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Microchip Technology (XSWX:MCHP) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Microchip Technology Forward PE Ratio Related Terms
Microchip Technology Forward PE Ratio Historical Data
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The historical data trend for Microchip Technology's Forward PE Ratio 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.
Microchip Technology Forward PE Ratio Chart
Microchip Technology Annual Data
Trend
2026-03
Forward PE Ratio
25.17
Microchip Technology Quarterly Data
2026-03
Forward PE Ratio
25.17
XSWX:MCHP vs CRDO, GFS, CBRS: Forward PE Ratio Comparison
For the Semiconductors subindustry, Microchip Technology's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Microchip Technology (XSWX:MCHP) has a Forward PE Ratio of 28.73 as of Jul. 14, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Microchip Technology and its competitors. According to the industry distribution chart, Microchip Technology ranks #214 out of 546 companies in the Semiconductors industry, placing it in the top 39.2%.
Is Microchip Technology's Forward PE Ratio too high?
Microchip Technology's current Forward PE Ratio is 28.73. The Semiconductors industry median Forward PE Ratio is 34.01. Microchip Technology's value of 28.73 is 15.5% below this industry median. Based on the distribution chart, Microchip Technology ranks #214 out of 546 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Microchip Technology has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Forward PE Ratio compare to CRDO and GFS?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #214 out of 546 companies for Forward PE Ratio. This puts Microchip Technology in the upper half of its industry. The industry median Forward PE Ratio is 34.01. Microchip Technology's value of 28.73 is 15.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Semiconductors company?
The median Forward PE Ratio among Semiconductors companies is 34.01, based on 546 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Forward PE Ratio of 28.73 is 15.5% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median Forward PE Ratio is 34.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Forward PE Ratio is 28.73. 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 CHF46.14, compared to a current price of CHF70.11 — trading 52% above its estimated fair value. The current Forward PE Ratio is 28.73 and 15.5% below the Semiconductors industry median of 34.01. Microchip Technology's overall GF Score™ is 48/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current Forward PE Ratio is 28.73 as of Jul. 14, 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 CHF70.11 is trading 52% above its estimated GF Value™ of CHF46.14.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for XSWX:MCHP:
Forward PE Ratio: 28.73
GF Value™: CHF46.14 vs. price of CHF70.11 (52% above fair value)
Industry Position: 15.5% below the Semiconductors median (#214 of 546)
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.
48GF Score
Get the complete analysis for XSWX:MCHP
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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