Monolithic Power Systems (MPWR)
Technology · NASDAQ · US
Fundamentals
Valuation and ratings
Monolithic Power Systems trades at $1,305.65, which is 59% above the $541.10 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 83 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 97.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Monolithic Power Systems
Monolithic Power Systems, Inc. provides semiconductor-based power electronics solutions in China, Taiwan, South Korea, Southeast Asia, Europe, the United States, Japan, and internationally. The company offers direct current (DC) to DC solutions to convert and control voltages within a range of electronic systems, such as cloud-based and on-premises CPU servers and workstations, AI systems, memory, storage solutions, notebooks, infotainment, power sources, home appliances, network infrastructure, and satellite communications. It also provides alternating current (AC) to DC; driver metal-oxide-semiconductor field-effect transistors; power management integrated circuits (ICs); and current limit switch and lighting control products. The company serves storage and computing, enterprise data, automotive, communications, consumer, and industrial end markets through third-party distributors and value-added resellers. Monolithic Power Systems, Inc. was incorporated in 1997 and is based in West Palm Beach, Florida.
MPWR passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Monolithic Power Systems (MPWR) undervalued?
Against our discounted cash flow estimate of $541.10, MPWR at $1,305.65 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is MPWR's P/E ratio?
MPWR trades at 97.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.