What is Monolithic Power Systems, Inc. (MPWR) DCF Fair Value and Intrinsic Value in 2026?

Monolithic Power Systems, Inc. (MPWR) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Monolithic Power Systems, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Monolithic Power Systems, Inc. operates in the Technology sector (Semiconductors) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Monolithic Power Systems, Inc.'s financial health rating and Piotroski F-Score?

Monolithic Power Systems, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Monolithic Power Systems, Inc. (MPWR) for quarterly SEC filing thesis breaks?

LocalAlpha audits Monolithic Power Systems, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksMPWR

MPWR

Monolithic Power Systems, Inc.Technology / SemiconductorsINTACT

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.

Share Price

$1234.46

52W: $831 - $1714.09

DCF Fair Value

$290.09

-325.5% Premium

Thesis Hub

P/E (TTM)

75.4x

ROIC

23.3%

Operating Margin

31%

FCF Yield

0.7%

Debt / Equity

Piotroski Score

7/9

Altman Z-Score

2.87

Market Cap

$60.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($290.09)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$290.09

MOS Buy Target (-25%)

$217.57

Valuation Overlays: DCF Fair Value ($290.09) 25% MOS Buy Target ($217.57) Revised Graham ($477.19) Graham Number ($170.87)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$1234.46

DCF Fair Value

$290.69

-324.7% Premium

Starting Free Cash Flow ($M)$444M

$100M$444M (Reported)$50,000M

Stage 1 Growth (Years 1-5)15.5%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$1,400M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$5.3B

PV of Terminal Value

$7.6B

Implied Enterprise Value

$12.8B

Implied Equity Value

$14.2B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$513	$592	$684	$790	$913	$954	$997	$1,041	$1,088	$1,137
Present Value (PV)	$470	$499	$528	$560	$593	$569	$545	$523	$501	$480

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-622.5% Premium

$170.87

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $16.37BVPS: $79.27

Revised Graham Formula-158.7% Premium

$477.19

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings0.7% Yield

$8.61 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.4BYield: 0.7%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER

31.6% CAGR (Next 10 Yrs)

At the current price of $1234.46, the market is assuming the business will compound Free Cash Flow at 31.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil MPWR with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Monolithic Power Systems, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 31% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Monolithic Power Systems, Inc. (MPWR) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Monolithic Power Systems, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Monolithic Power Systems, Inc. has an estimated DCF intrinsic fair value of $290.09 per share compared to its current market price of $1234.46. This represents an estimated 325.5% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $170.87.