REC Silicon Valuation

Is RECSI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RECSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RECSI (NOK4.64) is trading below our estimate of fair value (NOK26.06)

Significantly Below Fair Value: RECSI is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RECSI?

Key metric: As RECSI is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RECSI. This is calculated by dividing RECSI's market cap by their current revenue.
What is RECSI's PS Ratio?
PS Ratio1.1x
SalesUS$154.10m
Market CapUS$170.97m

Price to Sales Ratio vs Peers

How does RECSI's PS Ratio compare to its peers?

The above table shows the PS ratio for RECSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
A265520 Advanced Process Systems
0.4x7.6%₩228.5b
A071280 Rorze Systems
1.9x44.0%₩223.6b
0.7x31.0%₩216.6b
4933 Ubright Optronics
2xn/aNT$5.5b
RECSI REC Silicon
1.1x58.1%NOK 2.0b

Price-To-Sales vs Peers: RECSI is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (1.3x).


Price to Sales Ratio vs Industry

How does RECSI's PS Ratio compare vs other companies in the European Semiconductor Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
RECSI 1.1xIndustry Avg. 1.7xNo. of Companies7PS01.22.43.64.86+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RECSI is good value based on its Price-To-Sales Ratio (1.1x) compared to the European Semiconductor industry average (1.7x).


Price to Sales Ratio vs Fair Ratio

What is RECSI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RECSI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: RECSI is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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