Micron's moat score of 62 and management score of 70 point to a business with a real but not dominant competitive position, backed by decent capital discipline: return on invested capital of 12.1%, gross margin of 39.8%, and debt to equity of just 0.3x. This is a company that has historically grown at 12.0% and is modeled forward at a capped 11.8%, a deliberately conservative choice rather than a limitation of the business itself.
The margin of safety score sits at 45, and the gap explains why. The three valuation approaches land between $294.76 and $401.71, with a consensus buy price of $401.71, while shares trade at $868.52. That price embeds an exit multiple of 23.5x against a current price to earnings of 19.7x, and a free cash flow yield of just 1.2%.
The tension is straightforward: the underlying scores describe a financially sound, moderately moated business, but the price sits more than double every valuation anchor produced from that same history, even before accounting for the conservatism already built into the growth assumption.
| Price | $1,015.80 |
| Market cap | $1.1T |
| P/E ratio | 23.0x |
| Return on invested capital | 12.1% |
| Gross margin | 39.8% |
| Debt to equity | 0.28x |
| Free cash flow yield | 1.2% |
| Growth rate used | 11.8% |
| Growth rate measured | 12.0% |
| Exit multiple assumed | 23.5x |
| Company | Moat | Mgmt | Margin of safety |
|---|---|---|---|
| Advanced Micro Devices (AMD) | 91 | 75 | 10 |
| Intel Corporation (INTC) | 24 | 39 | 0 |
| Broadcom Inc. (AVGO) | 99 | 98 | 33 |
| NVIDIA Corporation (NVDA) | 100 | 100 | 53 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Micron Technology rather than accepting ours.