MCHPNEUTRAL

MCHP EV/EBITDA Analysis

30.8x

Updated 222h ago·SEC filings & market data

Key Takeaway

The current EV/EBITDA of 32.0x means investors pay $32 for each dollar of operating profit (EBITDA) before interest and taxes.

Sector Performance

89th percentile

MCHP

30.8x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

32.0x(Aug 2026)

↑ Improving

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Deep Analysis

The current EV/EBITDA of 32.0x means investors pay $32 for each dollar of operating profit (EBITDA) before interest and taxes.

This is far above the sector median of 13.6x, placing MCHP in the 89th percentile among peers—meaning only 11% of sector companies carry a higher multiple. The metric is decreasing: quarter-over-quarter it fell 14.5%, from 37.5x to 32.0x, while the year-over-year change is not available (N/A). The trend direction over the last eight quarters is decreasing, with prior values of 37.5x, 41.5x, and 41.9x. A high level combined with a downward trend implies the stock remains expensive, but valuation pressure is easing—either through faster profit growth or a falling share price. This mix points to continued risk from a rich entry point, yet also a moderating caution signal. Overall, the metric supports the NEUTRAL verdict: the elevated multiple does not justify a bullish stance, while the improving trend prevents a bearish one.

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: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

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.