Microchip Technology Inc (MCHP) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devi...
Microchip Technology Inc (MCHP) currently trades at a P/E ratio of 83.82 (historical range: 15.45–156.19, median: 30.28), placing it at the 76th percentile — above its historical average, P/S ratio of 7.83 (range: 3.99–16.74, 71th percentile — above its historical average), EV/EBITDA of 56.90 (range: 12.48–822.09, 68th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Microchip Technology Inc's P/E ratio has expanded by 71% over the observed period (from an average of 38.2 to 65.4).
Microchip Technology Inc trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 83.82 | 30.28 | 76th | above its historical average |
| P/S Ratio | 7.83 | 6.22 | 71th | above its historical average |
| EV/EBITDA | 56.90 | 30.02 | 68th | above its historical average |
| FCF Yield | 2.77% | 4.85% | 30th | above its historical average |
Microchip Technology Inc (MCHP) Valuation & P/E History
Microchip Technology Inc (MCHP) is a US-listed stock operating in the Technology sector, specifically the Semiconductors & Related Devices industry currently trading at $73.76 with a market capitalization of $40.0 billion. This page provides historical valuation analysis for MCHP based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 83.82 is above the historical median of 30.28, placing MCHP at the 76th percentile of its valuation range. The P/S ratio of 7.83 compares to a median of 6.22.
MCHP Valuation Metrics & Historical Range
The valuation table above shows Microchip Technology Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether MCHP is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests MCHP is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Microchip Technology Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is MCHP Overvalued or Undervalued?
Microchip Technology Inc trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 72 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive MCHP is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full MCHP analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.MCHP trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.