NASDAQ · MCHP

Microchip Technology Incorporated

Technology · Semiconductors

$73.27▲ 3.46% ($2.45)at close

After hours$73.13▼ 0.19%7:58 PM ET

52-week

$48.52$105.91

What the market price implies · Reverse DCF

To support a price of $73.27, this model requires revenue to grow by 29.38%/yr over the next 10 years, compounded annually.

Historical revenue grew by -8.83%/yr over the past 4 years. The required annual growth rate is 38.20 percentage points higher.

Selected forecast · Base scenario

4.19%/yr · actual 10-year annualized revenue growth

Year 1 growth: 6.56%

Market-implied · Base operating assumptions + edited margins

29.38%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$73.27

Estimated value / share

$7.32

Base scenario

This estimate is 90.01% below the price used.

USD · TTM ending 2026-06-30

Latest quarterly growth differs materially from the latest annual pace. It remains an observed growth input; review whether acceleration or a change in the business explains it.

Year 1 growth 6.56% · Ending margin 15.52% · Discount rate 13.23%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 18, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 19, 2026, 3:27 AM UTC · provider

Why this method?

FCFF is positive, but the series is too unstable to anchor a direct cash-flow CAGR and the business still fails the steady-state comparability checks. Use a revenue-and-margin transition model instead of normalizing and compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 25 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 63.0%.

Do you have 5+ years of positive FCFF history? 25 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Revenue is still growing 38.0%, above the 15.0% maturity threshold, so a steady-state FCFF model would lean too heavily on a business still scaling.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: 7.66%Revenue (TTM): 20.93%FCF (TTM): 53.1%P/FCF: 88th pct

What changed

The stock rose 7.66% over the last year. Revenue grew 20.93% over the trailing twelve months. Operating margin moved from 2.58% to 15.52%. Free cash flow grew 53.1% over the trailing twelve months.

What the market seems to be pricing

The stock has moved higher against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at 15.52%. A decisive move in revenue — currently up 20.93% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia.

CEOSteve Sanghi

SectorTechnology

IndustrySemiconductors

Employees17,900

IPO dateMar 19, 1993

https://www.microchip.com

Market multiples

Forward P/E—

EV/EBITDA28.76

Enterprise value$40.28B

Stock splits

Oct 13, 2021↑ Forward

Every 1 shares became 2

+100%

May 9, 2002↑ Forward

Every 2 shares became 3

+50%

Sep 27, 2000↑ Forward

Every 2 shares became 3

+50%

Feb 8, 2000↑ Forward

Every 2 shares became 3

+50%

Jan 7, 1997↑ Forward

Every 2 shares became 3

+50%

Nov 9, 1994↑ Forward

Every 2 shares became 3

+50%

Apr 5, 1994↑ Forward

Every 2 shares became 3

+50%

Sep 14, 1993↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth38.05%

Gross margin (FY2026)57.73%▲1.7ppvs FY2025

Operating margin (FY2026)10.4%▲3.7ppvs FY2025

ROE6.77%▲3.8ppvs FY2026

Analyst consensus

RatingBuy

Target price$110.50▲50.81%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 5, 2026

Q4 FY26 · EPS est $0.92 · Revenue est $1.61B

View

Dividends

$1.82/shareQuarterlyDividend Achiever · 23yrStretched

MCHP pays a dividend with a 2.48% dividend yield, 23 consecutive years of growth, growing at 17.74% annually, covered 0.8× by free cash flow.

Dividend Yield

2.48%

Annual Div / Share

$1.82

5yr CAGR

+17.74%

Doubles every ~4.2yr

Payout Ratio

243.36%

Stretched

Dividend Growth Rate

3yr CAGR

+7.16%

5yr CAGR

+17.74%

10yr CAGR

+9.74%

Dividend Safety

2/10Stretched

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$1.82+0.0%

2025$1.82+1.4%

2024$1.80+21.4%

2023$1.48+39.3%

2022$1.06+32.0%

2021$0.80+9.5%

2020$0.73+0.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$25/yr

$2/mo

In 5 yrs

$44/yr+76%

$4/mo

In 10 yrs

$77/yr+211%

$6/mo

Today	In 5 yrs	In 10 yrs
$25/yr $2/mo	$44/yr+76% $4/mo	$77/yr+211% $6/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 2.48% → 7.71% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

MCHP has raised its dividend for 23 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Strong dividend growth rate

The 5-year CAGR of 17.74% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

High payout ratio

With 243.36% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.

Dividend exceeds free cash flow

Free cash flow covers only 0.80× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.

NASDAQ · MCHP

Microchip Technology Incorporated

Technology · Semiconductors

$73.27▲ 3.46% ($2.45)at close

After hours$73.13▼ 0.19%7:58 PM ET

52-week

$48.52$105.91

What the market price implies · Reverse DCF

To support a price of $73.27, this model requires revenue to grow by 29.38%/yr over the next 10 years, compounded annually.

Historical revenue grew by -8.83%/yr over the past 4 years. The required annual growth rate is 38.20 percentage points higher.

Selected forecast · Base scenario

4.19%/yr · actual 10-year annualized revenue growth

Year 1 growth: 6.56%

Market-implied · Base operating assumptions + edited margins

29.38%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$73.27

Estimated value / share

$7.32

Base scenario

This estimate is 90.01% below the price used.

USD · TTM ending 2026-06-30

Latest quarterly growth differs materially from the latest annual pace. It remains an observed growth input; review whether acceleration or a change in the business explains it.

Year 1 growth 6.56% · Ending margin 15.52% · Discount rate 13.23%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 18, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 19, 2026, 3:27 AM UTC · provider

Why this method?

Is FCFF positive and has it been for 3+ consecutive years? 25 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 63.0%.

Do you have 5+ years of positive FCFF history? 25 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: 7.66%Revenue (TTM): 20.93%FCF (TTM): 53.1%P/FCF: 88th pct

What changed

The stock rose 7.66% over the last year. Revenue grew 20.93% over the trailing twelve months. Operating margin moved from 2.58% to 15.52%. Free cash flow grew 53.1% over the trailing twelve months.

What the market seems to be pricing

What would invalidate this read

Operating margin currently stands at 15.52%. A decisive move in revenue — currently up 20.93% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia.

CEOSteve Sanghi

SectorTechnology

IndustrySemiconductors

Employees17,900

IPO dateMar 19, 1993

https://www.microchip.com

Market multiples

Forward P/E—

EV/EBITDA28.76

Enterprise value$40.28B

Stock splits

Oct 13, 2021↑ Forward

Every 1 shares became 2

+100%

May 9, 2002↑ Forward

Every 2 shares became 3

+50%

Sep 27, 2000↑ Forward

Every 2 shares became 3

+50%

Feb 8, 2000↑ Forward

Every 2 shares became 3

+50%

Jan 7, 1997↑ Forward

Every 2 shares became 3

+50%

Nov 9, 1994↑ Forward

Every 2 shares became 3

+50%

Apr 5, 1994↑ Forward

Every 2 shares became 3

+50%

Sep 14, 1993↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth38.05%

Gross margin (FY2026)57.73%▲1.7ppvs FY2025

Operating margin (FY2026)10.4%▲3.7ppvs FY2025

ROE6.77%▲3.8ppvs FY2026

Analyst consensus

RatingBuy

Target price$110.50▲50.81%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 5, 2026

Q4 FY26 · EPS est $0.92 · Revenue est $1.61B

View

Dividends

$1.82/shareQuarterlyDividend Achiever · 23yrStretched

MCHP pays a dividend with a 2.48% dividend yield, 23 consecutive years of growth, growing at 17.74% annually, covered 0.8× by free cash flow.

Dividend Yield

2.48%

Annual Div / Share

$1.82

5yr CAGR

+17.74%

Doubles every ~4.2yr

Payout Ratio

243.36%

Stretched

Dividend Growth Rate

3yr CAGR

+7.16%

5yr CAGR

+17.74%

10yr CAGR

+9.74%

Dividend Safety

2/10Stretched

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$1.82+0.0%

2025$1.82+1.4%

2024$1.80+21.4%

2023$1.48+39.3%

2022$1.06+32.0%

2021$0.80+9.5%

2020$0.73+0.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$25/yr

$2/mo

In 5 yrs

$44/yr+76%

$4/mo

In 10 yrs

$77/yr+211%

$6/mo

Today	In 5 yrs	In 10 yrs
$25/yr $2/mo	$44/yr+76% $4/mo	$77/yr+211% $6/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 2.48% → 7.71% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

MCHP has raised its dividend for 23 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Strong dividend growth rate

The 5-year CAGR of 17.74% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

High payout ratio

With 243.36% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.

Dividend exceeds free cash flow

Free cash flow covers only 0.80× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.