Hycon Technology Valuation

Is 6457 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 6457 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6457 (NT$61.6) is trading below our estimate of fair value (NT$170.07)

Significantly Below Fair Value: 6457 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6457?

Key metric: As 6457 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6457. This is calculated by dividing 6457's market cap by their current revenue.
What is 6457's PS Ratio?
PS Ratio	2.1x
Sales	NT$937.37m
Market Cap	NT$1.96b

6457 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	2x
Enterprise Value/EBITDA	-40.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 6457's PS Ratio compare to its peers?

The above table shows the PS ratio for 6457 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	2.3x
3041 ALi	1.2x	n/a	NT$2.0b
6287 Advanced Microelectronic ProductsInc	1.7x	n/a	NT$1.7b
6494 Nyquest Technology	1.2x	4.6%	NT$1.7b
5272 AMICCOM Electronics	5x	n/a	NT$1.7b
6457 Hycon Technology	2.1x	n/a	NT$2.0b

Price-To-Sales vs Peers: 6457 is good value based on its Price-To-Sales Ratio (2.1x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does 6457's PS Ratio compare vs other companies in the TW Semiconductor Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap
6196 Marketech International	0.5x	8.6%	US$939.41m
6120 Darwin Precisions	0.4x	n/a	US$280.85m
4967 Team Group	0.3x	-13.1%	US$222.75m
8096 CoAsia Electronics	0.2x	n/a	US$188.37m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 6457 is good value based on its Price-To-Sales Ratio (2.1x) compared to the TW Semiconductor industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is 6457'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.

6457 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 6457'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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