Stock fact sheet · data as of
Monolithic Power Systems, Inc. (MPWR): fair value, margin of safety and Wheel Score
Ticker symbol MPWR · Technology · Semiconductors · United States · Growth
Is MPWR undervalued?
MPWR closed at 1,261.08 on 5 Nov 2026, more than 30% above the GLS average fair value of 467.50. Only 0 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.
The 9 models disagree widely: DDM gives 111.24 while GLS Growth gives 1,112.93. 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, MPWR is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 6, growth score 84, out of 100).
Nine valuation models for MPWR
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 | 236.73 | -81% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 176.45 | -86% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 1,039.85 | -18% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 454.48 | -64% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,112.93 | -12% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 383.52 | -70% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 490.30 | -61% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 111.24 | -91% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 201.99 | -84% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 31.18 | -98% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 1,810.50 | +44% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - MPWR passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.7 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 17.3%, ROE 17.4%, ROA 14.7% - with debt at 0.01 times equity and a free-cash-flow yield of 1.0%.
The dividend yield is 0.60% with a payout ratio of 40% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from DC To DC Products 99%, Lighting Control Products 1% (quarter Q3 FY2024).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 17.3% |
|---|---|---|---|
| GLS Moat | 8.7 / 10 | ROE | 17.4% |
| Debt / equity | 0.01 | ROA | 14.7% |
| Free-cash-flow yield | 1.0% | Payout ratio | 40% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 41: Weak
MPWR scores 41 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 170% above our fair value; and filter 4, financially healthy - Piotroski 5/9 (under 6), and the parts are thin too - value weak, premium strong, moat strong, health fair, red flags good, option trading fair, 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 61% 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. Chain open interest is 10,763 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.2M shares a day on a market cap of $61.5B, with a beta of 1.72 - 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 170% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 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 | 170% above fair value | |
| Premium | Strong | implied volatility 61% | |
| Moat | Strong | moat 8.7/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Fair | 1,840 contracts a day, 10,763 open interest | |
| Stability | Good | beta 1.72, $61.5B 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
No upcoming earnings date is recorded for MPWR in the nightly calendar.
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 Monolithic Power Systems, Inc. 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 |
|---|---|---|---|---|---|
| TEL TE Connectivity plc | 220.22 | 216.76 | -2% | 48Weak | $63.8B |
| NXPI NXP Semiconductors N.V. | 265.01 | 178.55 | -48% | 45Weak | $66.8B |
| ASX ASE Technology Holding Co., Ltd. | 37.51 | 18.48 | -103% | 43Weak | $82.8B |
| MCHP Microchip Technology Incorporated | 75.34 | 22.56 | -234% | 41Weak | $40.9B |
| 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 |
| MRVL Marvell Technology, Inc. | 159.80 | 71.58 | -123% | 36Weak | $139.9B |
| CRDO Credo Technology Group Holding Ltd | 136.50 | 83.65 | -63% | 24Weak | $25.7B |
| Q Qnity Electronics, Inc. | 118.78 | 44.98 | -164% | 40Weak | $24.8B |
Scan the whole market the same way
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 MPWR
Is MPWR undervalued right now?
No: at 1,261.08 the stock trades 170% above the GLS average fair value of 467.50 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of MPWR and what does it mean?
MPWR scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 3, 4. 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 MPWR?
467.50 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 Monolithic Power Systems, Inc. report earnings next?
No upcoming earnings date is recorded for MPWR in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does MPWR have listed options, and how liquid are they?
Yes. The nightly snapshot found 436 listed contracts with 10,763 open interest across all expiries and implied volatility of 61% 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.