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).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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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), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).
The analyzed financial ratios exhibit varied trends over the reported quarters, demonstrating significant fluctuations and underlying changes in market valuation metrics relative to earnings, operating profit, sales, and book value.
- Price to Earnings (P/E) Ratio
- The P/E ratio data, available from March 31, 2017 onward, shows considerable volatility. Initial values started at 114.98 and then declined to the 30s and 40s range through 2017, followed by spikes to very high levels such as 191.71 and as much as 601.17 in late 2018. Post these highs, the ratio generally stabilized to a range between approximately 37 and 59 throughout 2019 and early 2020, before climbing again in early 2021 to above 100. Subsequently, a steady decrease is observed from mid-2021 through the end of 2022, culminating near 17.73 and a slight rebound to 22.35. These fluctuations suggest episodic investor optimism or earnings variability affecting market pricing.
- Price to Operating Profit (P/OP) Ratio
- Beginning in March 2017, the P/OP ratio demonstrates an overall downward trend with short-term fluctuations. The ratio started high at 68.63 in early 2017 but declined sharply to values in the high twenties by late 2017. Throughout 2018 and 2019, the ratio fluctuated in the mid to high twenties and around 30, before increasing to a local peak above 45 in early 2021. From that peak, a gradual decrease occurred through 2022, reaching a low near 12.97 before a modest increase at the end of 2022. This trend indicates a relative improvement in operating profits or changes in stock pricing signaling enhanced operational efficiency or market adjustments.
- Price to Sales (P/S) Ratio
- This ratio fluctuated modestly between 3.58 and 7.62 over the observed quarters. The early period showed ratios in the mid-5 to 5.7 range, with a dip to around 3.6 by early 2019. The metric then steadily rose, peaking at approximately 7.62 in late 2021, indicating potentially increasing stock prices relative to sales or sales growth patterns. Towards the end of the data series, the ratio declined but remained above 4.2, suggesting moderate valuation relative to sales.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio displays a pattern of moderate volatility with a general upward trajectory over time. Starting near 5.15 in mid-2016, the ratio experienced increases, reaching around 6.6 in early 2018 and showing a dip to about 3.2 at the end of 2018. Subsequently, it rose significantly, surpassing 7.3 by early 2021 and remaining in the 6 to 8 range through the end of 2021. The ratio trended downward during 2022, landing just above 5 at the final measurement, highlighting fluctuations in book value relative to market price with indications of increased market valuation compared to net asset value over much of the period.
In summary, the pricing multiples reveal cyclical investor sentiment and changing financial performance across the time horizon. Earnings-related multiples (P/E and P/OP) experienced marked volatility, possibly reflecting earnings growth variability or external market conditions. Valuation methods based on sales and book value showed relatively moderate shifts, with gradual increases indicating positive assessments of sales and asset values until recent declines, which could indicate market corrections or fundamental shifts impacting valuation perspectives.
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 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).
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 share price exhibited a general upward trend from June 2016 through December 2022, despite occasional fluctuations. Starting around $30.32 in mid-2016, the price rose steadily, reaching peaks above $70 in late 2020 and early 2021. Notable volatility occurred between mid-2018 and early 2019, with the price dropping to approximately $35.15 before recovering. The highest recorded share price was $84.53 in December 2022, indicating strong market performance toward the end of the observed period.
Earnings per share (EPS) data is available from March 2017 onward and reveals progressive growth with some fluctuations. Initial EPS was $0.36 in early 2017, increasing to $1.29 by late 2017. After a dip in the first quarter of 2018 to $0.26 and even lower to $0.06 by the end of 2018, EPS resumed an upward trajectory, rising to $0.8 in late 2019. A more substantial increase occurred from early 2020, culminating in $3.78 by the end of 2022. This suggests improving profitability over the period with occasional short-term setbacks.
The price-to-earnings (P/E) ratio displayed significant variability, particularly in periods corresponding to low EPS values. After initial high ratios exceeding 100 in early 2017 and mid-2018—peaking at over 600 at the end of 2018—the P/E ratio measured a declining trend from late 2019 onwards. This decline corresponds with rising EPS and relatively stable to increasing share prices, resulting in a lower valuation multiple by the end of 2022. The ratio dropped from over 100 to approximately 22.35, reflecting an improved earnings base and possibly a more balanced market assessment.
Overall, the data depicts a company experiencing considerable growth in earnings and share value over the analyzed timeframe. The early periods were marked by pronounced volatility in both profits and share prices, which moderated in recent years. The diminishing P/E ratio in the face of growing EPS indicates enhanced earnings quality and market confidence in the company's financial performance.
- Share Price Trend
- Steady increase from mid-2016 (~$30) to late 2022 (~$85), with notable volatility between 2018 and 2019.
- Earnings Per Share
- Growth with fluctuations; initial rise to $1.29 in 2017, dip at end of 2018, followed by continuous growth up to $3.78 in 2022.
- Price-to-Earnings Ratio
- Highly variable early on, peaking in 2018 due to low EPS; a clear downward trend post-2019 as earnings improved and valuations normalized.
- Financial Implications
- Increasing profitability and share price coupled with decreasing P/E ratio suggest improved earnings performance and market valuation stability over time.
Price to Operating Profit (P/OP)
Microchip Technology Inc., historical P/OP calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).
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 share price exhibited a general upward trend over the observed period from June 2016 to December 2022. Initially, the share price increased steadily from $30.32 to a peak of $71.87 by December 2020. Thereafter, some volatility was observed with fluctuations between approximately $59 and $84.53 towards the end of the period. Despite short-term declines, the overall pattern indicates significant growth in market valuation over the years.
Operating profit per share, which started being reported from March 2017, showed a consistent increasing trend throughout the observed quarters. Beginning at $0.6 in March 2017, the metric rose steadily to reach $5.14 by the end of December 2022. The increase in operating profit per share reflects improved profitability on a per-share basis, suggesting enhanced operational efficiency or revenue growth over time.
The ratio of price to operating profit (P/OP) displayed a declining trend, indicating that the share price growth has outpaced the increase in operating profit per share at various times or that the market's pricing of operating profits became more conservative. Initially, the P/OP ratio was relatively high at approximately 68.63 in June 2017, followed by a general decline to a low of 12.97 in December 2022, marking a notable compression in the valuation multiple. Some periods experienced increases in the P/OP ratio, corresponding to market price increases not fully matched by operating profit growth, but the long-term trend suggests improving value attribution relative to operating profitability.
Overall, the data reflects a company experiencing growth in both market valuation and operational profitability, with the latter showing consistent improvements over the years. The contracting P/OP ratio towards the later periods suggests an alignment of share price closer to fundamental operational earnings, possibly indicating a maturing market perception of the company's financial performance.
- Share Price
- Increased from $30.32 (Jun 2016) to a peak of $84.53 (Dec 2022) with some volatility post-2020.
- Operating Profit Per Share
- Started at $0.6 (Mar 2017) rising steadily to $5.14 (Dec 2022), showing improved profitability.
- Price to Operating Profit Ratio (P/OP)
- Declined from 68.63 (Jun 2017) to 12.97 (Dec 2022), indicating a relative improvement in valuation based on operating profitability.
Price to Sales (P/S)
Microchip Technology Inc., historical P/S calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).
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.
The share price of the company demonstrates significant fluctuations over the analyzed periods. Initially, from June 2016 to March 2017, the price shows a consistent upward trajectory, increasing from approximately $30.32 to $41.26. This positive trend continues with some volatility, reaching a peak near $50.86 by December 2019. Subsequently, a moderate decline occurs in early 2020, with the price dropping to around $43.91 in March 2020. However, the share price rebounds strongly afterward, reaching a notable high of $82.92 by September 2021. In the latest quarters, there is some volatility, with prices fluctuating between roughly $59.46 and $84.53 towards the end of 2022.
Sales per share exhibit a steady and gradual increase over the periods observed. Starting at approximately $7.43 in June 2017, sales per share rose consistently, reaching $14.70 by December 2022. Despite this overall growth, there are some slight fluctuations in the intermediate quarters, particularly around mid-2020 where sales per share exhibit a modest decline before resuming the upward trajectory. This trend indicates a general enhancement in revenue generation capacity per share across the timeframe.
The price-to-sales (P/S) ratio presents a more complex pattern. From mid-2017 to early 2018, the ratio remains relatively stable around the 5 to 5.75 range, with a noticeable dip to 3.58 in September 2018. This decline suggests either a relative stock price decrease or a sales per share increase during that period. Following this, the P/S ratio fluctuates moderately, rising to about 7.31 in March 2021, signaling a higher valuation relative to sales. However, in the subsequent periods leading to December 2022, the P/S ratio declines back to approximately 5.75. These variations indicate shifting market perceptions of the company's valuation in relation to its sales performance, which could reflect broader market conditions or company-specific factors influencing investor sentiment.
Overall, the data portrays a company with increasing sales strength and improving revenue per share metrics. The share price growth, despite some volatility, aligns generally with the sales per share expansion but shows periods where market valuation either outpaces or lags underlying sales growth, as evidenced by the fluctuating P/S ratio. The observed volatility in share price and valuation ratios in recent periods may warrant closer monitoring to understand market dynamics and operational performance impacts.
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 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).
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.
The provided financial data reveals several notable trends regarding the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the examined periods.
- Share Price
- The share price experienced a general upward trajectory from mid-2016 to late 2022, starting at $30.32 in June 2016 and reaching a peak of $84.53 in December 2022. The movement was not entirely smooth; fluctuations were observed, notably a decline in late 2018 and early 2020, followed by significant recovery and growth thereafter. The period around September 2018 showed a sharp drop to $35.15 from a preceding $49.04 in June 2018, and the COVID-19 outbreak coincided with a drop in early 2020 from $50.86 in December 2019 to $43.91 in March 2020. Subsequently, growth resumed with prices increasing steadily through late 2020 and into 2021.
- Book Value per Share (BVPS)
- The book value per share exhibited a less volatile but generally increasing trend over the same period. Beginning at $5.88 in June 2016, BVPS increased gradually, hitting a notable rise around mid-2018 where it jumped from approximately $7.00 levels to above $10, maintaining a relatively stable march upwards thereafter, reaching $11.52 by December 2022. Minor fluctuations occurred, such as a slight dip in mid-2020 coinciding with market uncertainties, but overall the BVPS sustained growth.
- Price-to-Book Value ratio (P/BV)
- The P/BV ratio demonstrated considerable volatility, largely reflecting the combined dynamic of share price changes and more gradual shifts in book value per share. Initially high at above 5 times in 2016, it fluctuated widely, dropping to as low as approximately 3.22 in September 2018, a period which correlates with the significant share price decline observed then. Following this trough, the ratio increased markedly, reaching values over 7 times from late 2020 into 2022, indicating a growth in market valuation relative to the company's book value. This suggests an increased market optimism or perceived growth potential beyond the book value during this recent period.
In summary, the share price and market valuation of the company exhibited strong recovery and growth following periods of decline, especially post-2018 and early 2020. The book value per share grew steadily, providing a solid asset base underpinning the share price. Elevated P/BV ratios in recent periods reflect heightened investor confidence and a premium valuation relative to book value, consistent with expectations of sustained performance or growth prospects.