Pricing Log in Create free account
Friday 6 November 2026 Export MPWR’s income statement to Excel — free account

Monolithic Power Systems, Inc.

MPWR Technology Semiconductors

Monolithic Power Systems, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.8 billion, up 26.4% from fiscal 2024.

Revenue
+63.1%
EPS
+48.7%
Free cash flow
+1,311.6%

Quarter to September 2026, against a year earlier

1,186.44 55.01 +4.86%
Market cap
$55.2B
P/E
63.4×
Fwd P/E
56.0×
Dividend yield
0.65%
F-score
6/9
Altman Z
42.05
Beneish M
−2.48
Dividend safety
88/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Monolithic Power Systems, Inc. (MPWR) valuation and DCF model

What the price implies · reverse DCF

At $1,186.44 the price implies free cash flow after share-based pay growing 33.9% a year for ten years.

Free cash flow after share-based pay grew 41.2% a year over the last ten years, 39.1% over the last five. The price asks for close to its ten-year rate. The industry’s median company is priced for 25.1%.

In December 2017 the price assumed 34.7% a year; Monolithic Power Systems, Inc. went on to grow free cash flow after share-based pay 51.8% a year to FY2025.

Price implies
33.9%
Last 5 years, reported
39.1%
Last 10 years, reported
41.2%
Industry median implies
25.1%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
33.9% a year for ten years
$1,186.44
today’s price
Its base case
25.0% a year for five years, then 15.0%
$459.03
61.3% below today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Monolithic Power Systems, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to September 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing 33.9% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Monolithic Power Systems, Inc.’s own cost of capital: risk-free 4.3% + beta 1.73 × equity premium 4.5% = 12.1% cost of equity; weighted, 12.1%.

Use 12.1%
Equity value $22.49b ▼ below market cap $58.13b
Base case value per share $459.03 equity value ÷ 49.00m shares
Current price $1,186.44 market price per share
Below today’s price 61.3% downside at the base case’s assumptions

How we got there$6.88b 10 years of cash to equity+$14.52b terminal value+$1.09b net cash=$22.49b equity value÷49.00m shares=$459.03 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Semiconductors).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 63.39× 51.20× 64.09× 1% below 36.98× 71% above
P/FCF 93.73× 68.34× 69.16× 36% above 43.80× 114% above
P/B 15.17× 12.18× 12.29× 23% above 3.87× 292% above
EV/EBITDA 47.70× 46.55× 53.95× 12% below 20.84× 129% above
EV/Sales 14.86× 13.27× 13.21× 13% above 5.07× 193% above
P/E P/FCF P/B EV/EBITDA EV/Sales
27.62×49.74×71.87×94.00×10Y avg 64.09×2017201820192020202120222023202420252026

MPWR trades at 63.39× P/E, against a 10-year average of 64.09× (range 17.99×–100.06×). That is cheaper than 67% of the last 9 year-end readings; re-rating to the average implies $1,199.48 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.