Micron Technology, Inc. (MU) Intrinsic Value & DCF Valuation
Semiconductors · NASDAQ
Current Price
$1067.76
Intrinsic Value
Outside reliable range
What Is Micron Technology, Inc.'s Intrinsic Value?
The base-case DCF model produces an intrinsic value estimate for Micron Technology, Inc. (MU) that falls outside its reliable range, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How the 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 the reliable range, no undervalued or overvalued read is given here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Economies of Scale in Manufacturing
Micron's massive production capacity and advanced manufacturing processes create significant cost advantages. This scale allows for lower per-unit costs, making it difficult for smaller competitors to match.
↑Intellectual Property and R&D Investment
Substantial investment in research and development yields proprietary technologies and patents. This IP portfolio protects its product designs and manufacturing techniques from imitation.
↑Customer Relationships and Supply Chain Integration
Long-standing relationships with major customers and deep integration into their supply chains create switching costs. These partnerships ensure consistent demand and provide insights into future needs.
INVESTMENT RISKS
↓Intensifying Competition and Pricing Pressure
The semiconductor industry is highly competitive, with rivals constantly innovating and potentially engaging in aggressive pricing. This can erode market share and profitability.
↓Geopolitical Tensions and Trade Restrictions
Global geopolitical tensions, particularly concerning China, can lead to trade restrictions, tariffs, and supply chain disruptions. This impacts Micron's access to markets and manufacturing.
↓Rapid Technological Obsolescence
The pace of technological advancement in semiconductors is extremely rapid. Failure to innovate and adapt quickly can lead to products becoming obsolete, impacting future demand.
Base case
MU base case valuation
Base case assumptions: 20.0% annual growth, 10.0% discount rate, 22.79x exit multiple, 5 year projection. Data as of 2026-10-08.
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)
$117.87
FCF/Share (TTM)
$46.82
ROIC (TTM)
50.4%
ROE (TTM)
91.8%
P/FCF
23.2x
EV/EBITDA
10.7x
FCF Yield
4.39%
Debt/Equity
0.04x
Based on trailing twelve-month data, MU shows a free cash flow per share of $46.82 and a ROIC of 50.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 23.2x and FCF yield of 4.39% 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 $46.82 in free cash flow per share. At the current price of $1067.76, 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 23.2x with a free cash flow yield of 4.39%. This P/FCF is in a moderate range. 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 ($46.82) 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 0.04x, 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 50.4% reflects how efficiently the company converts invested capital into profit.
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 0.04x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.7x, 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 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.