GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Microchip Technology Inc (NAS:MCHP) » Definitions » PEG Ratio

Microchip Technology (Microchip Technology) PEG Ratio

: 0.99 (As of Today)
View and export this data going back to 1993. Start your Free Trial
PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Microchip Technology's PE Ratio without NRI is 17.35. Microchip Technology's 5-Year EBITDA growth rate is 17.60%. Therefore, Microchip Technology's PEG Ratio for today is 0.99.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Microchip Technology's PEG Ratio or its related term are showing as below:

MCHP' s PEG Ratio Range Over the Past 10 Years
Min: 0.65   Med: 2.6   Max: 19.38
Current: 0.99


During the past 13 years, Microchip Technology's highest PEG Ratio was 19.38. The lowest was 0.65. And the median was 2.60.


MCHP's PEG Ratio is ranked better than
66.84% of 386 companies
in the Semiconductors industry
Industry Median: 1.605 vs MCHP: 0.99

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Microchip Technology PEG Ratio Historical Data

The historical data trend for Microchip Technology's PEG 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.

* Premium members only.

Microchip Technology Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
PEG Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.91 1.08 2.95 2.05 1.21

Microchip Technology Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.25 1.21 0.92 0.70 0.84

Competitive Comparison

For the Semiconductors subindustry, Microchip Technology's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution

For the Semiconductors industry and Technology sector, Microchip Technology's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Microchip Technology's PEG Ratio falls into.



Microchip Technology PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Microchip Technology's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=17.348578491965/17.60
=0.99

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Microchip Technology  (NAS:MCHP) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Microchip Technology PEG Ratio Related Terms

Thank you for viewing the detailed overview of Microchip Technology's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Microchip Technology (Microchip Technology) Business Description

Address
2355 West Chandler Boulevard, Chandler, AZ, USA, 85224-6199
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.
Executives
James Eric Bjornholt officer: VP and CFO MICROCHIP TECHNOLOGY INCORPORATED, 2355 WEST CHANDLER BOULEVARD, CHANDLER AZ 85224-6199
Karlton D Johnson director C/O MICROCHIP TECHNOLOGY INCORPORATED, 2355 W. CHANDLER BOULEVARD, CHANDLER AZ 85224-6199
Matthew W Chapman director 400 SW SIXTH AVENUE, SUITE 200, PORTLAND OR 97204
Robert A. Rango director 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Richard J Simoncic officer: VP, Microperipheral Prod Div 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Mitchell R Little officer: VP, WW Sales and Appns. 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Ganesh Moorthy officer: VP, MCU and Auto. Div. MICROCHIP, 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Steve Sanghi director, officer: President, CEO, Chairman 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Wade F Meyercord director 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Stephen V Drehobl officer: VP, Security, MCU & Tech Div.
L B Day director 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Karen Marie Rapp director C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Esther Johnson director 8731 S 600 W, CLAYPOOL IN 46510
Hugo Martinez Albert J director 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
David S Lambert officer: VP, Fab Operations 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199