Price to Book Value (P/BV)
since 2005
Calculation
Microchip Technology Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 20, 2022 | 6.27 | = | 66.67 | ÷ | 10.63 | 10.63 | = | 5,894,800 | ÷ | 554,501,300 | |
| May 18, 2021 | 7.30 | = | 71.22 | ÷ | 9.76 | 9.76 | = | 5,337,100 | ÷ | 547,062,818 | |
| May 22, 2020 | 3.86 | = | 43.91 | ÷ | 11.38 | 11.38 | = | 5,585,500 | ÷ | 490,664,994 | |
| May 30, 2019 | 3.66 | = | 40.67 | ÷ | 11.11 | 11.11 | = | 5,287,500 | ÷ | 475,853,016 | |
| May 18, 2018 | 6.65 | = | 46.40 | ÷ | 6.98 | 6.98 | = | 3,279,800 | ÷ | 470,073,406 | |
| May 30, 2017 | 5.79 | = | 41.26 | ÷ | 7.13 | 7.13 | = | 3,270,711 | ÷ | 458,795,754 | |
| May 24, 2016 | 4.99 | = | 24.98 | ÷ | 5.01 | 5.01 | = | 2,150,919 | ÷ | 429,630,446 | |
| May 27, 2015 | 4.80 | = | 24.25 | ÷ | 5.05 | 5.05 | = | 2,044,654 | ÷ | 404,646,450 | |
| May 30, 2014 | 4.46 | = | 23.80 | ÷ | 5.33 | 5.33 | = | 2,135,461 | ÷ | 400,582,258 | |
| May 30, 2013 | 3.80 | = | 18.62 | ÷ | 4.90 | 4.90 | = | 1,933,470 | ÷ | 394,281,914 | |
| May 30, 2012 | 3.04 | = | 15.65 | ÷ | 5.14 | 5.14 | = | 1,990,673 | ÷ | 387,166,440 | |
| May 31, 2011 | 4.16 | = | 19.77 | ÷ | 4.76 | 4.76 | = | 1,812,438 | ÷ | 380,959,308 | |
| Jun 2, 2010 | 3.38 | = | 13.98 | ÷ | 4.13 | 4.13 | = | 1,533,380 | ÷ | 371,085,862 | |
| May 29, 2009 | 3.98 | = | 10.79 | ÷ | 2.71 | 2.71 | = | 990,766 | ÷ | 365,732,020 | |
| May 28, 2008 | 6.64 | = | 18.59 | ÷ | 2.80 | 2.80 | = | 1,036,223 | ÷ | 369,904,994 | |
| May 25, 2007 | 4.27 | = | 19.61 | ÷ | 4.59 | 4.59 | = | 2,004,368 | ÷ | 436,705,086 | |
| May 31, 2006 | 4.26 | = | 17.15 | ÷ | 4.03 | 4.03 | = | 1,726,189 | ÷ | 428,760,436 | |
| May 23, 2005 | 4.20 | = | 14.98 | ÷ | 3.56 | 3.56 | = | 1,485,734 | ÷ | 416,980,188 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Microchip Technology Inc. Annual Report.
The financial data reveals a long-term expansion in both market valuation and book value, though the Price to Book Value (P/BV) ratio exhibits significant volatility over the seventeen-year period. While the share price grew from 14.98 USD in 2005 to 66.67 USD in 2022, and the book value per share (BVPS) increased from 3.56 USD to 10.63 USD, the P/BV ratio fluctuated between a minimum of 3.04 and a maximum of 7.30.
- Valuation Trends and Peaks
- The P/BV ratio experienced several distinct peaks. An initial spike occurred in 2008, where the ratio reached 6.64, driven largely by a sharp contraction in BVPS from 4.59 USD to 2.80 USD. A second peak was observed in 2018 at 6.65, following a steady increase in share price from 2014. The highest valuation multiple was recorded in 2021 at 7.30, coinciding with the period's peak share price of 71.22 USD.
- Book Value Volatility and Impact
- The relationship between BVPS and the P/BV ratio is non-linear. Between 2018 and 2019, a substantial increase in BVPS from 6.98 USD to 11.11 USD led to a sharp correction in the P/BV ratio, which fell from 6.65 to 3.66. This indicates that during this specific interval, the growth in the company's intrinsic book value outpaced the market's price appreciation, resulting in a more conservative valuation multiple.
- Cyclical Valuation Phases
- The data suggests three primary valuation phases. From 2005 to 2012, the P/BV ratio remained relatively suppressed, frequently trading between 3.0 and 4.3. From 2013 to 2018, a period of valuation expansion occurred, with the ratio generally trending upward. The final phase from 2019 to 2022 was characterized by extreme volatility, featuring a rapid drop in 2019 followed by a steep ascent to the historical peak in 2021 before moderating to 6.27 in 2022.
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Comparison to Competitors
Microchip Technology Inc., P/BV, long-term trends, comparison to competitors
| Microchip Technology Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| May 20, 2022 | 6.27 | 2.32 | 2.35 | 7.25 | 10.23 | 1.15 | 40.04 | 10.10 | 3.52 | 1.15 | 24.95 | 7.00 | 11.33 |
| May 18, 2021 | 7.30 | 19.21 | 2.50 | 10.60 | 10.50 | 2.21 | 15.98 | 13.64 | 3.84 | 1.79 | 20.14 | 15.59 | 11.87 |
| May 22, 2020 | 3.86 | 17.77 | 4.22 | 7.63 | 7.40 | 2.84 | 11.83 | 10.55 | 1.45 | 1.50 | 15.49 | 24.00 | 17.02 |
| May 30, 2019 | 3.66 | 20.46 | 3.61 | 6.67 | 5.09 | 3.78 | 8.15 | 6.40 | 1.75 | 1.40 | 10.09 | 19.69 | 13.79 |
| May 18, 2018 | 6.65 | 18.30 | 3.02 | 4.73 | 3.74 | 2.94 | 11.40 | 4.28 | 2.52 | 1.49 | 19.60 | 82.57 | 11.20 |
| May 30, 2017 | 5.79 | 19.87 | 3.22 | 5.94 | 5.28 | 3.08 | 10.50 | 3.82 | 1.96 | 2.51 | 10.51 | 2.56 | 9.89 |
| May 24, 2016 | 4.99 | 31.66 | 4.35 | 4.93 | 3.84 | 2.60 | 17.57 | 2.45 | 1.39 | 1.48 | 3.98 | 3.12 | 7.36 |
| May 27, 2015 | 4.80 | — | 3.72 | 2.87 | 8.24 | 2.21 | 19.59 | 2.23 | 1.50 | 1.47 | 2.84 | 2.88 | 5.30 |
| May 30, 2014 | 4.46 | 12.72 | 3.64 | 3.80 | 7.98 | 2.91 | 3.26 | 2.29 | 1.65 | 3.22 | 2.19 | 3.28 | 5.94 |
| May 30, 2013 | 3.80 | 4.94 | 3.28 | 2.82 | 4.46 | 2.11 | 2.78 | 1.69 | 1.18 | 1.92 | 1.63 | 3.26 | 4.46 |
| May 30, 2012 | 3.04 | 3.45 | 2.90 | 1.79 | 3.25 | 2.04 | 2.61 | 1.24 | 1.82 | 0.72 | 2.20 | 2.95 | 3.45 |
| May 31, 2011 | 4.16 | 3.28 | 2.62 | 1.65 | 3.51 | 2.90 | 2.11 | 1.80 | 1.85 | 0.64 | 3.27 | 3.25 | 3.48 |
| Jun 2, 2010 | 3.38 | 6.21 | 3.36 | 2.35 | 4.24 | 2.46 | 2.41 | 2.63 | 2.96 | 0.96 | 3.74 | 3.54 | 4.00 |
| May 29, 2009 | 3.98 | 8.23 | 3.43 | 2.53 | 3.78 | 2.76 | 2.44 | 2.67 | 1.53 | 1.25 | 2.27 | 3.61 | 3.10 |
| May 28, 2008 | 6.64 | — | 2.04 | 1.84 | — | 1.72 | 2.20 | 2.69 | 1.96 | 0.42 | 4.24 | 3.05 | 2.09 |
| May 25, 2007 | 4.27 | 1.44 | 3.99 | 3.14 | — | 2.76 | 3.26 | 4.05 | 3.29 | 0.96 | 5.06 | 4.11 | 4.14 |
| May 31, 2006 | 4.26 | 1.42 | 3.36 | 3.81 | — | 3.27 | 2.75 | 4.19 | 5.52 | 1.30 | 5.75 | 4.48 | 3.93 |
| May 23, 2005 | 4.20 | 5.83 | 3.75 | 3.42 | — | 3.34 | 3.19 | 3.75 | 3.85 | 1.47 | 3.63 | 5.97 | 4.00 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Microchip Technology Inc., P/BV, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| May 20, 2022 | 6.27 | 5.10 |
| May 18, 2021 | 7.30 | 6.22 |
| May 22, 2020 | 3.86 | 5.97 |
| May 30, 2019 | 3.66 | 5.04 |
| May 18, 2018 | 6.65 | 4.59 |
| May 30, 2017 | 5.79 | 4.04 |
| May 24, 2016 | 4.99 | 3.35 |
| May 27, 2015 | 4.80 | 2.84 |
| May 30, 2014 | 4.46 | 3.36 |
| May 30, 2013 | 3.80 | 2.64 |
| May 30, 2012 | 3.04 | 2.32 |
| May 31, 2011 | 4.16 | 2.71 |
| Jun 2, 2010 | 3.38 | 2.82 |
| May 29, 2009 | 3.98 | 2.88 |
| May 28, 2008 | 6.64 | 2.07 |
| May 25, 2007 | 4.27 | 3.09 |
| May 31, 2006 | 4.26 | 3.39 |
| May 23, 2005 | 4.20 | 3.77 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Information Technology)
Microchip Technology Inc., P/BV, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| May 20, 2022 | 6.27 | 10.25 |
| May 18, 2021 | 7.30 | 12.37 |
| May 22, 2020 | 3.86 | 10.94 |
| May 30, 2019 | 3.66 | 8.41 |
| May 18, 2018 | 6.65 | 7.00 |
| May 30, 2017 | 5.79 | 5.46 |
| May 24, 2016 | 4.99 | 4.53 |
| May 27, 2015 | 4.80 | 4.30 |
| May 30, 2014 | 4.46 | 4.36 |
| May 30, 2013 | 3.80 | 3.50 |
| May 30, 2012 | 3.04 | 3.75 |
| May 31, 2011 | 4.16 | 3.98 |
| Jun 2, 2010 | 3.38 | 4.16 |
| May 29, 2009 | 3.98 | 4.31 |
| May 28, 2008 | 6.64 | 4.00 |
| May 25, 2007 | 4.27 | 8.64 |
| May 31, 2006 | 4.26 | 7.24 |
| May 23, 2005 | 4.20 | 7.40 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).