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Monolithic Power Systems (NAS:MPWR) GF Value Rank

: 6 (As of Today)
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Monolithic Power Systems has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Semiconductors subindustry, Monolithic Power Systems's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.

Monolithic Power Systems GF Value Rank Distribution

For the Semiconductors industry and Technology sector, Monolithic Power Systems's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Monolithic Power Systems's GF Value Rank falls into.

Monolithic Power Systems GF Value Rank Related Terms

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Monolithic Power Systems (NAS:MPWR) Business Description

Traded in Other Exchanges
5808 Lake Washington Boulevard NE, Kirkland, WA, USA, 98033
Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm's mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.
Eugen J Elmiger director BUEELHADE 3A, SEMPACH STADT V8 6204
Jeff Zhou director 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Carintia Martinez director 5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033
Theodore Blegen officer: CFO 5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033
Maurice Sciammas officer: Sr. V.P.of Sales and Marketing 79 GREAT OAKS BLVD, SAN JOSE CA 95119
Meera Rao officer: VP of Finance, Corp Controller 1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089
Rick Neely officer: Sr. VP and CFO 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Paul Ueunten officer: Sr. V.P. Design Engineering 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Douglas M Mcburnie director 233 S. HILLVIEW DRIVE, MILPITAS CA 95035
Smith- Pilkington Karen A director 343 STATE STREET, ROCHESTER NY 146500211
Adriana Chiocchi officer: Senior V.P. and CLO C/O MONOLITHIC POWER SYSTEMS, 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Jones Jim J Iii director 950 TOWER LANE, SUITE 700, FOSTER CITY CA 94404
Saria Tseng officer: VP and General Counsel 79 GREAT OAKS BLVD, SAN JOSE CA 95119