Yem Chio Distribution Valuation

Q: What is the Fair Price of 3171 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3171 (NT$36.05) is trading below our estimate of [[fair value]] (NT$81.77)

Is 3171 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 3171 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3171 (NT$36.05) is trading below our estimate of fair value (NT$81.77)

Significantly Below Fair Value: 3171 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3171?

Key metric: As 3171 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3171. This is calculated by dividing 3171's market cap by their current earnings.
What is 3171's PE Ratio?
PE Ratio	10.7x
Earnings	NT$111.35m
Market Cap	NT$1.19b

3171 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	0.5x
Enterprise Value/EBITDA	5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 3171's PE Ratio compare to its peers?

The above table shows the PE ratio for 3171 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	43.9x
3537 Podak	19.9x	n/a	NT$3.1b
5452 UNIC Technology	124.7x	n/a	NT$5.1b
3388 Topco Technologies	17.9x	16.8%	NT$5.3b
6728 Up Young Cornerstone	13.2x	n/a	NT$3.8b
3171 Yem Chio Distribution	10.7x	n/a	NT$1.2b

Price-To-Earnings vs Peers: 3171 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (43.9x).

Price to Earnings Ratio vs Industry

How does 3171's PE Ratio compare vs other companies in the Asian Trade Distributors Industry?

25 Companies	Price / Earnings	Estimated Growth	Market Cap

25 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3171 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Asian Trade Distributors industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is 3171'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.

3171 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3171'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.

Discover undervalued companies

Tbi Motion Technology

NT$3.8b

Engages in the manufacture and sale of linear motion products for automation industry in Taiwan, rest of Asia, Europe, and internationally.

4540

NT$40.35

-0.9%

25.5%

Lungteh Shipbuilding

NT$11.9b

Engages in the shipbuilding business.

6753

NT$105.00

-5.4%

28.5%

Leader Electronics

NT$3.4b

Provides power adapters and transformers in Taiwan, Mainland China, the Philippines, the United States, Germany, Malaysia, and internationally.

3058

NT$17.15

0.6%

-17.1%