Price to Sales (P/S)
since 2005
Calculation
Microchip Technology Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 20, 2022 | 5.42 | = | 66.67 | ÷ | 12.30 | 12.30 | = | 6,820,900 | ÷ | 554,501,300 | |
| May 18, 2021 | 7.16 | = | 71.22 | ÷ | 9.94 | 9.94 | = | 5,438,400 | ÷ | 547,062,818 | |
| May 22, 2020 | 4.08 | = | 43.91 | ÷ | 10.75 | 10.75 | = | 5,274,200 | ÷ | 490,664,994 | |
| May 30, 2019 | 3.62 | = | 40.67 | ÷ | 11.24 | 11.24 | = | 5,349,500 | ÷ | 475,853,016 | |
| May 18, 2018 | 5.48 | = | 46.40 | ÷ | 8.47 | 8.47 | = | 3,980,800 | ÷ | 470,073,406 | |
| May 30, 2017 | 5.55 | = | 41.26 | ÷ | 7.43 | 7.43 | = | 3,407,807 | ÷ | 458,795,754 | |
| May 24, 2016 | 4.94 | = | 24.98 | ÷ | 5.06 | 5.06 | = | 2,173,334 | ÷ | 429,630,446 | |
| May 27, 2015 | 4.57 | = | 24.25 | ÷ | 5.31 | 5.31 | = | 2,147,036 | ÷ | 404,646,450 | |
| May 30, 2014 | 4.94 | = | 23.80 | ÷ | 4.82 | 4.82 | = | 1,931,217 | ÷ | 400,582,258 | |
| May 30, 2013 | 4.64 | = | 18.62 | ÷ | 4.01 | 4.01 | = | 1,581,623 | ÷ | 394,281,914 | |
| May 30, 2012 | 4.38 | = | 15.65 | ÷ | 3.57 | 3.57 | = | 1,383,176 | ÷ | 387,166,440 | |
| May 31, 2011 | 5.06 | = | 19.77 | ÷ | 3.90 | 3.90 | = | 1,487,205 | ÷ | 380,959,308 | |
| Jun 2, 2010 | 5.47 | = | 13.98 | ÷ | 2.55 | 2.55 | = | 947,729 | ÷ | 371,085,862 | |
| May 29, 2009 | 4.37 | = | 10.79 | ÷ | 2.47 | 2.47 | = | 903,297 | ÷ | 365,732,020 | |
| May 28, 2008 | 6.64 | = | 18.59 | ÷ | 2.80 | 2.80 | = | 1,035,737 | ÷ | 369,904,994 | |
| May 25, 2007 | 8.24 | = | 19.61 | ÷ | 2.38 | 2.38 | = | 1,039,671 | ÷ | 436,705,086 | |
| May 31, 2006 | 7.92 | = | 17.15 | ÷ | 2.16 | 2.16 | = | 927,893 | ÷ | 428,760,436 | |
| May 23, 2005 | 7.38 | = | 14.98 | ÷ | 2.03 | 2.03 | = | 846,936 | ÷ | 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 between 2005 and 2022 is characterized by significant growth in revenue per share and substantial fluctuations in market valuation. While the share price increased more than fourfold over the period, the growth in sales per share acted as a primary driver for this appreciation, evolving from 2.03 US$ in 2005 to 12.30 US$ by 2022.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio exhibited a high initial valuation, peaking at 8.24 in 2007. A sharp contraction occurred between 2008 and 2009, with the ratio falling to 4.37, reflecting a period of valuation compression. From 2010 to 2018, the ratio remained relatively stable, generally oscillating between 4.38 and 5.55, suggesting a consistent market pricing model relative to revenue during this decade.
- Recent Valuation Volatility
- A notable valuation trough occurred in 2019, when the P/S ratio reached its lowest point in the observed period at 3.62. This was followed by a rapid expansion, culminating in a spike to 7.16 in 2021, before correcting to 5.42 in 2022. This recent volatility indicates a period of heightened market sensitivity compared to the stability seen in the preceding decade.
- Relationship Between Price and Revenue Growth
- The increase in share price from 14.98 US$ in 2005 to 66.67 US$ in 2022 was supported by a consistent upward trend in sales per share. Because sales per share grew at a rate that often mirrored or exceeded the growth in share price, the P/S ratio did not scale linearly with the price, instead returning frequently to a historical mean of approximately 4.5 to 5.5.
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Comparison to Competitors
Microchip Technology Inc., P/S, 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 | 5.42 | 5.38 | 7.14 | 3.43 | 7.00 | 1.85 | 6.09 | 3.68 | 12.40 | 1.87 | 24.67 | 2.85 | 8.25 |
| May 18, 2021 | 7.16 | 8.76 | 12.98 | 5.63 | 9.55 | 2.66 | 7.80 | 5.62 | 10.92 | 2.83 | 20.41 | 4.62 | 8.63 |
| May 22, 2020 | 4.08 | 10.63 | 9.03 | 4.69 | 7.40 | 2.96 | 5.43 | 5.43 | 4.66 | 2.73 | 17.31 | 6.20 | 10.81 |
| May 30, 2019 | 3.62 | 8.59 | 7.06 | 3.75 | 5.62 | 4.07 | 4.74 | 3.10 | 4.47 | 2.15 | 8.05 | 3.98 | 8.54 |
| May 18, 2018 | 5.48 | 3.58 | 5.35 | 1.87 | 4.78 | 3.09 | 4.58 | 2.51 | 4.33 | 1.58 | 15.07 | 3.37 | 6.38 |
| May 30, 2017 | 5.55 | 2.28 | 6.40 | 3.82 | 6.07 | 3.39 | 4.00 | 3.25 | 3.40 | 2.30 | 8.76 | 3.54 | 6.83 |
| May 24, 2016 | 4.94 | 3.08 | 6.57 | 3.29 | 5.48 | 2.90 | 4.06 | 2.46 | 2.12 | 1.44 | 3.55 | 4.21 | 5.77 |
| May 27, 2015 | 4.57 | 0.38 | 5.49 | 2.26 | 5.69 | 2.44 | 2.93 | 2.17 | 2.08 | 1.12 | 2.68 | 3.58 | 4.06 |
| May 30, 2014 | 4.94 | 0.43 | 6.04 | 3.29 | 6.06 | 2.91 | 4.08 | 2.50 | 2.26 | 2.12 | 2.36 | 4.85 | 4.73 |
| May 30, 2013 | 4.64 | 0.51 | 5.90 | 2.66 | 5.11 | 2.34 | 3.40 | 2.10 | 1.68 | 1.94 | 1.84 | 4.74 | 3.95 |
| May 30, 2012 | 4.38 | 0.34 | 4.48 | 1.48 | 3.33 | 1.96 | 2.73 | 2.39 | 2.70 | 0.67 | 2.28 | 5.18 | 2.94 |
| May 31, 2011 | 5.06 | 0.79 | 3.32 | 1.38 | 3.01 | 2.47 | 1.90 | 1.38 | 2.83 | 0.62 | 2.94 | 5.86 | 2.78 |
| Jun 2, 2010 | 5.47 | 0.97 | 3.89 | 1.86 | 3.05 | 2.79 | 2.98 | 2.18 | 4.65 | 0.91 | 3.00 | 6.72 | 2.99 |
| May 29, 2009 | 4.37 | 0.99 | 4.31 | 3.58 | 2.65 | 3.28 | 3.50 | 3.47 | 1.98 | 1.21 | 1.58 | 7.03 | 2.89 |
| May 28, 2008 | 6.64 | 0.22 | 1.91 | 1.71 | — | 1.79 | 2.60 | 1.94 | 2.31 | 0.44 | 2.71 | 4.91 | 1.56 |
| May 25, 2007 | 8.24 | 0.72 | 3.67 | 2.52 | — | 3.08 | 4.24 | 1.86 | 4.75 | 1.30 | 3.31 | 7.33 | 2.99 |
| May 31, 2006 | 7.92 | 1.45 | 4.48 | 2.77 | — | 3.40 | 4.75 | 3.56 | 10.06 | 2.00 | 3.53 | 7.98 | 3.13 |
| May 23, 2005 | 7.38 | 3.34 | 5.79 | 4.36 | — | 3.11 | 4.66 | 2.66 | 7.86 | 1.76 | 2.13 | 11.70 | 3.57 |
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/S, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| May 20, 2022 | 5.42 | 5.92 |
| May 18, 2021 | 7.16 | 6.36 |
| May 22, 2020 | 4.08 | 5.78 |
| May 30, 2019 | 3.62 | 4.71 |
| May 18, 2018 | 5.48 | 3.84 |
| May 30, 2017 | 5.55 | 4.12 |
| May 24, 2016 | 4.94 | 3.57 |
| May 27, 2015 | 4.57 | 2.78 |
| May 30, 2014 | 4.94 | 3.39 |
| May 30, 2013 | 4.64 | 2.97 |
| May 30, 2012 | 4.38 | 2.50 |
| May 31, 2011 | 5.06 | 2.61 |
| Jun 2, 2010 | 5.47 | 2.95 |
| May 29, 2009 | 4.37 | 3.36 |
| May 28, 2008 | 6.64 | 2.02 |
| May 25, 2007 | 8.24 | 3.21 |
| May 31, 2006 | 7.92 | 3.67 |
| May 23, 2005 | 7.38 | 3.95 |
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/S, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| May 20, 2022 | 5.42 | 6.01 |
| May 18, 2021 | 7.16 | 6.98 |
| May 22, 2020 | 4.08 | 6.11 |
| May 30, 2019 | 3.62 | 4.62 |
| May 18, 2018 | 5.48 | 4.31 |
| May 30, 2017 | 5.55 | 4.18 |
| May 24, 2016 | 4.94 | 3.46 |
| May 27, 2015 | 4.57 | 3.03 |
| May 30, 2014 | 4.94 | 3.31 |
| May 30, 2013 | 4.64 | 2.85 |
| May 30, 2012 | 4.38 | 2.88 |
| May 31, 2011 | 5.06 | 2.84 |
| Jun 2, 2010 | 5.47 | 3.04 |
| May 29, 2009 | 4.37 | 3.11 |
| May 28, 2008 | 6.64 | 2.38 |
| May 25, 2007 | 8.24 | 5.73 |
| May 31, 2006 | 7.92 | 5.21 |
| May 23, 2005 | 7.38 | 5.62 |
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).