Using the industry peer median P/E multiple (trailing + forward), Monolithic Power Systems, Inc. (MPWR) has a fair value of $630.01 based on 5 comparable companies in the Semiconductors industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Monolithic Power Systems, Inc.MPWR | 52,283 | 84.9x | 50.3x |
| Western Digital CorporationWDC | 93,307 | 53.8x | 31.0x |
| Seagate Technology Holdings plcSTX | 83,285 | 56.4x | 29.5x |
| Electronic Arts Inc.EA | 50,644 | 47.8x | 23.6x |
| NXP Semiconductors N.V.NXPI | 50,263 | 25.0x | 15.2x |
| Garmin Ltd.GRMN | 45,583 | 27.6x | 33.5x |
| Industry Median | 47.8x | 29.5x | |
| (*) Profit after tax | 616 | 1,039 | |
| Equity Value | 29,467 | 31,403 | |
| (/) Outstanding shares | 48 | 48 | |
| Fair Price | $610 | $650 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.