Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Paying user area
Try for free
Microchip Technology Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Microchip Technology Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Historical Valuation Ratios (Summary)
Microchip Technology Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits considerable volatility over the analyzed periods, with values ranging from a low of approximately 17.73 to a high exceeding 600. The ratio peaked notably in mid-2018 at over 600, followed by a sharp decline. Subsequent quarters show oscillating behavior, with elevated levels in late 2020 and the first quarter of 2021 exceeding 110, then a steady downward trend through 2022, reaching around 22.35 by the end of the year. This pattern suggests periods of elevated investor expectations or earnings fluctuations, followed by a normalization of market valuation relative to earnings.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio demonstrates moderate fluctuations with a relatively narrower range compared to the P/E ratio. Early data reflects a decrease from near 35 to below 23, followed by periods of increase peaking around 45 in late 2020 and early 2021, coinciding roughly with elevated P/E levels in similar time frames. From early 2022 onward, a pronounced decrease is observed, with the ratio dropping to under 17 by the end of the last quarter. This decline indicates improving operating profit valuations relative to price or market reassessment of operating profitability over time.
- Price to Sales (P/S) Ratio
- The P/S ratio remains within a narrower scope, roughly between 3.5 and 7.6 throughout the periods. It shows a decline moving from mid-2017 to mid-2018, reaching a low near 3.6, followed by a general upward trend culminating near 7.6 by late 2021. After this peak, the ratio decreases again during 2022 to around 4.3, before ending slightly higher at 5.75. This trend reflects fluctuations in market valuation relative to sales, with possible growth expectations during late 2020 and early 2021, and some retraction in investor valuation relative to sales in 2022.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio shows a moderate upward trend from approximately 3.2 in late 2018 to over 8 in late 2021, indicating increasing market valuation relative to book value. Initial variability is observed between mid-2017 and mid-2018 with ratios fluctuating between about 3.2 and 6.6. After peaking near 8 in late 2021, the ratio experiences a slight decrease during 2022, ending near 7.3. The upward movement through most of the period suggests growing investor confidence or an improving asset base recognized by the market, with some partial correction later.
- Overall Observations
- The financial ratios analyzed reflect a period marked by significant valuation adjustments, with peaks in investor optimism occurring mainly around late 2018 and early 2021. The elevated P/E and P/OP ratios during these times indicate periods of high growth expectations or temporarily subdued earnings and operating profits. Price to sales and price to book values reveal similar patterns of rising valuations aligned with peaks in market sentiment, followed by moderate declines indicating normalization. Toward the end of the period, these ratios stabilize at more moderate levels, suggesting a balanced market appraisal of earnings, profitability, sales, and book value relative to share price.
Price to Earnings (P/E)
Microchip Technology Inc., historical P/E calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Net income (loss) (in thousands) | ||||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
EPS
= (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Microchip Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the examined periods.
- Share Price Trends
- The share price exhibits general volatility yet an overall upward trajectory over the time frame analyzed. Initially, the price fluctuates moderately with values ranging mostly between $35 and $50. From mid-2020 onwards, the price shows notable appreciation, reaching a peak above $80 around late 2021. Subsequently, some decline is observed in 2022 before recovering to a high level slightly above $80 by the end of the year.
- Earnings Per Share (EPS) Trends
- EPS displays considerable variability in earlier periods, with several quarters showing low earnings close to zero and some moderate recovery phases. From mid-2018 to early 2020, EPS remains relatively stable around 0.6 to 1.35 US dollars, followed by a temporary dip in late 2020 and early 2021. From mid-2021 onward, a clear upward trend in earnings emerges, with EPS rising consistently to reach a strong peak of 3.78 US dollars by the last recorded quarter.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio demonstrates significant fluctuations that reflect changes in both share price and EPS. In the initial periods, the P/E is highly elevated, peaking above 600 in one quarter, indicating relatively high market valuations compared to earnings during quarters of very low EPS. Following this, the P/E ratio gradually declines, consistent with the improving EPS and some moderation in share price increases. Towards the end of the period, the P/E stabilizes at more moderate levels, generally between 17 and 43, suggesting a more balanced valuation relative to earnings.
- Interrelationships and Insights
- The data suggests a relationship where low and unstable EPS earlier on contributed to very high P/E ratios, pointing to market expectations not fully met in earnings during those times. The sustained growth in EPS from 2021 correlates with a more measured P/E contraction despite rising share prices, implying enhanced earnings productivity supporting stock valuations. The dynamics between share price appreciation and EPS growth suggests improving company performance and possibly enhanced investor confidence reflected in market pricing.
Price to Operating Profit (P/OP)
Microchip Technology Inc., historical P/OP calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Operating income (loss) (in thousands) | ||||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
Operating profit per share
= (Operating income (loss)Q3 2023
+ Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Microchip Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals several notable trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the analyzed quarters.
- Share Price Performance
- The share price exhibited fluctuations with an overall upward trend from June 2017 through December 2022. Initial values ranged in the low 40s (US$41.75 in mid-2017), experiencing some volatility such as a dip to US$35.15 in September 2018. Subsequently, the price showed significant growth, surpassing US$80 in late 2021 before moderating slightly. The highest recorded price was US$84.53 in the last quarter of 2022. This upward momentum indicates increasing market valuation and investor confidence over the period despite some interim declines.
- Operating Profit Per Share
- The operating profit per share consistently increased throughout the examined quarters. Starting from US$1.20 in June 2017, it demonstrated steady quarterly growth with minor fluctuations, reaching US$5.14 by December 2022. This marked more than a fourfold increase, reflective of improving operational efficiency or profitability enhancements. Notably, the growth accelerated particularly after early 2020, suggesting successful strategic initiatives or market expansion during this phase.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio generally declined over the observed timeframe, starting relatively high at 34.92 in mid-2017, with periods of variability. The ratio peaked at 45.49 in December 2020, indicating comparatively higher share prices relative to operating profit at that point. However, after this peak, the ratio decreased significantly to 12.97 by September 2022, then slightly rose to 16.43 at the end of 2022. This decreasing trend in P/OP suggests the stock became more reasonably priced relative to operating profit, potentially indicating improved valuation or that profit growth outpaced share price increases in the latter part of the period.
Overall, the data portrays a company with strengthening profitability and a growing market valuation, while its stock valuation metrics suggest increasing investor confidence tempered by a more balanced price relative to earnings derived from operations.
Price to Sales (P/S)
Microchip Technology Inc., historical P/S calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Net sales (in thousands) | ||||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
Sales per share
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Microchip Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited moderate volatility over the analyzed period. Starting around $41.75 in mid-2017, it experienced fluctuations with a notable dip in late 2018 and early 2019, reaching lows near $35.15. Subsequently, from 2019 through early 2020, the price generally increased, peaking at $71.87 in late 2020 and early 2021. Following this peak, the share price showed oscillations, with decreases observed in mid to late 2022, but ended on a strong note at $84.53 by the end of 2022.
- Sales per Share
- Sales per share showed a consistent upward trajectory throughout the period. Beginning at $7.69 in mid-2017, sales per share steadily increased nearly every quarter, reaching $14.70 by the end of 2022. This indicates a sustained growth in revenue generation relative to the number of shares outstanding, implying operational expansion and improved sales efficiency over time.
- Price-to-Sales (P/S) Ratio
- The P/S ratio demonstrated more variability, reflecting changing market valuations relative to sales performance. Initially, the ratio was around 5.4–5.7, then dropped substantially during mid to late 2018, hitting lows near 3.6–3.8, aligning with the lower share price period. From 2019 onward, the ratio generally increased, peaking at around 7.6 in late 2021, before declining again to approximately 4.3 by late 2022. The fluctuation suggests shifts in investor sentiment, market conditions, or expectations about future growth despite steadily increasing sales per share.
- Overall Insights
- The combination of steadily rising sales per share and a fluctuating share price results in a volatile P/S ratio that peaked during 2020-2021. The period of increased valuation multiples coincides with a broader market context that may have favored technology companies or reflected optimism about future earnings. The subsequent decline in P/S ratio toward end-2022, despite the highest recorded share price and sales per share, could indicate a market recalibration or growing caution among investors. The data reflects a firm with improving operational performance and sales growth, amid varying market valuations over time.
Price to Book Value (P/BV)
Microchip Technology Inc., historical P/BV calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Stockholders’ equity (in thousands) | ||||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Microchip Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations over the observed periods, initially ranging around the low-to-mid 40s USD per share. Notably, the price experienced a dip in September 2018, dropping to around 35.15 USD, followed by a recovery and gradual upward trend through 2019 and early 2020. The price surged significantly in late 2020 and reached a peak above 80 USD in late 2021. However, after this peak, the share price declined somewhat, finishing near 84.53 USD at the end of 2022, indicating increased volatility and strong growth dynamics later in the period.
- Book Value per Share (BVPS) Development
- The book value per share displayed relatively moderate changes throughout the timeline. Starting at around 7.33 USD, BVPS rose sharply in mid-2018 to a peak near 11.11–11.72 USD through 2019, followed by a slight decline in 2020 to below 10 USD per share. Subsequently, BVPS stabilized and showed a steady incremental increase from early 2021 through the end of 2022, reaching approximately 11.52 USD. This pattern suggests a general strengthening of the company’s net asset value over time, with temporary setbacks.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio varied widely, indicating changing market perceptions of the company's valuation relative to its net assets. Initially, the ratio was high around 6 to 6.6 but dropped significantly in mid-2018, reflecting possibly undervaluation or an increase in book value. The ratio climbed again through late 2020 and into 2021, peaking above 8 at times. Toward the end of 2022, the ratio decreased to around 7.34, illustrating fluctuations but a generally elevated valuation relative to book value. This oscillation points to periods of market optimism and adjustments tied to company performance or broader economic conditions.
- Overall Insights
- Over the observed periods, the company demonstrated growth in share price and book value with periods of volatility. The rising share price alongside an increasing BVPS indicates enhanced investor confidence and balance sheet strength. The significant variations in the P/BV ratio suggest that market valuation was influenced by factors beyond book value, potentially including earnings prospects, market sentiment, or industry trends. The data reflects a favorable long-term trend with intermittent corrections in both assets and stock price valuation.