Monolithic Power Systems, Inc. (MPWR) DCF Valuation
Transparent DCF models put Monolithic Power Systems, Inc. (MPWR)'s fair value in a range of $195.56 – $242.72 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $1,531.98 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $1,531.98, the market is pricing in roughly +35.0%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +22.4%. The price is betting on acceleration above its track record.
Current Price
$1,531.98
Fair-Value Range
$195.56 – $242.72
Market-Implied Growth
+35.0%/yr
vs +22.4% 5Y actual
MPWR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $519.2M · 0.05B shares · net cash $1.1B
Estimated Fair Value
$195.56
-87.2% vs $1531.98
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $1531.98; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $238 | $249 | $262 | $277 | $297 |
| 9.0% | $207 | $215 | $224 | $234 | $246 |
| 10.0% | $184 | $189 | $196 | $203 | $211 |
| 11.0% | $166 | $170 | $174 | $179 | $185 |
| 12.0% | $151 | $154 | $157 | $161 | $165 |
About Monolithic Power Systems, Inc.
Monolithic Power Systems, Inc. specializes in the creation, promotion, and sale of advanced semiconductor components for power management. Their innovative solutions cater to a broad spectrum of industries, including information technology, data storage, automotive, industrial applications, telecommunications, and consumer electronics. A core offering consists of direct current (DC) to DC integrated circuits (ICs), which are vital for regulating and transforming electrical voltages in diverse systems such as portable gadgets, wireless local area network access points, personal computers, displays, car entertainment systems, and medical devices. Additionally, they provide integrated circuits specifically designed for lighting control, essential for illuminating liquid crystal display (LCD) panels in laptops, monitors, vehicle navigation systems, and televisions, alongside general illumination products. The company reaches its clientele, which includes major equipment manufacturers, design firms, and electronics assembly providers, as well as other customers, through both direct sales and an extensive network of distributors and resellers across key global regions like China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and beyond. Founded in 1997, the company's headquarters are situated in Kirkland, Washington.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Michael R. Hsing