| Intrinsic Valuation of: MCHP | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 0 | Market Cap | $51B | |||||
| 2021 | - | - (-) | P/E Ratio | 427 | Total Asset | $15B | |||||
| 2022 | $2B | - (-) | Net Income | $-500,000 | Total Debt | $6B | |||||
| 2023 | $3B | 26.8% (2.5%) | EBITDA | $1B | Total Liab | $8B | |||||
| 2024 | $3B | -16.8% (-8.1%) | Opr Margin | 8.53 | Debt/Equity | 0.80 | |||||
| 2025 | $772M | -70.4% (-48.6%) | PreTax Margin | 2.82 | BV/Share | -4 | |||||
| 5Y Average FCF | $2B | -2.0% (-18.1%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 1.00% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 12.17% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (-2.0%) | ||||||||||
| 2026 | $1B | MBG Intrinsic Value | $2 | ||||||||
| 2027 | $1B | ||||||||||
| 2028 | $1B | ||||||||||
| 2029 | $1B | ||||||||||
| 2030 | $1B | ||||||||||
| 2031 | $1B | ||||||||||
| Terminal Value | $11B | Net Worth/Share | $13 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $10B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $772M | $10 | 1.0% | 1.2% | 1.5% | 1.8% | 2.0% | ||||
| (-) Total Debt | $6B | WACC | 10.2% | 14 | 14 | 15 | 15 | 16 | |||
| Equity Value | $5B | 11.1% | 12 | 12 | 12 | 13 | 13 | ||||
| Shares Outstanding | 541,135,458 | 12.1% | 10 | 10 | 10 | 11 | 11 | ||||
| 13.0% | 8 | 9 | 9 | 9 | 9 | ||||||
| DCF Intrinsic Value | $10 | 14.0% | 7 | 7 | 8 | 8 | 8 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||