Growth & Assumptions

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Market & Balance Sheet Data

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Cash Flow Projection

Year2027202820292030203120322033203420352036
Free Cash Flow859.931,269.261,873.432,765.184,081.414,931.975,959.797,201.818,702.6710,516.31
Terminal Value---------135,397.47
Cumulated PVRunning Sum774.711,804.873,174.714,996.227,418.3310,055.1712,925.7516,050.8119,452.970,841.46
* Scroll horizontally for more yearsAll figures in USD Millions

Valuation Breakdown

Enterprise Value (EV)$70,841.46
(+) Cash & Investments$1,413.76
(-) Total Debt$18.93
Equity Value$72,236.29
Shares Outstanding49.14
Fair Value Per Share$1,470.01
All figures in USD Millions

Calculated Fair Value

$1470.01
Current Price$1,213.65
Margin of Safety+21.12%
Buy

MPWR (MPWR) DCF Valuation Analysis

Independent intrinsic value calculation based on latest financial reports.

Potentially Undervalued

Our MPWR DCF calculator utilizes a two-stage Discounted Cash Flow model to estimate the true value of MPWR stock. As of the most recent quarterly report (6/30/2026), MPWR generated $582,609,000 in Trailing Twelve Month (TTM) Free Cash Flow.

Key Valuation Metrics for MPWR

Forward P/E
34.88
Price to Book
15.31
Margin of Safety
21.1%
Intrinsic Value
$1,470.01

By discounting MPWR's future cash flows using an expected return of 11%, we can determine if the stock is currently trading at a margin of safety. A positive margin of safety suggests that market expectations may be too low relative to the company's historical cash flow productivity.

Final Verdict

For MPWR to be considered a fair investment at current levels, it would need to sustain a cash flow growth rate of approximately 47.60% for the next five years. This valuation model accounts for MPWR's current cash position of $1,413,761,024 and total debt of $18,934,000. With a fair value of $1,470.01, MPWR shows potential upside for long-term investors.

Why use DCF for MPWR?

Discounted Cash Flow is widely considered the most accurate method for valuing mature companies like MPWR. Using our Free DCF Calculator, you can customize every assumption in this model to see how it affects the intrinsic value.

Based on Owner Earnings (FCF)
Includes Balance Sheet adjustments
Customizable growth assumptions

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