Microchip Technology Incorporated (MCHP) Company Bio
Microchip Technology develops, manufactures, and sells semiconductor products for various embedded control applications. The company was founded in 1989 and is based in Chandler, Arizona.
MCHP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Microchip Technology Inc. To summarize, we found that Microchip Technology Inc ranked in the 47th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 5.5%. As for the metrics that stood out in our discounted cash flow analysis of Microchip Technology Inc, consider:
The company's balance sheet shows it gets 75% of its capital from equity, and 25% of its capital from debt. Its equity weight surpasses that of merely 22.42% of free cash flow generating stocks in the Technology sector.
Microchip Technology Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MCHP, try MSI, CYBR, OSTK, ENPH, and JCS.
Quality comes at a price, but I still believe that overpaying does limit some of your upside. Like many (if not most) other quality chip stocks, I thought Analog Devices (ADI) shares had come too far too fast, and my opinion of the valuation back in May (around the time...
Stephen Simpson, CFA on Seeking Alpha | August 24, 2020
GOLETA, Calif.--(BUSINESS WIRE)-- #AECQ101--Transphorm, Inc. (“Transphorm” or the “Company”) (OTCQB: TGAN), a pioneer in the development and manufacturing of high reliability, high performance gallium nitride (GaN) power semiconductors, today announced financial results for the second quarter ended June 30, 2020. First Half 2020 & Recent Business Highlights Introduced SuperGaN™ Power FETs with launch of Gen IV GaN platform Partnered with Microchip Technology Inc. to combine high reliability GaN with a