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 FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Microchip Technology Inc., FCFF 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
Net noncash charges 1,523,000 1,594,100 1,039,900 1,134,200 899,700 590,644
Changes in operating assets and liabilities, excluding impact of acquisitions 34,200 (27,000) (66,700) 184,700 264,500 294,821
Net cash provided by operating activities 2,842,700 1,916,500 1,543,800 1,674,800 1,419,600 1,050,104
Cash paid for interest, net of tax1 180,183 209,666 280,608 274,841 29,548 —
Capital expenditures (370,100) (92,600) (67,600) (228,900) (206,800) (75,310)
Free cash flow to the firm (FCFF) 2,652,783 2,033,566 1,756,808 1,720,741 1,242,348 974,794

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).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Microchip Technology Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Microchip Technology Inc. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

Microchip Technology Inc., interest paid, net of tax 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
Effective Income Tax Rate (EITR)
EITR1 13.29% 21.00% 21.00% 21.00% 65.36% 35.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax 207,800 265,400 355,200 347,900 85,300 —
Less: Cash paid for interest, tax2 27,617 55,734 74,592 73,059 55,752 —
Cash paid for interest, net of tax 180,183 209,666 280,608 274,841 29,548 —

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).

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2 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 207,800 × 13.29% = 27,617

Enterprise Value to FCFF Ratio, Current

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

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 53,673,187
Free cash flow to the firm (FCFF) 2,652,783
Valuation Ratio
EV/FCFF 20.23
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 185.28
Analog Devices Inc. 29.57
Applied Materials Inc. 18.17
Broadcom Inc. 41.37
First Solar Inc. —
Intel Corp. —
KLA Corp. 25.88
Lam Research Corp. 21.35
Micron Technology Inc. 195.82
NVIDIA Corp. 130.55
Qualcomm Inc. 14.51
Texas Instruments Inc. 112.48
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 107.20
EV/FCFF, Industry
Information Technology 51.03

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

1 Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

Microchip Technology Inc., historical EV/FCFF 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
Free cash flow to the firm (FCFF)2 2,652,783 2,033,566 1,756,808 1,720,741 1,242,348 974,794
Valuation Ratio
EV/FCFF3 16.71 23.40 17.43 16.99 18.26 21.11
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 38.82 43.41 126.98 169.58 — —
Analog Devices Inc. 23.12 39.16 27.12 21.68 16.04 —
Applied Materials Inc. 19.06 26.22 22.52 18.91 9.96 —
Broadcom Inc. 14.74 19.47 16.54 15.04 13.02 —
First Solar Inc. — — — — — —
Intel Corp. — 16.94 11.08 17.39 — —
KLA Corp. 19.05 26.29 18.70 20.92 — —
Lam Research Corp. 24.08 24.40 26.78 10.44 — —
Micron Technology Inc. 16.58 28.79 188.88 13.85 — —
NVIDIA Corp. 78.06 69.50 41.66 27.89 — —
Qualcomm Inc. 18.18 17.47 30.89 14.91 — —
Texas Instruments Inc. 27.05 24.23 27.67 20.75 — —
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 35.30 26.37 22.20 18.38 — —
EV/FCFF, Industry
Information Technology 27.25 28.19 24.28 19.87 — —

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).

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2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 44,336,602 ÷ 2,652,783 = 16.71

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Microchip Technology Inc. EV/FCFF ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.