Stock Analysis on Net

Monolithic Power Systems Inc. (NASDAQ:MPWR)

This company has been moved to the archive! The financial data has not been updated since May 5, 2023.

Capital Asset Pricing Model (CAPM) 

Microsoft Excel

Rates of Return

Monolithic Power Systems Inc., monthly rates of return

Microsoft Excel
Monolithic Power Systems Inc. (MPWR) Standard & Poor’s 500 (S&P 500)
t Date PriceMPWR,t1 DividendMPWR,t1 RMPWR,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $119.12 2,823.81
1. Feb 28, 2018 $117.06 -1.73% 2,713.83 -3.89%
2. Mar 31, 2018 $115.77 $0.30 -0.85% 2,640.87 -2.69%
3. Apr 30, 2018 $117.10 1.15% 2,648.05 0.27%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 $381.96 12.52% 4,080.11 5.38%
59. Dec 31, 2022 $353.61 $0.75 -7.23% 3,839.50 -5.90%
Average (R): 2.52% 0.67%
Standard deviation: 10.75% 5.40%
Monolithic Power Systems Inc. (MPWR) Standard & Poor’s 500 (S&P 500)
t Date PriceMPWR,t1 DividendMPWR,t1 RMPWR,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $119.12 2,823.81
1. Feb 28, 2018 $117.06 -1.73% 2,713.83 -3.89%
2. Mar 31, 2018 $115.77 $0.30 -0.85% 2,640.87 -2.69%
3. Apr 30, 2018 $117.10 1.15% 2,648.05 0.27%
4. May 31, 2018 $131.81 12.56% 2,705.27 2.16%
5. Jun 30, 2018 $133.67 $0.30 1.64% 2,718.37 0.48%
6. Jul 31, 2018 $132.68 -0.74% 2,816.29 3.60%
7. Aug 31, 2018 $149.87 12.96% 2,901.52 3.03%
8. Sep 30, 2018 $125.53 $0.30 -16.04% 2,913.98 0.43%
9. Oct 31, 2018 $118.12 -5.90% 2,711.74 -6.94%
10. Nov 30, 2018 $132.07 11.81% 2,760.17 1.79%
11. Dec 31, 2018 $116.25 $0.30 -11.75% 2,506.85 -9.18%
12. Jan 31, 2019 $126.56 8.87% 2,704.10 7.87%
13. Feb 28, 2019 $134.11 5.97% 2,784.49 2.97%
14. Mar 31, 2019 $135.49 $0.40 1.33% 2,834.40 1.79%
15. Apr 30, 2019 $155.71 14.92% 2,945.83 3.93%
16. May 31, 2019 $116.45 -25.21% 2,752.06 -6.58%
17. Jun 30, 2019 $135.78 $0.40 16.94% 2,941.76 6.89%
18. Jul 31, 2019 $148.16 9.12% 2,980.38 1.31%
19. Aug 31, 2019 $150.56 1.62% 2,926.46 -1.81%
20. Sep 30, 2019 $155.63 $0.40 3.63% 2,976.74 1.72%
21. Oct 31, 2019 $149.92 -3.67% 3,037.56 2.04%
22. Nov 30, 2019 $160.68 7.18% 3,140.98 3.40%
23. Dec 31, 2019 $178.02 $0.40 11.04% 3,230.78 2.86%
24. Jan 31, 2020 $171.17 -3.85% 3,225.52 -0.16%
25. Feb 29, 2020 $158.64 -7.32% 2,954.22 -8.41%
26. Mar 31, 2020 $167.46 $0.50 5.87% 2,584.59 -12.51%
27. Apr 30, 2020 $199.91 19.38% 2,912.43 12.68%
28. May 31, 2020 $209.75 4.92% 3,044.31 4.53%
29. Jun 30, 2020 $237.00 $0.50 13.23% 3,100.29 1.84%
30. Jul 31, 2020 $265.01 11.82% 3,271.12 5.51%
31. Aug 31, 2020 $267.13 0.80% 3,500.31 7.01%
32. Sep 30, 2020 $279.61 $0.50 4.86% 3,363.00 -3.92%
33. Oct 31, 2020 $319.60 14.30% 3,269.96 -2.77%
34. Nov 30, 2020 $319.96 0.11% 3,621.63 10.75%
35. Dec 31, 2020 $366.23 $0.50 14.62% 3,756.07 3.71%
36. Jan 31, 2021 $355.29 -2.99% 3,714.24 -1.11%
37. Feb 28, 2021 $374.52 5.41% 3,811.15 2.61%
38. Mar 31, 2021 $353.21 $0.60 -5.53% 3,972.89 4.24%
39. Apr 30, 2021 $361.38 2.31% 4,181.17 5.24%
40. May 31, 2021 $343.12 -5.05% 4,204.11 0.55%
41. Jun 30, 2021 $373.45 $0.60 9.01% 4,297.50 2.22%
42. Jul 31, 2021 $449.26 20.30% 4,395.26 2.27%
43. Aug 31, 2021 $494.93 10.17% 4,522.68 2.90%
44. Sep 30, 2021 $484.68 $0.60 -1.95% 4,307.54 -4.76%
45. Oct 31, 2021 $525.46 8.41% 4,605.38 6.91%
46. Nov 30, 2021 $553.46 5.33% 4,567.00 -0.83%
47. Dec 31, 2021 $493.33 $0.60 -10.76% 4,766.18 4.36%
48. Jan 31, 2022 $402.93 -18.32% 4,515.55 -5.26%
49. Feb 28, 2022 $458.70 13.84% 4,373.94 -3.14%
50. Mar 31, 2022 $485.68 $0.75 6.05% 4,530.41 3.58%
51. Apr 30, 2022 $392.24 -19.24% 4,131.93 -8.80%
52. May 31, 2022 $450.39 14.83% 4,132.15 0.01%
53. Jun 30, 2022 $384.04 $0.75 -14.57% 3,785.38 -8.39%
54. Jul 31, 2022 $464.72 21.01% 4,130.29 9.11%
55. Aug 31, 2022 $453.18 -2.48% 3,955.00 -4.24%
56. Sep 30, 2022 $363.40 $0.75 -19.65% 3,585.62 -9.34%
57. Oct 31, 2022 $339.45 -6.59% 3,871.98 7.99%
58. Nov 30, 2022 $381.96 12.52% 4,080.11 5.38%
59. Dec 31, 2022 $353.61 $0.75 -7.23% 3,839.50 -5.90%
Average (R): 2.52% 0.67%
Standard deviation: 10.75% 5.40%

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1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of MPWR during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

Monolithic Power Systems Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RMPWR,t RS&P 500,t (RMPWR,tRMPWR)2 (RS&P 500,tRS&P 500)2 (RMPWR,tRMPWR)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 -1.73% -3.89% 18.02 20.81 19.36
2. Mar 31, 2018 -0.85% -2.69% 11.30 11.26 11.28
3. Apr 30, 2018 1.15% 0.27% 1.87 0.16 0.54
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 12.52% 5.38% 100.15 22.17 47.12
59. Dec 31, 2022 -7.23% -5.90% 94.90 43.08 63.94
Total (Σ): 6,704.35 1,691.48 1,905.49
t Date RMPWR,t RS&P 500,t (RMPWR,tRMPWR)2 (RS&P 500,tRS&P 500)2 (RMPWR,tRMPWR)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 -1.73% -3.89% 18.02 20.81 19.36
2. Mar 31, 2018 -0.85% -2.69% 11.30 11.26 11.28
3. Apr 30, 2018 1.15% 0.27% 1.87 0.16 0.54
4. May 31, 2018 12.56% 2.16% 100.93 2.23 15.01
5. Jun 30, 2018 1.64% 0.48% 0.77 0.03 0.16
6. Jul 31, 2018 -0.74% 3.60% 10.60 8.62 -9.56
7. Aug 31, 2018 12.96% 3.03% 109.00 5.57 24.64
8. Sep 30, 2018 -16.04% 0.43% 344.34 0.06 4.40
9. Oct 31, 2018 -5.90% -6.94% 70.87 57.87 64.04
10. Nov 30, 2018 11.81% 1.79% 86.38 1.25 10.40
11. Dec 31, 2018 -11.75% -9.18% 203.55 96.91 140.45
12. Jan 31, 2019 8.87% 7.87% 40.36 51.87 45.75
13. Feb 28, 2019 5.97% 2.97% 11.90 5.32 7.96
14. Mar 31, 2019 1.33% 1.79% 1.41 1.27 -1.34
15. Apr 30, 2019 14.92% 3.93% 153.96 10.66 40.51
16. May 31, 2019 -25.21% -6.58% 768.91 52.48 200.88
17. Jun 30, 2019 16.94% 6.89% 208.14 38.77 89.83
18. Jul 31, 2019 9.12% 1.31% 43.59 0.42 4.27
19. Aug 31, 2019 1.62% -1.81% 0.80 6.13 2.22
20. Sep 30, 2019 3.63% 1.72% 1.25 1.11 1.17
21. Oct 31, 2019 -3.67% 2.04% 38.25 1.89 -8.51
22. Nov 30, 2019 7.18% 3.40% 21.73 7.50 12.76
23. Dec 31, 2019 11.04% 2.86% 72.67 4.81 18.69
24. Jan 31, 2020 -3.85% -0.16% 40.50 0.69 5.28
25. Feb 29, 2020 -7.32% -8.41% 96.75 82.40 89.29
26. Mar 31, 2020 5.87% -12.51% 11.28 173.67 -44.27
27. Apr 30, 2020 19.38% 12.68% 284.33 144.43 202.64
28. May 31, 2020 4.92% 4.53% 5.79 14.91 9.29
29. Jun 30, 2020 13.23% 1.84% 114.80 1.37 12.56
30. Jul 31, 2020 11.82% 5.51% 86.54 23.46 45.06
31. Aug 31, 2020 0.80% 7.01% 2.94 40.19 -10.88
32. Sep 30, 2020 4.86% -3.92% 5.49 21.06 -10.75
33. Oct 31, 2020 14.30% -2.77% 138.92 11.79 -40.47
34. Nov 30, 2020 0.11% 10.75% 5.77 101.77 -24.24
35. Dec 31, 2020 14.62% 3.71% 146.45 9.28 36.86
36. Jan 31, 2021 -2.99% -1.11% 30.28 3.17 9.80
37. Feb 28, 2021 5.41% 2.61% 8.39 3.77 5.63
38. Mar 31, 2021 -5.53% 4.24% 64.73 12.80 -28.78
39. Apr 30, 2021 2.31% 5.24% 0.04 20.94 -0.93
40. May 31, 2021 -5.05% 0.55% 57.28 0.01 0.89
41. Jun 30, 2021 9.01% 2.22% 42.23 2.42 10.10
42. Jul 31, 2021 20.30% 2.27% 316.28 2.59 28.60
43. Aug 31, 2021 10.17% 2.90% 58.52 4.98 17.08
44. Sep 30, 2021 -1.95% -4.76% 19.94 29.42 24.22
45. Oct 31, 2021 8.41% 6.91% 34.79 39.03 36.85
46. Nov 30, 2021 5.33% -0.83% 7.91 2.25 -4.22
47. Dec 31, 2021 -10.76% 4.36% 176.14 13.65 -49.03
48. Jan 31, 2022 -18.32% -5.26% 434.31 35.11 123.48
49. Feb 28, 2022 13.84% -3.14% 128.26 14.46 -43.07
50. Mar 31, 2022 6.05% 3.58% 12.46 8.47 10.27
51. Apr 30, 2022 -19.24% -8.80% 473.27 89.54 205.85
52. May 31, 2022 14.83% 0.01% 151.52 0.44 -8.14
53. Jun 30, 2022 -14.57% -8.39% 291.76 82.06 154.73
54. Jul 31, 2022 21.01% 9.11% 341.97 71.32 156.17
55. Aug 31, 2022 -2.48% -4.24% 24.99 24.11 24.55
56. Sep 30, 2022 -19.65% -9.34% 491.12 100.12 221.75
57. Oct 31, 2022 -6.59% 7.99% 82.92 53.58 -66.65
58. Nov 30, 2022 12.52% 5.38% 100.15 22.17 47.12
59. Dec 31, 2022 -7.23% -5.90% 94.90 43.08 63.94
Total (Σ): 6,704.35 1,691.48 1,905.49

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VarianceMPWR = Σ(RMPWR,tRMPWR)2 ÷ (59 – 1)
= 6,704.35 ÷ (59 – 1)
= 115.59

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,691.48 ÷ (59 – 1)
= 29.16

CovarianceMPWR, S&P 500 = Σ(RMPWR,tRMPWR)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 1,905.49 ÷ (59 – 1)
= 32.85


Systematic Risk (β) Estimation

Microsoft Excel
VarianceMPWR 115.59
VarianceS&P 500 29.16
CovarianceMPWR, S&P 500 32.85
Correlation coefficientMPWR, S&P 5001 0.57
βMPWR2 1.13
αMPWR3 1.76%

Calculations

1 Correlation coefficientMPWR, S&P 500
= CovarianceMPWR, S&P 500 ÷ (Standard deviationMPWR × Standard deviationS&P 500)
= 32.85 ÷ (10.75% × 5.40%)
= 0.57

2 βMPWR
= CovarianceMPWR, S&P 500 ÷ VarianceS&P 500
= 32.85 ÷ 29.16
= 1.13

3 αMPWR
= AverageMPWR – βMPWR × AverageS&P 500
= 2.52%1.13 × 0.67%
= 1.76%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.67%
Expected rate of return on market portfolio2 E(RM) 13.79%
Systematic risk (β) of Monolithic Power Systems Inc. common stock βMPWR 1.13
 
Expected rate of return on Monolithic Power Systems Inc. common stock3 E(RMPWR) 14.94%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 E(RMPWR) = RF + βMPWR [E(RM) – RF]
= 4.67% + 1.13 [13.79%4.67%]
= 14.94%