MCHPNEUTRAL

EV/EBITDA

41.9x

Updated 104h ago

Sector Performance

91th percentile

MCHP

41.9x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

MCHP’s current EV/EBITDA of 41.9x means that its enterprise value — the total market value of its equity plus debt minus cash — is 41.9 times its earnings before interest, taxes, depreciation, and amortization (EBITDA).

That multiple is far above the sector median of 13.6x, placing the stock in the 91st percentile among its sector peers, indicating a premium valuation relative to the typical company. The metric has been decreasing over the last eight quarters, though the year-over-year change is not available; the quarter-over-quarter change is -14.2%, and the sequence of recent values (41.9x, 48.8x, 56.6x, 81.1x) confirms this downward trajectory. While the still-high level signals elevated expectations and potential downside risk if growth slows, the ongoing decline suggests the market is gradually repricing the stock lower, which could reduce some of that risk over time. This combination of a very high but falling multiple aligns with a NEUTRAL verdict: the premium demands caution, but the trend may be moving toward a more reasonable valuation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about MCHP?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are MCHP's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.