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Is this Large Market Cap Stock target price reasonable for Microchip Technology Incorporated (NASDAQ:MCHP) ?

The company in question is, Microchip Technology Incorporated (NASDAQ:MCHP) currently with a stock price of 74.86 (0.98% today). The market cap for Microchip Technology Incorporated is 16201.95, and is in the sector Technology, and Semiconductor – Broad Line industry. The target price for Microchip Technology Incorporated is 85.12. Currently Microchip Technology Incorporated is trading with a P/E of 183.48, and a forward P/E of 16.62. Average volume for Microchip Technology Incorporated is 3543.4 and so far today it is 3275100.

Performance in the last year for Microchip Technology Incorporated has been 58.03%. For EPS growth, Microchip Technology Incorporated has seen a growth of -9.70%, and is looking to grow in the next year to 15.69%. More long term stats show that EPS growth has been -7.50% over the last five years and could be 22.31% for the next five years. Microchip Technology Incorporated has seen sales growth quarter over quarter at 54.40%, with EPS growth quarter over quarter at 62.40%. The 20-day simple moving average is 2.25%, with the 200-day simple moving average coming to 17.25%.

Since the IPO date for Microchip Technology Incorporated on the 3/19/1993, Microchip Technology Incorporated has seen performance year to date to be 17.28%. With Microchip Technology Incorporated trading at 74.86, the dividend yield is 1.92%, and the EPS is 0.41.

So could Microchip Technology Incorporated, be undervalued? Well as said before P/E is 183.48. The PEG is 8.23, P/S is 5.29 and the P/B is at 6.31. The P/cash is 24.2, with P/free cash flow at 28.69.

Microchip Technology Incorporated ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 1.9. This is with long term debt/equity at 1.22, and total debt/equity at 1.22.

In terms of margins, Microchip Technology Incorporated has a gross margin of 49.90%, an operating margin of 6.60% and a profit margin of 3.10%.Payout ratio for Microchip Technology Incorporated is 316.40%. Return on assets come to 1.40% with return on investment coming to 8.60%.

Insider ownership for Microchip Technology Incorporated, is at 2.38% and institutional ownership comes to 98.80%. Outstanding shares are at 216.43. While shares float is 211.23. The float short is currently 10.38%, and short ratio is 6.19.

Graphs: Microchip Technology Incorporated NASDAQ: MCHP | Thursday April 20, 2017

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Microchip Technology Incorporated NASDAQ: MCHP

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Microchip Technology Incorporated NASDAQ: MCHP

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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