This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Microchip Technology's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $15.517. Microchip Technology's 10-Year median PS Ratio is 5.2755. Therefore, the Median PS Value for today is $81.86.
As of today (2024-04-19), Microchip Technology's share price is $81.68. Microchip Technology's Median PS Value is $81.86. Therefore, Microchip Technology's Price to Median PS Value for today is 1.00.
The historical rank and industry rank for Microchip Technology's Median PS Value or its related term are showing as below:
MCHP'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.65 Med: 0.95 Max: 1.53
Current: 1
During the past 13 years, the highest Price to Median PS Value of Microchip Technology was 1.53. The lowest was 0.65. And the median was 0.95.
MCHP's Price-to-Median-PS-Value is ranked better than 67.32% of 511
companies
in the Semiconductors industry
Industry Median: 1.43
vs MCHP: 1.00
Microchip Technology Median PS Value Historical Data
The historical data trend for Microchip Technology's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, Microchip Technology's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microchip Technology Price-to-Median-PS-Value Distribution
For the Semiconductors industry and Technology sector, Microchip Technology's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Price-to-Median-PS-Value falls into.
Microchip Technology Median PS Value Calculation
Microchip Technology's Median PS Value for today is calculated as
10-Year Median PS Ratio is 5.2755.
Microchip Technology's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $15.517.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microchip Technology (NAS:MCHP) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Microchip Technology's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
81.68
/
81.86
=
1.00
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microchip Technology Median PS Value Related Terms
Thank you for viewing the detailed overview of Microchip Technology's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Microchip Technology (Microchip Technology) Business Description
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
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