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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Microchip TechnologyXSWX:MCHP -2.91%48 5-Year Yield-on-Cost % is 2.62 as of Jul. 14, 2026, which is 41% below its 10-year median of 4.47. GuruFocus rates XSWX:MCHP with a GF Score™ of 48/100 and a GF Value™ of CHF46.14 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 533 Semiconductors companies, Microchip Technology ranks better than 88.37% on this metric.
Microchip Technology's yield on cost for the quarter that ended in Mar. 2026 was 2.62.
The historical rank and industry rank for Microchip Technology's 5-Year Yield-on-Cost % or its related term are showing as below:
XSWX:MCHP'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.41 Med: 4.47 Max: 13.27
Current: 2.62
During the past 13 years, Microchip Technology's highest Yield on Cost was 13.27. The lowest was 2.41. And the median was 4.47.
XSWX:MCHP's 5-Year Yield-on-Cost % is ranked better than 88.37% of 533
companies
in the Semiconductors industry
Industry Median: 1
vs XSWX:MCHP: 2.62
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Microchip Technology 5-Year Yield-on-Cost % Related Terms
XSWX:MCHP vs CRDO, GFS, CBRS: 5-Year Yield-on-Cost % Comparison
For the Semiconductors subindustry, Microchip Technology's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Microchip Technology (XSWX:MCHP) has a 5-Year Yield-on-Cost % of 2.62 as of Jul. 14, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Microchip Technology and its competitors. This is 41% below median its historical median of 4.47. Over the past decade, Microchip Technology's 5-Year Yield-on-Cost % has ranged from 2.41 to 13.27. According to the industry distribution chart, Microchip Technology ranks #62 out of 533 companies in the Semiconductors industry, placing it in the top 11.6%.
Is Microchip Technology's 5-Year Yield-on-Cost % too high?
Microchip Technology's current 5-Year Yield-on-Cost % of 2.62 is 41% below median its 10-year median of 4.47. Over the past 10 years, this metric has ranged from a low of 2.41 to a high of 13.27. The Semiconductors industry median 5-Year Yield-on-Cost % is 1.00. Microchip Technology's value of 2.62 is 162% above this industry median. Based on the distribution chart, Microchip Technology ranks #62 out of 533 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. 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 5-Year Yield-on-Cost % compare to CRDO and GFS?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #62 out of 533 companies for 5-Year Yield-on-Cost %. This places Microchip Technology in the top 12% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 1.00. Microchip Technology's value of 2.62 is 162% above this benchmark. Historically, Microchip Technology's own 5-Year Yield-on-Cost % has ranged from 2.41 to 13.27 over the past decade. While the company's 10-year median is 4.47 vs. the industry median of 1.00, Microchip Technology has consistently been above 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 5-Year Yield-on-Cost % for a Semiconductors company?
The median 5-Year Yield-on-Cost % among Semiconductors companies is 1.00, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current 5-Year Yield-on-Cost % of 2.62 is 162% above 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median 5-Year Yield-on-Cost % is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current 5-Year Yield-on-Cost % is 2.62, which is 41% below median its own 10-year median of 4.47. 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 5-Year Yield-on-Cost % is 2.62, which is 41% below median its 10-year median of 4.47 and 162% above the Semiconductors industry median of 1.00. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current 5-Year Yield-on-Cost % is 2.62 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:
5-Year Yield-on-Cost %: 2.62 (41% below median its 10-year median of 4.47)
GF Value™: CHF46.14 vs. price of CHF70.11 (52% above fair value)
Industry Position: 162% above the Semiconductors median (#62 of 533)
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
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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