MPWRNEUTRAL

MPWR P/E Ratio Analysis

84.2x

Updated 6h ago·SEC filings & market data

Key Takeaway

The current P/E ratio of 84.2x means investors pay $84.20 for each $1 of the company's annual earnings.

Sector Performance

94th percentile

MPWR

84.2x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

99.0x(Jul 2026)

↑ Improving

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Deep Analysis

The current P/E ratio of 84.2x means investors pay $84.20 for each $1 of the company's annual earnings.

This is far above the sector median of 23.4x, placing MPWR in the 94th percentile among peer stocks, so it trades richer than nearly all of them. The year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change shows a decline of -14.9%, from 99.0x to 84.2x. A high P/E signals the market expects strong future earnings growth, yet the recent quarterly drop indicates those expectations are easing from an even higher level. That combination of a still-elevated valuation with a cooling trend points to meaningful downside risk if growth disappoints, but also less froth than before. This mixed picture supports the overall NEUTRAL verdict: the expensive multiple leans cautious, while the downward movement offers some balance.

Frequently Asked Questions

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

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 MPWR's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), 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.