Ching Chan Optical Technology Valuation

Q: What is the Fair Price of 2070 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2070 (NT$74.9) is trading above our estimate of [[fair value]] (NT$45)

Is 2070 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2070 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2070 (NT$74.9) is trading above our estimate of fair value (NT$45)

Significantly Below Fair Value: 2070 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2070?

Key metric: As 2070 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2070. This is calculated by dividing 2070's market cap by their current earnings.
What is 2070's PE Ratio?
PE Ratio	21x
Earnings	NT$127.68m
Market Cap	NT$2.68b

2070 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.4x
Enterprise Value/EBITDA	13x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2070's PE Ratio compare to its peers?

The above table shows the PE ratio for 2070 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	28.8x
6727 Asia Metal Industries	16.9x	14.9%	NT$2.3b
7718 Spec Products	10.6x	n/a	NT$2.4b
3178 Gongin Precision Ind	55.4x	n/a	NT$3.2b
6603 Fu Chun Shin Machinery Manufacture	32.3x	n/a	NT$2.7b
2070 Ching Chan Optical Technology	21x	n/a	NT$2.7b

Price-To-Earnings vs Peers: 2070 is good value based on its Price-To-Earnings Ratio (21x) compared to the peer average (28.8x).

Price to Earnings Ratio vs Industry

How does 2070's PE Ratio compare vs other companies in the TW Machinery Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2070 is expensive based on its Price-To-Earnings Ratio (21x) compared to the TW Machinery industry average (19.7x).

Price to Earnings Ratio vs Fair Ratio

What is 2070's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2070 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2070's Price-To-Earnings Fair Ratio for valuation analysis.

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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