MICROCHIP TECHNOLOGY INC (MCHPP)

Semiconductors & Related Devices

Latest Price

$61.70

TTM P/E

90.74

Normalized P/E

32.61

Div Yield

2.95%

Book Value

11.89

P/B Ratio

5.19

Valuation metrics

EPS: $0.22

Book value / share: $11.87

Formula: √(22.5 × EPS × BVPS)

Graham Number

$7.66

88% downside

Norm. op. income: $998M (median of 7yr)

Tax rate: 18%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$5.47

91% downside

Base FCF: $2.5B (median of recent 5yr)

Growth: 18%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$196.96

+219% upside

EPS: $0.22

Target P/E: 33×

Formula: EPS × P/E

P/E Fair Value

$7.26

88% downside