Micron Technology, Inc. (MU) Stock Valuation — PE Analysis
Semiconductors · NASDAQ
Current Price
$1045.56
PE Ratio (TTM)
14.4x
Intrinsic Value
Outside reliable range
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 PE valuation
Base case assumptions: 20.0% annual earnings growth, 13.91x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MU PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Micron Technology, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
14.4x
PEG Ratio
0.02
Earnings Yield
7.19%
ROE (TTM)
91.8%
Revenue/Share (TTM)
$117.87
Dividend Yield
0.05%
Debt/Equity
0.04x
Frequently Asked Questions
What is the PE ratio of MU?
The trailing twelve-month PE ratio of MU reflects how much investors pay per dollar of Micron Technology, Inc.'s earnings. This metric is most useful when compared to Semiconductors peers and the company's own historical range.
Is MU overvalued based on PE ratio?
MU's PE of 14.4x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Semiconductors, a DCF analysis may be more appropriate.
How do I value MU stock using PE ratio?
To value Micron Technology, Inc. using PE: (1) Compare the current PE (14.4x) against the Semiconductors median to assess relative pricing, (2) check the PEG ratio (0.02) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MU?
MU's PEG ratio is 0.02, calculated by dividing the PE ratio (14.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MU stock valuation?
PE ratio gives a quick relative read — how MU is priced versus Semiconductors peers. DCF provides an absolute value based on projected free cash flows. For MU, with a strong ROE of 91.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MU DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value MU with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.