MCHPNEUTRAL

MCHP P/E Ratio Analysis

113.5x

Updated 221h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 118.6x means investors pay $118.60 for every $1 of the company’s trailing earnings, a measure of how expensive the stock is relative to its profit generation.

Sector Performance

96th percentile

MCHP

113.5x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

118.6x(Aug 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 118.6x means investors pay $118.60 for every $1 of the company’s trailing earnings, a measure of how expensive the stock is relative to its profit generation.

This is far above the sector median of 23.2x and sits at the 96th percentile among sector peers, indicating the market assigns a premium valuation to this company. The trend data is N/A, with both the year-over-year change and quarter-over-quarter change marked as N/A, so no direction can be established from past movements. The combination of a very high P/E with no available trend information leaves the risk profile unclear but tilts toward downside risk if earnings do not grow to justify the premium. This metric contradicts the overall NEUTRAL verdict, as the extreme valuation multiple suggests the stock is more likely overpriced than fairly valued. Therefore, the P/E ratio alone does not support a neutral stance and instead points toward caution.

Frequently Asked Questions

What does the P/E Ratio tell investors about MCHP?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are MCHP's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: BROS (99.7x), WELL (102.4x), IAC (104.9x), FORM (108.1x), MTSI (118.9x).

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.