Stock Analysis on Net
Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Microchip Technology Inc., EBITDA calculation

US$ in thousands

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12 months ended: Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Net income 1,285,500 349,400 570,600 355,900 255,400 164,639
Less: Net loss from discontinued operations — — — — — (5,953)
Add: Income tax expense 197,000 (9,900) (420,200) (151,400) 481,900 (80,805)
Earnings before tax (EBT) 1,482,500 339,500 150,400 204,500 737,300 89,787
Add: Interest expense 257,000 356,900 497,300 502,900 199,000 146,346
Earnings before interest and tax (EBIT) 1,739,500 696,400 647,700 707,400 936,300 236,133
Add: Depreciation and amortization 1,143,500 1,153,300 1,215,600 876,400 615,900 469,208
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,883,000 1,849,700 1,863,300 1,583,800 1,552,200 705,341

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Microchip Technology Inc. EBITDA decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Enterprise Value to EBITDA Ratio, Current

Microchip Technology Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 53,673,187
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,883,000
Valuation Ratio
EV/EBITDA 18.62
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 54.09
Analog Devices Inc. 17.96
Applied Materials Inc. 16.45
Broadcom Inc. 38.31
First Solar Inc. 15.07
Intel Corp. 11.76
KLA Corp. 21.68
Lam Research Corp. 18.20
Micron Technology Inc. 11.95
NVIDIA Corp. 99.95
Qualcomm Inc. 13.56
Texas Instruments Inc. 20.36
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 44.33
EV/EBITDA, Industry
Information Technology 34.79

Based on: 10-K (reporting date: 2022-03-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Microchip Technology Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 44,336,602 47,583,914 30,624,300 29,229,042 22,683,106 20,577,617
Earnings before interest, tax, depreciation and amortization (EBITDA)2 2,883,000 1,849,700 1,863,300 1,583,800 1,552,200 705,341
Valuation Ratio
EV/EBITDA3 15.38 25.73 16.44 18.46 14.61 29.17
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. 22.63 34.19 62.10 82.59 — —
Analog Devices Inc. 16.23 38.55 23.61 18.67 14.37 —
Applied Materials Inc. 11.04 17.54 16.82 14.60 6.24 —
Broadcom Inc. 13.54 19.72 18.89 16.32 12.20 —
First Solar Inc. 53.82 7.64 12.99 32.49 — —
Intel Corp. 6.20 6.02 6.40 8.73 — —
KLA Corp. 14.97 19.26 18.10 14.14 — —
Lam Research Corp. 11.36 16.94 18.35 10.69 — —
Micron Technology Inc. 3.26 6.05 6.46 3.90 — —
NVIDIA Corp. 57.58 58.98 52.92 21.08 — —
Qualcomm Inc. 7.84 12.76 19.49 10.55 — —
Texas Instruments Inc. 14.69 15.54 21.75 17.73 — —
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 14.60 15.47 14.72 11.61 — —
EV/EBITDA, Industry
Information Technology 18.58 20.64 19.71 14.59 — —

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 44,336,602 ÷ 2,883,000 = 15.38

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Microchip Technology Inc. EV/EBITDA ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.