Question 1

What is Microchip Technology's P/FCF ratio?

Accepted Answer

Microchip Technology (MCHP) P/FCF ratio is 53.5× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Microchip Technology?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Microchip Technology specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Microchip Technology's P/FCF ratio high or low?

Accepted Answer

Microchip Technology's P/FCF ratio of 53.5× is above its own 5-year average of 24.8× and above the sector median of 21.8×. That places the current reading at the 94th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Microchip Technology's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Microchip Technology (MCHP) P/FCF ratio has ranged from a low of 11.0× in 2020 to a high of 68.5× in 2026. The 5-year average is 24.8× and the 5-year median is 21.6×.

Question 7

What was Microchip Technology's P/FCF ratio in 2026?

Accepted Answer

Microchip Technology (MCHP) P/FCF ratio at the end of 2026 was 40.2×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Microchip Technology's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2026	$35B	$871M	40.2×	+6.5×	Mar 31, 2026
2025	$26B	$772M	33.7×	+15.1×	Mar 31, 2025
2024	$48.4B	$2.61B	18.5×	+3.9×	Mar 31, 2024
2023	$45.8B	$3.13B	14.6×	-2.3×	Mar 31, 2023
2022	$41.7B	$2.47B	16.9×	-6.2×	Mar 31, 2022
2021	$42.1B	$1.82B	23.1×	+12.1×	Mar 31, 2021
2020	$16.3B	$1.48B	11.0×	-3.3×	Mar 31, 2020
2019	$20.7B	$1.45B	14.3×	-3.3×	Mar 31, 2019
2018	$21.4B	$1.21B	17.7×	+1.0×	Mar 31, 2018
2017	$16.4B	$984M	16.7×	+1.5×	Mar 31, 2017
2016	$9.82B	$647M	15.2×	-2.1×	Mar 31, 2016
2015	$9.86B	$572M	17.3×	+0.2×	Mar 31, 2015
2014	$9.53B	$558M	17.1×	-0.9×	Mar 31, 2014
2013	$7.11B	$395M	18.0×	-3.5×	Mar 31, 2013
2012	$7.16B	$334M	21.4×	+5.9×	Mar 31, 2012
2011	$7.12B	$458M	15.5×	+2.7×	Mar 31, 2011
2010	$5.2B	$404M	12.9×	-5.9×	Mar 31, 2010
2009	$3.87B	$206M	18.7×	+2.2×	Mar 31, 2009
2008	$6.25B	$377M	16.6×	-4.4×	Mar 31, 2008
2007	$7.75B	$370M	21.0×	-0.3×	Mar 31, 2007
2006	$7.69B	$361M	21.3×	+2.7×	Mar 31, 2006
2005	$5.39B	$289M	18.6×	-0.9×	Mar 31, 2005
2004	$5.46B	$280M	19.5×	-3.0×	Mar 31, 2004
2003	$4.05B	$180M	22.5×	-19.8×	Mar 31, 2003
2002	$5.68B	$134M	42.4×	—	Mar 31, 2002


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Microchip Technology (MCHP) 2002-2026

P/FCF Ratio daily chart for Microchip Technology (MCHP)

Historical P/FCF Ratio for Microchip Technology (MCHP) from 2002 to 2026

About P/FCF Ratio at Microchip Technology (MCHP)

Microchip Technology P/FCF Ratio by Year

Microchip Technology P/FCF Ratio 2026: 40.2×

Microchip Technology P/FCF Ratio 2025: 33.7×

Microchip Technology P/FCF Ratio 2024: 18.5×

Microchip Technology P/FCF Ratio 2023: 14.6×

Microchip Technology P/FCF Ratio 2022: 16.9×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Microchip Technology (MCHP) Key Financials