MCHP · Intrinsic value
Is Microchip Technology Incorporated (MCHP) overvalued or undervalued?
Microchip Technology Incorporated (MCHP) trades at the delayed market price of $74.91 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $63.47 a share (priced within our range of $30.28 – $77.70). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is MCHP fairly valued?
- Fair value
- $63.47
- Market price
- $74.91
- Downside to fair value
- 15.3%
- Verdict
- Priced within our range of $30.28 – $77.70
Reverse DCF, on our cash-flow model rather than the fair value above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is MCHP's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Technology companies in US
Its strongest point: growing quickly. Its weakest: balance sheet looks stretched.
- Value · 38 of 100
Cheaper than 38% of Technology companies in US
- Price vs worth · 38 of 100
- Quality · 53 of 100
More profitable than 53% of Technology companies in US
- Financial health · 28 of 100
Financially stronger than 28% of Technology companies in US
- Growth · 88 of 100
Growing faster than 88% of Technology companies in US
- Momentum · 34 of 100
Outperformed 34% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
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MCHP DCF valuation, input by input
TickerWorth's fair value for Microchip Technology Incorporated (MCHP) is $63.47 a share, against the delayed market price of $74.91 (priced within our range of $30.28 – $77.70). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below.
Read the full reasoning
For this company that blend leans on peer multiples: our discounted-cash-flow model understates a business growing this fast, so read the gap as how the market prices it against comparable companies, not as a finding on cash flow. This is an educational model, not a price target or a recommendation.
The valuation discounts Microchip Technology Incorporated's projected free cash flows at a weighted-average cost of capital (WACC) of 12.6%, with a long-run terminal growth rate of 2.5%. About 68% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — MCHP would need sustained revenue growth of more than 25%/yr to justify today's price, against about 10.9% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, MCHP's modeled DCF value ranges from about $0.59 to $6.83 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Microchip Technology Incorporated would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of MCHP's intrinsic value. Figures update as new filings and prices come in.
Every input behind MCHP's DCF
| Input | Value |
|---|---|
| Base-year revenueMICROCHIP TECHNOLOGY INCORPORATED FY2026 10-K (accession 0000827054-26-000016): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2026 full year. | $4,713,100,000 |
| Base EBIT marginMICROCHIP TECHNOLOGY INCORPORATED FY2026 10-K (accession 0000827054-26-000016): us-gaap:OperatingIncomeLoss 490,100,000 / revenue 4,713,100,000 = 10.40%, FY2026. | 10.4% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 18% → 15% → 11% → 8% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.74 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesMICROCHIP TECHNOLOGY INCORPORATED FY2026 10-K (accession 0000827054-26-000016): WeightedAverageNumberOfDilutedSharesOutstanding = 545,200,000 shares, FY2026. | 545M |
| Market priceBackup price feed · as of 2026-10-19 15:21 UTC | $74.91 |
Change MCHP's assumptions
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What does Microchip Technology Incorporated do?
What does it do?
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. It operates in the Semiconductors industry (Technology sector), headquartered in United States. The company employs roughly 17,900 people.
How does it make money?
The business turns $5.1B in annual revenue into profit. Out of every $100 of sales, about $24 is left as operating profit (operating margin of 24.0%), after a 60% gross margin on the products/services it sells. After all costs, taxes and interest, 9.3% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.8× equity), comfortably covers its short-term bills (1.9× current ratio), and is currently profitable.
MCHP insider trading
We have no recent SEC Form 4 insider filings on file for Microchip Technology Incorporated. Form 4 covers US-listed companies only.
Common questions
What is MCHP's intrinsic value?
TickerWorth's blended fair value for Microchip Technology Incorporated (MCHP) is $63.47 per share, versus a market price of $74.91 (priced within our range of $30.28 – $77.70).
Is MCHP overvalued or undervalued?
Priced within our range of $30.28 – $77.70 at $74.91. We don't call MCHP overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for MCHP?
A WACC of 12.6% and a terminal growth rate of 2.5%.
Is Microchip Technology stock undervalued?
TickerWorth's fair value for Microchip Technology Incorporated (MCHP) is $63.47 against a market price of $74.91. Our read: Priced within our range of $30.28 – $77.70. This is a model estimate, not investment advice.
Microchip Technology (MCHP) DCF valuation and fair value
Our fair value for Microchip Technology Incorporated (MCHP) is $63.47, built on a 12.6% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Microchip Technology stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $74.91. A model estimate, not investment advice.
Microchip Technology (MCHP) insider trading
We have no recent SEC Form 4 insider filings on file for Microchip Technology Incorporated (MCHP). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.