What is Microchip Technology Inc worth?
With the base-case assumptions below, a discounted cash flow model on Microchip Technology Inc's reported free cash flow gives $8.98 per share. The share price was $78.69 on September 25, 2026, 776% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -8.0% | 10.0% | $2.21 | -97% |
| Base | -3.0% | 9.0% | $8.98 | -89% |
| Bull | 2.0% | 8.0% | $21.60 | -73% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $13.56 | $14.91 | $16.57 | $18.64 | $21.31 |
| 8.0% | $10.17 | $11.05 | $12.09 | $13.34 | $14.86 |
| 9.0% | $7.68 | $8.28 | $8.98 | $9.79 | $10.75 |
| 10.0% | $5.78 | $6.20 | $6.69 | $7.24 | $7.88 |
| 11.0% | $4.27 | $4.58 | $4.93 | $5.32 | $5.77 |
Where the presets come from
Base: years 1 to 5 grow at Microchip Technology Inc's revenue growth rate over the last 5 fiscal years (-2.8% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions