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Microchip Technology Inc. (NASDAQ:MCHP)

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Price to Earnings (P/E)
since 2005

Microsoft Excel

Calculation

Microchip Technology Inc., P/E, long-term trends, calculation

Microsoft Excel
P/E = Share price1, 2, 3 ÷ Earnings per share1 (EPS) EPS1 = Net income1
(in thousands)		 ÷ No. shares of common stock outstanding2
May 20, 2022 28.76 = 66.67 ÷ 2.32 2.32 = 1,285,500 ÷ 554,501,300
May 18, 2021 111.51 = 71.22 ÷ 0.64 0.64 = 349,400 ÷ 547,062,818
May 22, 2020 37.76 = 43.91 ÷ 1.16 1.16 = 570,600 ÷ 490,664,994
May 30, 2019 54.38 = 40.67 ÷ 0.75 0.75 = 355,900 ÷ 475,853,016
May 18, 2018 85.40 = 46.40 ÷ 0.54 0.54 = 255,400 ÷ 470,073,406
May 30, 2017 114.98 = 41.26 ÷ 0.36 0.36 = 164,639 ÷ 458,795,754
May 24, 2016 33.11 = 24.98 ÷ 0.75 0.75 = 324,132 ÷ 429,630,446
May 27, 2015 26.59 = 24.25 ÷ 0.91 0.91 = 369,009 ÷ 404,646,450
May 30, 2014 24.12 = 23.80 ÷ 0.99 0.99 = 395,281 ÷ 400,582,258
May 30, 2013 57.63 = 18.62 ÷ 0.32 0.32 = 127,389 ÷ 394,281,914
May 30, 2012 18.00 = 15.65 ÷ 0.87 0.87 = 336,705 ÷ 387,166,440
May 31, 2011 17.98 = 19.77 ÷ 1.10 1.10 = 418,950 ÷ 380,959,308
Jun 2, 2010 23.91 = 13.98 ÷ 0.58 0.58 = 217,005 ÷ 371,085,862
May 29, 2009 15.86 = 10.79 ÷ 0.68 0.68 = 248,820 ÷ 365,732,020
May 28, 2008 23.10 = 18.59 ÷ 0.80 0.80 = 297,748 ÷ 369,904,994
May 25, 2007 23.99 = 19.61 ÷ 0.82 0.82 = 357,029 ÷ 436,705,086
May 31, 2006 30.34 = 17.15 ÷ 0.57 0.57 = 242,369 ÷ 428,760,436
May 23, 2005 29.22 = 14.98 ÷ 0.51 0.51 = 213,785 ÷ 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 trajectory from 2005 to 2022 is characterized by a sustained increase in share price and significant volatility in earnings per share, resulting in extreme fluctuations in the price-to-earnings (P/E) ratio. While the long-term trend in valuation reflects growth, the ratio has frequently diverged from historical norms due to periodic earnings contractions.

Share Price Performance
A consistent upward trend in share price is observed over the analyzed period. The price rose from 14.98 US$ in 2005 to a peak of 71.22 US$ in 2021, before settling at 66.67 US$ in 2022. Significant acceleration in price appreciation occurred between 2016 and 2018, and again between 2020 and 2021.
Earnings Per Share (EPS) Volatility
Earnings per share exhibited substantial instability. Although EPS ended the period at a high of 2.32 US$ in 2022, it experienced several sharp declines, most notably in 2013 (0.32 US$), 2017 (0.36 US$), and 2021 (0.64 US$). These contractions often occurred despite rising share prices, indicating a decoupling of market valuation from immediate profitability during those intervals.
Price-to-Earnings (P/E) Ratio Dynamics
The P/E ratio remained relatively stable between 15.86 and 30.34 from 2005 to 2012. However, subsequent years saw extreme volatility. The ratio peaked at 114.98 in 2017 and 111.51 in 2021, driven by the combination of increasing share prices and depressed earnings. A significant correction is observed in 2022, where the P/E ratio returned to 28.76, aligned with a substantial recovery in EPS to 2.32 US$.
Valuation Analysis
The data indicates that the market frequently assigned a high growth premium to the company, as evidenced by the P/E spikes. These peaks suggest investor confidence in future earnings recovery or growth potential that exceeded current performance. The return to a P/E ratio below 30 in 2022 suggests a normalization of valuation as earnings caught up with the share price.

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Comparison to Competitors

Microchip Technology Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel
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 28.76 96.16 31.21 13.55 20.70 14.54 16.89 13.77 — 6.62 68.08 9.75 18.88
May 18, 2021 111.51 45.54 68.31 22.05 40.73 10.59 25.97 21.03 — 13.38 78.54 17.15 20.38
May 22, 2020 37.76 41.66 41.43 22.31 66.38 11.02 25.92 24.23 7.94 21.80 67.59 28.06 27.95
May 30, 2019 54.38 169.62 31.04 20.25 47.09 13.91 18.44 13.64 — 7.98 22.77 22.03 24.47
May 18, 2018 85.40 68.76 22.17 9.75 8.14 10.41 23.02 11.70 20.02 3.40 48.05 — 18.05
May 30, 2017 114.98 282.39 44.94 16.16 63.27 22.15 15.04 15.33 372.92 9.20 36.34 31.96 27.77
May 24, 2016 33.11 — 26.07 20.68 — 16.72 17.18 15.81 — — 28.95 17.37 21.45
May 27, 2015 26.59 — 27.06 15.88 28.48 11.85 22.54 17.37 17.70 6.25 19.88 17.18 17.66
May 30, 2014 24.12 — 27.51 27.87 98.35 13.90 20.52 18.20 24.44 11.39 22.17 16.11 21.89
May 30, 2013 57.63 — 23.06 78.13 23.31 12.80 17.82 66.48 17.31 14.78 14.02 17.19 22.29
May 30, 2012 18.00 — 18.56 118.67 13.97 9.48 11.45 37.82 14.87 — 15.69 16.21 21.47
May 31, 2011 17.98 10.61 11.45 7.52 12.75 10.29 7.61 6.16 11.31 32.47 41.12 20.59 17.06
Jun 2, 2010 23.91 13.36 15.08 18.91 15.37 10.60 25.53 13.40 36.98 4.16 — 22.76 12.93
May 29, 2009 15.86 17.53 35.03 — — 26.39 — — 39.76 — — 46.01 20.53
May 28, 2008 23.10 — 6.28 14.45 — 12.70 18.23 10.91 — — 13.91 17.31 10.17
May 25, 2007 23.99 — 18.79 14.37 — 16.91 21.95 6.95 — — 22.62 19.70 15.55
May 31, 2006 30.34 — 20.98 16.71 — 23.84 25.83 17.41 50.71 25.89 27.68 24.33 10.29
May 23, 2005 29.22 118.04 33.33 25.22 — 13.93 20.83 13.36 67.90 45.76 42.67 30.98 20.56

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/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)

Microsoft Excel
Microchip Technology Inc. Semiconductors & Semiconductor Equipment
May 20, 2022 28.76 23.72
May 18, 2021 111.51 25.08
May 22, 2020 37.76 24.71
May 30, 2019 54.38 19.59
May 18, 2018 85.40 13.92
May 30, 2017 114.98 24.36
May 24, 2016 33.11 26.55
May 27, 2015 26.59 15.22
May 30, 2014 24.12 17.33
May 30, 2013 57.63 17.07
May 30, 2012 18.00 15.65
May 31, 2011 17.98 12.72
Jun 2, 2010 23.91 13.77
May 29, 2009 15.86 55.18
May 28, 2008 23.10 21.75
May 25, 2007 23.99 23.45
May 31, 2006 30.34 20.73
May 23, 2005 29.22 20.78

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/E, long-term trends, comparison to industry (information technology)

Microsoft Excel
Microchip Technology Inc. Information Technology
May 20, 2022 28.76 26.99
May 18, 2021 111.51 29.75
May 22, 2020 37.76 30.97
May 30, 2019 54.38 23.40
May 18, 2018 85.40 23.17
May 30, 2017 114.98 23.55
May 24, 2016 33.11 19.69
May 27, 2015 26.59 16.54
May 30, 2014 24.12 17.14
May 30, 2013 57.63 14.15
May 30, 2012 18.00 14.37
May 31, 2011 17.98 13.71
Jun 2, 2010 23.91 15.08
May 29, 2009 15.86 21.50
May 28, 2008 23.10 15.83
May 25, 2007 23.99 36.48
May 31, 2006 30.34 32.07
May 23, 2005 29.22 33.76

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).