MCHP Microchip Technology

semiconductor · 2026-10-07

N/A

fair · 55

Owner-earnings value$17.68

Price$81.26

Margin of safety -78.2%

Returns on capital 11.2/30

Consistency 11.4/22

Margins / pricing power 14.9/16

Balance sheet 3.0/16

Cash conversion 10/10

Capital allocation 4.7/6

Median ROIC10.2%

Gross margin60.2%

Net debt / EBITDA3.6x

FCF conversion169%

Share count / yr-0.2%

Profitable years3/4

Owner earnings (TTM)	1.07B
Owner-earnings yield	2.4%
Free-cash-flow yield	2.5%
Growth used (normalized)	0.0%
Market-implied growth (reverse DCF)	25.0%
Terminal growth	3.0%
Discount rate (hurdle)	13.2%

Yr	Owner earnings	Growth	PV
1	1.07B	0.0%	942.00M
2	1.07B	0.3%	835.05M
3	1.08B	0.7%	742.69M
4	1.09B	1.0%	662.74M
5	1.10B	1.3%	593.35M
6	1.12B	1.7%	532.97M
7	1.14B	2.0%	480.30M
8	1.17B	2.3%	434.25M
9	1.20B	2.7%	393.90M
10	1.24B	3.0%	358.46M

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~25%/yr owner-earnings growth over 10y (reverse DCF); model credits 0%.

Date	Quality	Price	Value	MoS	Rating
2026-10-07	55	$81.26	$17.68	-78.2%	N/A
2026-09-09	55	$73.38	$18.70	-74.5%	N/A
2026-08-12	55	$81.02	$18.88	-76.7%	N/A
2026-07-15	52	$87.11	$14.88	-82.9%	N/A
2026-07-02	52	$88.69	$15.13	-82.9%	N/A
2026-06-25	52	$92.48	$15.25	-83.5%	N/A
2026-06-23	52	$93.26	$15.11	-83.8%	N/A