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Microchip TechnologyXSWX:MCHP 52 Earnings Yield (Joel Greenblatt) % is 1.21% as of Mar. 2026, which is 46% below its 10-year median of 2.25. GuruFocus rates XSWX:MCHP with a GF Score™ of 52/100 and a GF Value™ of CHF46.99 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,022 Semiconductors companies, Microchip Technology ranks worse than 54.99% on this metric.
Microchip Technology's Enterprise Value for the quarter that ended in Mar. 2026 was CHF31,175 Mil.
Microchip Technology's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was CHF388 Mil. Microchip Technology's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 1.21%.
The historical rank and industry rank for Microchip Technology's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
XSWX:MCHP'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.11 Med: 2.25 Max: 7.54
Current: 1.07
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Microchip Technology was 7.54%. The lowest was 0.11%. And the median was 2.25%.
XSWX:MCHP's Earnings Yield (Joel Greenblatt) % is ranked worse than 54.99% of 1022
companies
in the Semiconductors industry
Industry Median: 1.42
vs XSWX:MCHP: 1.07
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Microchip Technology's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was -13.42%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Microchip Technology Earnings Yield (Joel Greenblatt) % Related Terms
Microchip Technology Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Microchip Technology's Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Microchip Technologys Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2026 is calculated as
Microchip Technology's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF388 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 1.21% mean?
Microchip Technology (XSWX:MCHP) has a Earnings Yield (Joel Greenblatt) % of 1.21% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Microchip Technology and its competitors. This is 46% below median its historical median of 2.25. Over the past decade, Microchip Technology's Earnings Yield (Joel Greenblatt) % has ranged from 0.11 to 7.54. According to the industry distribution chart, Microchip Technology ranks #562 out of 1022 companies in the Semiconductors industry, placing it in the top 55%.
Is Microchip Technology's Earnings Yield (Joel Greenblatt) % too high?
Microchip Technology's current Earnings Yield (Joel Greenblatt) % of 1.21% is 46% below median its 10-year median of 2.25. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 7.54. The Semiconductors industry median Earnings Yield (Joel Greenblatt) % is 1.42. Microchip Technology's value of 1.21% is 14.8% below this industry median. Based on the distribution chart, Microchip Technology ranks #562 out of 1022 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Microchip Technology has a GF Score™ of 52/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Earnings Yield (Joel Greenblatt) % compare to CBRS and CRDO?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #562 out of 1022 companies for Earnings Yield (Joel Greenblatt) %. This places Microchip Technology in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 1.42. Microchip Technology's value of 1.21% is 14.8% below this benchmark. Historically, Microchip Technology's own Earnings Yield (Joel Greenblatt) % has ranged from 0.11 to 7.54 over the past decade. While the company's 10-year median is 2.25 vs. the industry median of 1.42, Microchip Technology has consistently been below 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 Earnings Yield (Joel Greenblatt) % for a Semiconductors company?
The median Earnings Yield (Joel Greenblatt) % among Semiconductors companies is 1.42, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Earnings Yield (Joel Greenblatt) % of 1.21% is 14.8% below 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median Earnings Yield (Joel Greenblatt) % is 1.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Earnings Yield (Joel Greenblatt) % is 1.21%, which is 46% below median its own 10-year median of 2.25. 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 Modestly Overvalued. The stock's GF Value™ is CHF46.99, compared to a current price of CHF60.21 — trading 28.1% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 1.21%, which is 46% below median its 10-year median of 2.25 and 14.8% below the Semiconductors industry median of 1.42. Microchip Technology's overall GF Score™ is 52/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current Earnings Yield (Joel Greenblatt) % is 1.21% 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 CHF60.21 is trading 28.1% above its estimated GF Value™ of CHF46.99.
GuruFocus considers Microchip Technology to be Modestly Overvalued.
Key valuation signals for XSWX:MCHP:
Earnings Yield (Joel Greenblatt) %: 1.21% (46% below median its 10-year median of 2.25)
GF Value™: CHF46.99 vs. price of CHF60.21 (28.1% above fair value)
Industry Position: 14.8% below the Semiconductors median (#562 of 1022)
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.
52GF Score
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Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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