Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Microchip Technology's Enterprise Value is $27,017 Mil.
Microchip Technology's EBIT for the trailing twelve months (TTM) ended in Dec. 2024 was $644 Mil. Therefore, Microchip Technology's EV-to-EBIT ratio for today is 41.96.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Microchip Technology's Enterprise Value is $27,017 Mil.
Microchip Technology's EBITDA for the trailing twelve months (TTM) ended in Dec. 2024 was $1,425 Mil. Therefore, Microchip Technology's EV-to-EBITDA ratio for today is 18.96.
Microchip Technology Enterprise Value Historical Data
The historical data trend for Microchip Technology's Enterprise 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.
Competitive Comparison of Microchip Technology's Enterprise Value
For the Semiconductors subindustry, Microchip Technology's Enterprise Value, along with its competitors' market caps and Enterprise 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's Enterprise Value Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Enterprise Value falls into.
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Microchip Technology's Enterprise Value for the fiscal year that ended in Mar. 2024 is calculated as
* 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) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Microchip Technology's current Enterprise Value is $27,017 Mil.
Microchip Technology's EBIT for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $644 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Microchip Technology's current Enterprise Value is $27,017 Mil.
Microchip Technology's EBITDA for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,425 Mil.
Microchip Technology's current Enterprise Value is $27,017 Mil.
Microchip Technology's Revenue for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,757 Mil.
Microchip Technology's current Enterprise Value is $27,017 Mil.
Microchip Technology's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $970 Mil.
* 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Microchip Technology's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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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