Micron Technology, Inc. (MU) Stock Valuation — PE Analysis
Semiconductors · NASDAQ
Current Price
$981.61
PE Ratio (TTM)
45.8x
Intrinsic Value
$1,664.02
+41.0% margin of safety
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 PE valuation
A base case PE valuation for MU estimates a fair value of about $1,664.02 per share, against a current price of $981.61. The model assumes 20.0% annual earnings growth, a 46x target PE multiple, and a 10% discount rate.
Intrinsic Value
$1,664.02
Margin of safety
+41.0%
Expected annual return
+11.1%
Base case assumptions: 20.0% annual earnings growth, 46x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
45.8x
PEG Ratio
0.11
Earnings Yield
2.18%
ROE (TTM)
40.8%
Revenue/Share (TTM)
$51.66
Dividend Yield
0.05%
Debt/Equity
0.15x
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 45.8x combined with a PEG ratio of 0.11 provides a growth-adjusted perspective. A PEG below 1.0 suggests MU may be undervalued relative to its 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 (45.8x) against the Semiconductors median to assess relative pricing, (2) check the PEG ratio (0.11) 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 0.11, calculated by dividing the PE ratio (45.8x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 40.8%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.