MPWR
Monolithic Power Systems Inc
Price:  
741.17 
USD
Volume:  
450,577
United States | Semiconductors & Semiconductor Equipment

MPWR Fair Value

28.8 %
Upside

What is the fair value of MPWR?

As of 2025-07-08, the Fair Value of Monolithic Power Systems Inc (MPWR) is 954.44 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 741.17 USD, the upside of Monolithic Power Systems Inc is 28.8%.

Is MPWR a good investment?

With the market price of 741.17 USD and our fair value calculation, Monolithic Power Systems Inc (MPWR) is a good investment. Investing in MPWR stocks now will result in a potential gain of 28.8%.

741.17 USD
Stock Price
954.44 USD
Fair Price
FAIR VALUE CALCULATION

MPWR Fair Value

Peter Lynch's formula is:

MPWR Fair Value
= Earnings Growth Rate x TTM EPS
MPWR Fair Value
= 25 x 38.18
MPWR Fair Value
= 954.44

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income164.4242437.7427.371,786.7612
YoY growth51.1%47.2%80.9%-2.4%318.1%99%

MPWR Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Maxim Integrated Products Inc27,7003.115.66-84.8%
First Solar Inc18,98811.8294.8966.5%
Qorvo Inc8,0970.69.74-88.8%
Universal Display Corp7,388665.79-57.6%
Cirrus Logic Inc5,4745.9147.9339.3%
Semtech Corp3,690-1.4-6.89-116.2%
Power Integrations Inc3,1780.73.29-94.2%
Synaptics Inc2,5654.3107.1361%
Diodes Inc2,5340.63.3-94%
Silicon Motion Technology Corp2,4312.870.35-4.7%

MPWR Fair Value - Key Data

Market Cap (mil)35,487
P/E19.4x
Forward P/E54.5x
EPS38.18
Avg earnings growth rate99%
TTM earnings1,828

MPWR Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.