Is Monolithic Power Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Monolithic Power Systems, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment of its value. The company appears to be undervalued, supported by a P/E ratio of 18, a PEG ratio of 0.05, and a robust ROE of 55.88%. In comparison, ON Semiconductor Corp. has a higher P/E of 25.65, while Microchip Technology, Inc. shows a concerning P/E of -724.63, highlighting Monolithic's relative strength in valuation metrics.
Monolithic Power Systems has outperformed the S&P 500 significantly over various periods, with a year-to-date return of 69.79% compared to the S&P 500's 13.30%. This performance reinforces the attractiveness of the stock, suggesting that it is well-positioned for future growth despite its current valuation metrics.