What Is MCHP Fair Value?
Microchip Technology (MCHP) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, Microchip Technology (MCHP) has a composite fair value estimate of $66.42 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $86.26, suggesting the stock is overvalued by 23.0%.
Data as of July 16, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$66.42
vs. current price of $86.26(-23.0%)
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 →
$72.62
-15.8%Overvalued
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 →
$32.77
-62.0%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 →
$29.14
-66.2%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.
$97.29
+12.8%Fair Value
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 $86.26 is 15.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.42B | $1.26B |
| Year 2 | $1.78B | $1.40B |
| Year 3 | $2.23B | $1.55B |
| Year 4 | $2.78B | $1.71B |
| Year 5 | $3.48B | $1.89B |
| Year 6 | $4.35B | $2.10B |
| Year 7 | $5.44B | $2.32B |
| Year 8 | $6.79B | $2.57B |
| Year 9 | $8.49B | $2.85B |
| Year 10 | $10.62B | $3.15B |
| Terminal Value | $104.45B | $30.99B |
What Are MCHP's Key Financial Metrics?
Earnings & Growth
Current Price
$86.26
EPS (TTM)
$0.22
Forward P/E
20.8
Profit Margin
4.9%
Cash & Balance Sheet
Free Cash Flow
1.1B
EBITDA
1.2B
Book Value
$11.87
Total Debt
5.6B
What Do Analysts Say About MCHP?
Low
$80.00
Average
$113.38
High
$135.00
Upside
+31.4%
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 $66.42. The stock is currently trading at $86.26, which makes it overvalued 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 overvalued. The current price of $86.26 is 23.0% above our estimated fair value of $66.42.
What do Wall Street analysts say about MCHP?
24 analysts cover Microchip Technology with a consensus rating of "Buy." The average price target is $113.38, ranging from $80.00 to $135.00. This implies 31.4% upside from the current price.