TacBright Optronics Valuation

Q: What is the Fair Price of 6434 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6434 (NT$3.05) is trading below our estimate of [[fair value]] (NT$21.02)

Is 6434 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 6434 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6434 (NT$3.05) is trading below our estimate of fair value (NT$21.02)

Significantly Below Fair Value: 6434 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6434?

Key metric: As 6434 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6434. This is calculated by dividing 6434's market cap by their current revenue.
What is 6434's PS Ratio?
PS Ratio	1.1x
Sales	NT$1.31b
Market Cap	NT$1.41b

6434 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	1.7x
Enterprise Value/EBITDA	7.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 6434's PS Ratio compare to its peers?

The above table shows the PS ratio for 6434 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.1x
1742 Taiwan Wax CompanyLtd	5.6x	n/a	NT$1.6b
6506 Shuang-Bang Industrial	0.8x	n/a	NT$1.5b
1776 Headway Advanced Materials	0.9x	n/a	NT$1.1b
4711 Yong Shun Chemical	1.3x	4.0%	NT$973.8m
6434 TacBright Optronics	1.1x	n/a	NT$1.4b

Price-To-Sales vs Peers: 6434 is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (2.1x).

Price to Sales Ratio vs Industry

How does 6434's PS Ratio compare vs other companies in the TW Chemicals Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
1313 UPC Technology	0.2x	n/a	US$438.48m
1304 USI	0.3x	3.6%	US$436.14m
1718 China Man-Made Fiber	0.3x	n/a	US$334.43m
1309 Taita Chemical Company	0.4x	2.6%	US$197.72m

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 6434 is good value based on its Price-To-Sales Ratio (1.1x) compared to the TW Chemicals industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 6434'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.

6434 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 6434's Price-To-Sales 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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