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Microchip TechnologyXSWX:MCHP -4.20%51 Debt-to-EBITDA is 3.57 as of Mar. 2026, which is 20% below its 10-year median of 4.44. GuruFocus rates XSWX:MCHP with a GF Score™ of 51/100 and a GF Value™ of CHF46.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 722 Semiconductors companies, Microchip Technology ranks worse than 78.12% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Microchip Technology's Debt-to-EBITDA or its related term are showing as below:
XSWX:MCHP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.58 Med: 4.44 Max: 6.58
Current: 4.7
During the past 13 years, the highest Debt-to-EBITDA Ratio of Microchip Technology was 6.58. The lowest was 1.58. And the median was 4.44.
XSWX:MCHP's Debt-to-EBITDA is ranked worse than 78.12% of 722
companies
in the Semiconductors industry
Industry Median: 1.445
vs XSWX:MCHP: 4.70
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Microchip Technology Debt-to-EBITDA Related Terms
Microchip Technology Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Microchip Technology's Debt-to-EBITDA 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.
XSWX:MCHP vs CRDO, GFS, CBRS: Debt-to-EBITDA Comparison
For the Semiconductors subindustry, Microchip Technology's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Microchip Technology (XSWX:MCHP) has a Debt-to-EBITDA of 3.57 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Microchip Technology. This is 20% below median its historical median of 4.44. Over the past decade, Microchip Technology's Debt-to-EBITDA has ranged from 1.58 to 6.58. According to the industry distribution chart, Microchip Technology ranks #564 out of 722 companies in the Semiconductors industry, placing it in the top 78.1%.
Is Microchip Technology's Debt-to-EBITDA too high?
Microchip Technology's current Debt-to-EBITDA of 3.57 is 20% below median its 10-year median of 4.44. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 6.58. The Semiconductors industry median Debt-to-EBITDA is 1.45. Microchip Technology's value of 3.57 is 147.1% above this industry median. Based on the distribution chart, Microchip Technology ranks #564 out of 722 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Microchip Technology has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Debt-to-EBITDA compare to CRDO and GFS?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #564 out of 722 companies for Debt-to-EBITDA. This places Microchip Technology in the lower half of its industry. The industry median Debt-to-EBITDA is 1.45. Microchip Technology's value of 3.57 is 147.1% above this benchmark. Historically, Microchip Technology's own Debt-to-EBITDA has ranged from 1.58 to 6.58 over the past decade. While the company's 10-year median is 4.44 vs. the industry median of 1.45, Microchip Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Semiconductors company?
The median Debt-to-EBITDA among Semiconductors companies is 1.45, based on 722 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Debt-to-EBITDA of 3.57 is 147.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Microchip Technology. For the Semiconductors industry, the median Debt-to-EBITDA is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Debt-to-EBITDA is 3.57, which is 20% below median its own 10-year median of 4.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microchip Technology stock overvalued right now?
Based on GuruFocus' analysis, Microchip Technology (XSWX:MCHP) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF46.40, compared to a current price of CHF64.60 — trading 39.2% above its estimated fair value. The current Debt-to-EBITDA is 3.57, which is 20% below median its 10-year median of 4.44 and 147.1% above the Semiconductors industry median of 1.45. Microchip Technology's overall GF Score™ is 51/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current Debt-to-EBITDA is 3.57 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microchip Technology (XSWX:MCHP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of CHF64.60 is trading 39.2% above its estimated GF Value™ of CHF46.40.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for XSWX:MCHP:
Debt-to-EBITDA: 3.57 (20% below median its 10-year median of 4.44)
GF Value™: CHF46.40 vs. price of CHF64.60 (39.2% above fair value)
Industry Position: 147.1% above the Semiconductors median (#564 of 722)
No single metric tells the full story. See the XSWX:MCHP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
51GF Score
Get the complete analysis for XSWX:MCHP
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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