
Net debt / EBITDA3.5×Bad
Interest cover3.7×Bad
Valuation
Fair value vs price0.5×Bad
EBIT / EV yield1.7%Bad
Profitability
Return on invested capital5.7%Bad
Operating margin15.5%Average
Gross profitability21.4%Bad
XStocksXray
Microchip Technology Inc (MCHP)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
6,821
8,439
7,634
4,402
4,713
5,122
Gross profit
4,450
5,698
4,996
2,468
2,721
3,083
Operating income
1,850
3,116
2,571
296
490
795
Net income
1,286
2,238
1,907
-1
230
478
Diluted EPS ($)
2.27
4.02
3.48
-0.01
0.22
0.88
Free cash flow
2,473
3,135
2,608
772
871
1,111
Gross margin
65.2%
67.5%
65.4%
56.1%
57.7%
60.2%
Operating margin
27.1%
36.9%
33.7%
6.7%
10.4%
15.5%
Net margin
18.8%
26.5%
25.0%
−0.0%
4.9%
9.3%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
16,200
16,370
15,873
15,375
14,370
14,407
Cash
317
234
320
772
240
272
Total debt
7,687
6,440
6,000
5,630
5,496
5,361
Equity
5,895
6,514
6,658
7,078
6,432
6,451
Dividend per share ($)
0.91
1.26
1.68
1.82
1.82
1.82
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.