Stock fact sheet · data as of
Microchip Technology Incorporated (MCHP): fair value, margin of safety and Wheel Score
Ticker symbol MCHP · Technology · Semiconductors · United States · Growth
Is MCHP undervalued?
Microchip Technology Incorporated (MCHP) closed at 75.34 on 5 Nov 2026, 234% above the GLS average fair value of 22.56. 9 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: GLS Growth gives 2.43 while 10 Cap gives 45.42. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, MCHP is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 9, growth score 34, out of 100).
Nine valuation models for MCHP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 9.93 | -87% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.91 | -80% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 38.79 | -49% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 16.31 | -78% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.43 | -97% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 45.42 | -40% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 39.25 | -48% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 26.78 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 9.23 | -88% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.23 | -114% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 110.50 | +47% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health MCHP scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.4 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 1.7%, ROE 3.1%, ROA 1.4% - with debt at 0.86 times equity and a free-cash-flow yield of 2.7%.
The dividend yield is 2.42% at a payout ratio of 243%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Semiconductor Products 97%, Technology Licensing 3% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 9/10 and Congressional trading 6/10 on the GLS smart-money scales; the last recorded Congressional buy was on 11 Sep 2026.
| Piotroski F-score | 7 / 9 | ROIC | 1.7% |
|---|---|---|---|
| GLS Moat | 4.4 / 10 | ROE | 3.1% |
| Debt / equity | 0.86 | ROA | 1.4% |
| Free-cash-flow yield | 2.7% | Payout ratio | 243% |
| Institutions | 10 / 10 | Insiders · Congress | 9 · 6 / 10 |
Wheel Score 41: Weak
MCHP scores 41 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 234% above our fair value; and filter 5, can repay its debt - 5.7 years to repay its debt (over 3), and the parts are thin too - value weak, premium strong, moat fair, health good, red flags good, option trading strong, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 64% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. The option chain is deep: 277,900 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 14.9M shares a day on a market cap of $40.9B, with a beta of 1.83 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 234% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 5.7 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 234% above fair value | |
| Premium | Strong | implied volatility 64% | |
| Moat | Fair | moat 4.4/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Strong | 8,919 contracts a day, 277,900 open interest | |
| Stability | Good | beta 1.83, $40.9B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Microchip Technology Incorporated reports earnings on 5 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Microchip Technology Incorporated by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| STM STMicroelectronics N.V. | 45.60 | 14.88 | -206% | 42Weak | $40.8B |
| UMC United Microelectronics Corporation | 16.06 | 13.65 | -18% | 43Weak | $40.1B |
| TER Teradyne, Inc. | 250.99 | 145.98 | -72% | 44Weak | $39.2B |
| ALAB Astera Labs, Inc. Common Stock | 223.27 | 79.52 | -181% | 29Weak | $38.7B |
| ON ON Semiconductor Corporation | 71.24 | 48.86 | -46% | 42Weak | $27.7B |
| MPWR Monolithic Power Systems, Inc. | 1,261.08 | 467.50 | -170% | 41Weak | $61.5B |
| TEL TE Connectivity plc | 220.22 | 216.76 | -2% | 48Weak | $63.8B |
| CRDO Credo Technology Group Holding Ltd | 136.50 | 83.65 | -63% | 24Weak | $25.7B |
| NXPI NXP Semiconductors N.V. | 265.01 | 178.55 | -48% | 45Weak | $66.8B |
| Q Qnity Electronics, Inc. | 118.78 | 44.98 | -164% | 40Weak | $24.8B |
| GFS GLOBALFOUNDRIES Inc. | 40.34 | 26.95 | -50% | 39Weak | $22.1B |
| ENTG Entegris, Inc. | 142.87 | 55.00 | -160% | 39Weak | $21.8B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MCHP
Is MCHP undervalued right now?
No: at 75.34 the stock trades 234% above the GLS average fair value of 22.56 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of MCHP and what does it mean?
MCHP scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 3, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for MCHP?
22.56 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Microchip Technology Incorporated report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does MCHP have listed options, and how liquid are they?
Yes. The nightly snapshot found 582 listed contracts with 277,900 open interest across all expiries and implied volatility of 64% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.