Is Microchip Technology Incorporated (MCHP) Undervalued?
Based on the current stock price of $64.94 and a P/E ratio of 26.05,Microchip Technology Incorporated has a PEG ratio of 2.40.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.40, MCHP appears to be potentially overvalued relative to its growth rate of 10.83%.
Based on a PEG ratio of 1.91 (adjusted for dividends).
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How we analyzed MCHP
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 26.05and dividing it by the annual growth rate of 10.83%.
PEG = 26.05 (P/E) ÷ 10.83 (Growth) = 2.40
Frequently Asked Questions about MCHP
What is the current PEG Ratio for Microchip Technology Incorporated (MCHP)?+
The current PEG Ratio for Microchip Technology Incorporated is 2.40. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is MCHP stock undervalued right now?+
Based on the PEG ratio of 2.40, Microchip Technology Incorporated appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for MCHP?+
The PEGY ratio for Microchip Technology Incorporated is 1.91. This metric accounts for dividend yield (2.80%), providing a more complete valuation picture.