The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Microchip Technology's share price is $75.58.
Microchip Technology's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was $12.06. Hence, Microchip Technology's PS Ratio for today is 6.27.
The historical rank and industry rank for Microchip Technology's PS Ratio or its related term are showing as below:
MCHP'
s PS Ratio Range Over the Past 10 Years
Min: 2.88 Med: 5.21 Max: 8.1
Current: 6.27
During the past 13 years, Microchip Technology's highest PS Ratio was 8.10. The lowest was 2.88. And the median was 5.21.
MCHP's PS Ratio is ranked worse than 72.3% of 989
companies
in the Semiconductors industry
Industry Median: 3
vs MCHP: 6.27
Microchip Technology Inc revenue per share is in decline over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Microchip Technology was -23.70% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 11.50% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 7.90% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 13.40% per year.
During the past 13 years, Microchip Technology's highest 3-Year average Revenue per Share Growth Rate was 28.90% per year. The lowest was -1.90% per year. And the median was 12.40% per year.
Back to Basics: PS Ratio
Microchip Technology PS Ratio Historical Data
The historical data trend for Microchip Technology's PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Microchip Technology's PS Ratio
For the Semiconductors subindustry, Microchip Technology's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microchip Technology's PS Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's PS Ratio distribution charts can be found below:
* The bar in red indicates where Microchip Technology's PS Ratio falls into.
Microchip Technology PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Microchip Technology's Share Price of today is $75.58. Microchip Technology's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.06.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
Microchip Technology (NAS:MCHP) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Microchip Technology PS Ratio Related Terms
Thank you for viewing the detailed overview of Microchip Technology's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
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