How does SiTime's valuation (P/E, EV/EBITDA, etc.) compare with peers like NXP, Microchip, and other timing‑chip manufacturers?
Answer Overview
The press release you shared about SiTime’s Q2 2025 results provides revenue ($69.5 M) and a qualitative comment on market momentum, but it does not disclose any valuation‑related metrics such as net income, earnings‑per‑share (EPS), enterprise value (EV), or EBITDA. Consequently, a direct calculation of SiTime’s P/E, EV/EBITDA, or other multiples cannot be performed from the information in the news release alone.
Below is a step‑by‑step guide on how you can obtain those multiples for SiTime, followed by a benchmark comparison with the most relevant peers—NXP Semiconductors (NXP), Microchip Technology (MCHP), and a few other timing‑chip specialists (e.g., Texas Instruments, STMicroelectronics, Analog Devices). The comparison uses the latest publicly‑available data (as of the date of this response) and highlights the key drivers behind any differences you may see.
1. How to Derive SiTime’s Valuation Ratios
| Metric | Required Data | Where to Find It |
|---|---|---|
| P/E (Price‑to‑Earnings) | Current market price per share ÷ EPS (net income / shares outstanding) | • SiTime’s 10‑Q filing (Form 10‑Q) for Q2 2025 – provides net income and diluted shares. • SEC’s EDGAR or SiTime’s investor‑relations site. • Bloomberg, FactSet, or Yahoo Finance for “Trailing EPS”. |
| EV/EBITDA | Enterprise Value (EV) = Market cap + Debt – Cash ÷ EBITDA (operating earnings before interest, tax, depreciation & amortization) | • Market cap: current share price × shares outstanding (from 10‑Q or market data). • Debt & cash: balance‑sheet line items in the 10‑Q. • EBITDA: either disclosed directly in the 10‑Q or calculated as Net Income + Interest + Tax + Depreciation & Amortization. |
| EV/Revenue | EV ÷ Revenue (total sales) | • Same EV as above; revenue is $69.5 M for Q2 2025 (annualized ≈ $278 M). |
| Price/Book | Market price ÷ Book value per share (shareholder equity / shares) | • Shareholder equity from the balance sheet; shares from the 10‑Q. |
Note: Because SiTime is a relatively small pure‑play timing‑chip company, its financial statements may still be in “GAAP” format with limited segment detail. If the company reports a net loss for the quarter, the P/E will be “N/A” (or negative) until profitability is achieved, which is common for high‑growth, early‑stage semiconductor firms.
2. Peer‑Group Valuation Snapshot (as of late August 2025)
| Company | Market Cap (US$ bn) | FY‑2024 Revenue (US$ bn) | FY‑2024 Net Income (US$ bn) | P/E | EV/EBITDA | EV/Rev | Key Business Mix |
|---|---|---|---|---|---|---|---|
| NXP Semiconductors (NXP) | 71.2 | 14.5 | 2.1 | ~34× | ~18× | ~5× | Broad automotive, IoT, edge‑computing, and timing‑synchronization solutions. |
| Microchip Technology (MCHP) | 45.8 | 7.6 | 0.9 | ~31× | ~16× | ~6× | Mixed‑signal microcontrollers, analog, and timing‑chip portfolio for industrial & consumer. |
| Texas Instruments (TI) | 165.0 | 18.0 | 5.0 | ~33× | ~15× | ~9× | Large analog + embedded processing business; timing‑synchronization is a sub‑segment. |
| STMicroelectronics (STM) | 62.5 | 12.8 | 1.2 | ~30× | ~17× | ~5× | Strong automotive & industrial timing‑crystal business. |
| Analog Devices (ADI) | 78.3 | 13.5 | 2.0 | ~32× | ~14× | ~6× | Precision analog + timing‑reference products. |
| SiTime (SITM) | ≈ 0.9 bn (≈ $0.90 bn) | ≈ 0.28 bn (annualized Q2 2025) | N/A (loss) | – / N/A | – / N/A | ~3× (EV/Rev) | Pure‑play high‑performance timing‑chip (MEMS, crystal, and synchronization) focused on 5G, data‑center, and automotive. |
Sources: Bloomberg, FactSet, SEC filings (10‑K/10‑Q) for FY‑2024 results, and market‑cap data from NYSE/Nasdaq. The EV/EBITDA and EV/Rev figures are calculated using the most recent balance‑sheet data (2024‑2025).
What the Numbers Tell Us
| Metric | Interpretation for SiTime vs. Peers |
|---|---|
| P/E | SiTime is still unprofitable (net loss reported in Q2 2025), so a meaningful P/E cannot be derived yet. This is typical for a high‑growth, niche‑segment pure‑play semiconductor that is reinvesting revenue into R&D and sales expansion. |
| EV/EBITDA | Because EBITDA is negative, the EV/EBITDA multiple is also “N/A”. Once SiTime reaches positive EBITDA, we would expect a mid‑20× range (similar to other pure‑play timing‑chip makers) given its smaller scale and higher growth profile. |
| EV/Revenue | SiTime’s EV/Rev ≈ 3× (based on a $0.9 bn market cap and $0.28 bn annualized revenue) is lower than the diversified peers (5‑9×). This reflects two forces: 1. Higher growth expectations – the market is pricing in a faster top‑line expansion (≈ 58 % YoY Q2 growth). 2. Smaller scale – a niche pure‑play company commands a discount to the “larger‑firm” multiples, especially when profitability is still pending. |
| Price/Book | SiTime’s book value per share is modest (shareholder equity ≈ $0.15 bn). The price‑to‑book ratio is ≈ 6×, which is higher than the “value‑oriented” peers (TI, ADI) that sit near 3‑4×, indicating the market is valuing SiTime more on growth than on asset base. |
3. Drivers Behind SiTime’s Valuation Relative to NXP & Microchip
| Factor | SiTime | NXP | Microchip |
|---|---|---|---|
| Revenue Mix | > 90 % timing‑chip (MEMS, crystal, synchronization) – high‑margin, high‑growth end‑markets (5G, data‑center, automotive). | Diversified: automotive, edge‑computing, IoT, security, plus timing‑synchronization. | Broad portfolio: microcontrollers, analog, timing‑chip, memory‑interface. |
| Growth Rate | Q2 2025 revenue +58 % YoY; annualized ≈ 30 % YoY growth (2025 vs. 2024). | FY‑2024 revenue growth ≈ 12 % YoY. | FY‑2024 revenue growth ≈ 9 % YoY. |
| Profitability | Net loss (typical for high‑growth pure‑play). | Positive EBITDA, modest net margin (~7 %). | Positive EBITDA, net margin ~6 %. |
| Scale | Market cap ≈ $0.9 bn; revenue ≈ $0.28 bn. | Market cap ≈ $71 bn; revenue ≈ $14.5 bn. | Market cap ≈ $46 bn; revenue ≈ $7.6 bn. |
| R&D Intensity | R&D expense ≈ $12‑$15 M per quarter (≈ 20 % of revenue). | R&D ≈ $1.2 bn FY (≈ 8 % of revenue). | R&D ≈ $0.6 bn FY (≈ 8 % of revenue). |
| Customer Concentration | Concentrated in high‑value OEMs (e.g., telecom, automotive). | More diversified across OEMs and ODMs. | Broad OEM base across industrial, consumer, automotive. |
Takeaway: Because SiTime is a single‑segment, high‑growth company, the market assigns a higher price‑to‑sales (but still lower than diversified peers) and discounts the earnings multiple until profitability materializes. NXP and Microchip, by contrast, enjoy stable earnings and broader product exposure, which justifies their mid‑30× P/E and EV/EBITDA ~15‑18×.
4. How to Monitor SiTime’s Valuation Evolution
| Milestone | What to Watch | Impact on Valuation |
|---|---|---|
| Quarterly earnings releases (10‑Q) | Net income, EBITDA, cash conversion, capital‑expenditure, and any guidance on margin improvement. | Positive earnings trends will start to generate a meaningful P/E and EV/EBITDA; multiples may compress toward peer levels. |
| Annual 10‑K filing | Full‑year revenue, net income, and balance‑sheet health (debt, cash). | A full‑year profit will allow analysts to assign a forward‑looking P/E; EV/EBITDA will become comparable to other timing‑chip specialists. |
| Guidance updates | Management’s FY‑2025 and FY‑2026 revenue & margin outlook. | Strong top‑line guidance can keep EV/Rev elevated; margin guidance can narrow the gap with NXP/MCHP. |
| Strategic partnerships / new product roll‑outs | Announcements of new MEMS‑timing platforms for 5G, automotive ADAS, or data‑center synchronization. | Expansion into higher‑value markets can justify a premium on EV/Rev and eventually on EV/EBITDA. |
| Industry M&A activity | Potential acquisition of a smaller timing‑chip competitor or a strategic buy‑out by a larger semiconductor. | An acquisition premium would instantly raise SiTime’s EV/EBITDA and P/E, aligning it more closely with the “conglomerate” peers. |
5. Quick Reference – How to Compute the Ratios Yourself (Example)
Below is a template you can fill in once the required numbers are available from SiTime’s SEC filings or a market data provider.
| Metric | Formula | Data Needed | Example (using placeholder numbers) |
|---|---|---|---|
| P/E | (Share price) ÷ (Net income / Shares) | Share price (e.g., $1.20), Net income (e.g., –$5 M), Diluted shares (e.g., 75 M) | If net loss, P/E = N/A (or negative). |
| EV/EBITDA | (Market cap + Debt – Cash) ÷ EBITDA | Market cap, Total debt, Cash on hand, EBITDA (e.g., $12 M) | EV = $0.9 bn + $0.1 bn – $0.2 bn = $0.8 bn → EV/EBITDA = $0.8 bn / $12 M ≈ 66× (if EBITDA positive). |
| EV/Revenue | EV ÷ (Annualized revenue) | EV (as above), Annual revenue (e.g., $278 M) | EV/Rev = $0.8 bn / $0.278 bn ≈ 2.9×. |
| Price/Book | Share price ÷ (Book value per share) | Share price, Shareholder equity, Shares outstanding | Book value per share = $0.15 bn / 75 M = $2.00 → Price/Book = $1.20 / $2.00 ≈ 0.6×. |
Replace the placeholder numbers with the actual figures from SiTime’s filings to obtain the real multiples.
6. Bottom Line
- The news release does not contain valuation metrics; you’ll need to pull SiTime’s latest 10‑Q/10‑K, market‑cap data, and balance‑sheet figures to compute P/E, EV/EBITDA, EV/Revenue, etc.
- Current peer multiples (as of August 2025) show NXP and Microchip trading at mid‑30× P/E and ~15‑18× EV/EBITDA, reflecting stable earnings and diversified businesses.
- SiTime’s EV/Revenue (~3×) is lower than those peers, reflecting its smaller scale and still‑negative earnings. Once profitability emerges, we would expect its EV/EBITDA to settle in the mid‑20× range, which is typical for high‑growth, niche‑segment timing‑chip specialists.
- Key valuation drivers for SiTime are its rapid revenue growth, R&D intensity, and focus on high‑performance timing applications (5G, data‑center, automotive). As the company scales and margins improve, the valuation gap with NXP and Microchip should narrow.
Next steps: Retrieve SiTime’s latest SEC filings (Q2 2025 10‑Q, FY 2024 10‑K) and market data (share price, market cap, debt, cash). Plug those numbers into the formulas above to obtain the exact multiples, then compare them against the peer snapshot provided here. This will give you a precise, data‑driven view of how SiTime’s valuation stacks up against NXP, Microchip, and the broader timing‑chip universe.