Tbi Motion Technology Co., Ltd.

TWSE:4540 Stock Report

Market Cap: NT$3.8b

Tbi Motion Technology Valuation

Is 4540 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-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 4540 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4540 (NT$40.4) is trading below our estimate of fair value (NT$126.88)

Significantly Below Fair Value: 4540 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4540?

Key metric: As 4540 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4540. This is calculated by dividing 4540's market cap by their current revenue.
What is 4540's PS Ratio?
PS Ratio1.8x
SalesNT$2.13b
Market CapNT$3.84b

Price to Sales Ratio vs Peers

How does 4540's PS Ratio compare to its peers?

The above table shows the PS ratio for 4540 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.6x
4537 Shuz Tung Machinery Industrial
3.6xn/aNT$3.4b
6425 Easy Field
2.1xn/aNT$3.4b
6668 Zhong Yang TechnologyLtd
4.8x21.0%NT$4.6b
4513 Falcon Machine Tools
3.7xn/aNT$4.5b
4540 Tbi Motion Technology
1.8x18.0%NT$3.8b

Price-To-Sales vs Peers: 4540 is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (3.6x).


Price to Sales Ratio vs Industry

How does 4540's PS Ratio compare vs other companies in the TW Machinery Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
4578 Sogotec Precision
0.3xn/aUS$8.09m
No more companies available in this PS range
4540 1.8xIndustry Avg. 2.1xNo. of Companies19PS01.63.24.86.48+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4540 is good value based on its Price-To-Sales Ratio (1.8x) compared to the TW Machinery industry average (2.1x).


Price to Sales Ratio vs Fair Ratio

What is 4540'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.

4540 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: 4540 is expensive based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


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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