Micron Technology, Inc. (MU) Intrinsic Value & DCF Valuation
Semiconductors · NASDAQ
Current Price
$981.61
Intrinsic Value
Outside reliable range
What Is Micron Technology, Inc.'s Intrinsic Value?
Our base-case DCF model produces an intrinsic value estimate for Micron Technology, Inc. (MU) that falls outside the range we consider reliable, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Micron Technology, Inc. (MU) Undervalued?
Because the model output for MU is outside our reliability range, we do not give an undervalued or overvalued read here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑AI-driven HBM demand
Micron is capitalizing on surging demand for High Bandwidth Memory (HBM) driven by AI. This specialized product offers strong margins and revenue momentum.
↑Customer dependency
Customers are receiving only a fraction of their requested chip supply. This indicates significant demand exceeding Micron's current production capacity, creating leverage.
↑Strong gross margins
Micron is achieving exceptionally high gross margins, suggesting efficient operations and pricing power in its key product segments. This profitability fuels reinvestment.
INVESTMENT RISKS
↓Valuation concerns
High investor expectations and recent stock performance may lead to valuation concerns. A slight miss on earnings could trigger a significant price correction.
↓Cyclical industry
The semiconductor industry is inherently cyclical. A downturn in demand or oversupply could quickly erode Micron's current strong position and margins.
↓Intense competition
Micron faces fierce competition from established players and emerging technologies. Maintaining its edge requires continuous innovation and significant R&D investment.
Base case
MU base case valuation
Base case assumptions: 20.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MU valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Micron Technology, Inc. respond.
Open DCF Calculator for MUCompany Overview
Micron Technology, Inc. is a global leader specializing in the development, manufacture, and sale of advanced semiconductor memory and storage solutions. Its operations are structured across four primary business segments: Compute and Networking, Mobile, Storage, and Embedded. The company's product portfolio encompasses a range of memory and data storage technologies. These include high-speed, low-latency Dynamic Random Access Memory (DRAM) components for rapid data retrieval; non-volatile, re-programmable NAND flash storage devices; and fast-read, non-volatile, re-writable NOR memory chips. These innovative solutions are offered under its well-known Micron and Crucial brands, as well as through private label partnerships. Micron's extensive offerings cater to a diverse array of markets and applications. This includes critical infrastructure like cloud servers and enterprise data centers, personal computing (client and graphics), mobile devices such as smartphones, networking equipment, automotive systems, industrial applications, and various consumer electronics. The company utilizes a multi-faceted approach to market its products, employing a direct sales force, independent sales representatives, and a network of distributors and retailers. Additionally, it leverages a web-based direct sales channel and collaborates with various channel and distribution partners. Founded in 1978, Micron Technology, Inc. is headquartered in Boise, Idaho.
Financial Metrics — MU Stock Valuation Data
Revenue/Share (TTM)
$51.66
FCF/Share (TTM)
$9.14
ROIC (TTM)
27.7%
ROE (TTM)
40.8%
P/FCF
107.7x
EV/EBITDA
29.8x
FCF Yield
0.93%
Debt/Equity
0.15x
Based on trailing twelve-month data, MU shows a free cash flow per share of $9.14 and a ROIC of 27.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 107.7x and FCF yield of 0.93% are important context metrics when evaluating MU's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of MU?
Micron Technology, Inc. currently generates $9.14 in free cash flow per share. At the current price of $981.61, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is MU undervalued?
MU trades at a P/FCF ratio of 107.7x with a free cash flow yield of 0.93%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether MU is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value MU stock using DCF?
To perform a DCF valuation on Micron Technology, Inc.: (1) Start with the trailing free cash flow per share ($9.14) as the base, (2) project future FCF growth over 5-10 years based on Semiconductors industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MU's risk profile — with a debt-to-equity of 0.15x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to MU?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Micron Technology, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Semiconductors trends, then discounting those amounts to today's dollars. MU's ROIC of 27.7% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
How does WACC affect MU stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MU, with a debt-to-equity ratio of 0.15x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 29.8x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See MU PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value MU with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.