Microchip Technology IncorporatedStock Price and Value Analysis

Should you buy Microchip Technology Incorporated stock? (NasdaqGS:MCHP). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is making money at a decent rate.
  • This company is very stable.
  • This company has stable growth.
  • This company has a low dividend yield.
  • This stock looks overpriced.

MCHP Free Cash Flow Trend

Based on historical returns, we believe that Microchip Technology Incorporated can grow its free cash at a rate of about 7%. That's positive!

Free Cash Flow trendline for MCHP
Free Cash Flow trendline for Microchip Technology Incorporated

Inside the MCHP Numbers

MCHP Price
(Microchip Technology Incorporated stock price per share)
$87.41
[?] MCHP Fair Price
(based on intrinsic value)
$43.15
[?] MCHP Safety Price (based on a variable margin of safety) $34.52
[?] PE Ratio versus Sector 118% higher than other Technology stocks
[?] PE Ratio versus Industry 188% higher than other Semiconductor - Broad Line stocks
[?] Cash Yield 4.16%
[?] Free Cash Flow Jitter 20%
[?] Dividend Yield 2%

Is Microchip Technology Incorporated Stock on Sale?

We believe that Microchip Technology Incorporated may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Microchip Technology Incorporated looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MCHP Stock?

Does Microchip Technology Incorporated have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.