What Is MCHP Fair Value?
Microchip Technology (MCHP) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Microchip Technology (MCHP) has a composite fair value estimate of $72.55 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $72.93, suggesting the stock is fair value by 0.5%.
Data as of August 29, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$72.55
vs. current price of $72.93(-0.5%)
How Is MCHP Fair Value Calculated?
Four independent models estimate what MCHP is worth. Each uses different inputs and assumptions. The composite blends them by weight.
MCHP Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$89.72
+23.0%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$32.32
-55.7%Overvalued
Inputs used
MCHP Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$31.22
-57.2%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$91.83
+25.9%Undervalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $72.93 is 23.0% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.71B | $1.51B |
| Year 2 | $2.13B | $1.67B |
| Year 3 | $2.67B | $1.85B |
| Year 4 | $3.33B | $2.05B |
| Year 5 | $4.16B | $2.27B |
| Year 6 | $5.21B | $2.52B |
| Year 7 | $6.51B | $2.79B |
| Year 8 | $8.13B | $3.09B |
| Year 9 | $10.17B | $3.42B |
| Year 10 | $12.71B | $3.79B |
| Terminal Value | $125.69B | $37.47B |
What Are MCHP's Key Financial Metrics?
Earnings & Growth
Current Price
$72.93
EPS (TTM)
$0.66
Forward P/E
16.0
Profit Margin
9.3%
Cash & Balance Sheet
Free Cash Flow
1.4B
EBITDA
1.5B
Book Value
$11.88
Total Debt
5.4B
What Do Analysts Say About MCHP?
Low
$80.00
Average
$108.64
High
$135.00
Upside
+49.0%
MCHP Fair Value FAQ
What is the fair value of MCHP?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), MCHP's estimated fair value is $72.55. The stock is currently trading at $72.93, which makes it fair value by our analysis.
How is MCHP's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is MCHP overvalued or undervalued?
Based on our analysis, MCHP is fair value. The current price of $72.93 is 0.5% above our estimated fair value of $72.55.
What do Wall Street analysts say about MCHP?
25 analysts cover Microchip Technology with a consensus rating of "Buy." The average price target is $108.64, ranging from $80.00 to $135.00. This implies 49.0% upside from the current price.