Microchip Fair Value
MC
The fair market value of MCHP.SW stock is 43.92 CHF. Relative to the market price of 0 CHF Microchip is overvalued by 25.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Microchip Valuation
The fair value level of 43.92 CHF can be considered as an effective entry point for long-term investors to start investing in MCHP.SW stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
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Current market price
Market price:
MCHP.SW stock is overvalued
It means the current price may concern as a Risky Entry Point
Microchip Technology Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
75.38
2
Median P/E over 5 years
34.17
3
Minimum P/E over 5 years
19.5
4
Earning per share (last 12 months)
1.45 USD
Maximum value
1
x
4
=
96.89 CHF
Fair value
2
x
4
=
43.92 CHF
Minimum value
3
x
4
=
25.06 CHF
Microchip Technology Inc price metrics
9.05
Annual return (geometric mean)
44.03
Risk (standard deviation) of returns
β
1.64
Beta (volatility compared to market)