Micron deserves 10-12x forward earnings rather than 6.2x, and its latest quarter only strengthened the bull case. Revenue reached $54.23B, up 379% year over year, and EPS $33.42, up 1,003%; next-quarter guidance is $62B revenue and $38.15 EPS versus estimates of $58B and $35.92. The market fears growth and demand could suddenly stop, but no one can time when or if that happens, whether in 1, 2, 3 or 5 years. It might not deserve 20x. x.com 

Micron's revenue grew faster than its stock over the past year, leaving it cheaper on trailing earnings. Quarterly revenue rose from $11.3B to $54.2B, while the stock rose from about $198 to $878 and trailing P/E fell from roughly 24x to 11.6x. x.com 

If Micron has only two years of decent forecasts, its limited visibility warrants a lower multiple, not a higher one. x.com 

Micron can't meet customer demand, giving it rare visibility at a valuation of about 5x next year's earnings. CEO Sanjay Mehrotra said customers are extending agreements into 2031, which gives certainty of demand and lets Micron plan capacity investments with confidence. The stock is now about $1,000, and with potential EPS beats over the next few quarters its forward P/E could be around 5, unthinkable about six months ago. x.com  x.com 

Micron trades at 7x forward earnings, below its 11x 10-year median, because the market is pricing a cycle peak that does not look close. Revenue of $54.2B beat the $50.5B expected, and guidance of $61.5B topped $56.8B. Over 75% of 2027 output is contracted, customer agreements rose to 26 from 16, and management expects worse shortages in 2027-28; price bands on most contract revenue set a floor and cap upside. Consensus FY2027 FCF of $117B, a 9.8% yield, exceeds higher capex. x.com 

Micron looks expensive on price-to-book at about 8x versus a historical average of about 2x, and relying on forward P/E for such a cyclical business can be dangerous. x.com 

Micron's sold-out high-bandwidth memory through 2027+ and contracts already being signed for 2029-2030+ extend its earnings runway. At 5x forward earnings, it is cheaper than a year ago; its private Anthropic stake is about to be instantly rerated at Anthropic's IPO, and a new share buyback is expected to be announced Dec. 9. Micron could certainly gain 30% in three months. x.com  x.com 

Micron's valuation looks ridiculous given the street's eight-year EPS estimates, even with a projected 2028 earnings peak and subsequent decline. At under $900, it trades at 5.09 times this year's expected EPS of $176.55. If consensus plays out, 2027-34 EPS would total $921.56, more than the share price; if analysts are wrong about when EPS peaks, Micron would look even cheaper. x.com 

Micron Technology looks expensive on cyclical-earnings rules. Benjamin Graham warned that cyclical companies look cheapest at the peak of the cycle, when earnings are highest, and advised paying no more than 15 times the average earnings of the last three years. Setting forward earnings aside, Micron's average P/E over the last three years is 37.25. x.com 

Micron is not egregiously priced, because its valuation already assumes its margins will fall. It trades at about 6x forward earnings precisely on the assumption that it is overearning and 80% gross margins will eventually contract, contrary to Dan Nathan's critique. x.com