United Microelectronics Corporation

TWSE:2303 Stock Report

Market Cap: NT$556.9b

United Microelectronics Valuation

Is 2303 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 2303 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2303 (NT$44.45) is trading below our estimate of fair value (NT$163)

Significantly Below Fair Value: 2303 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2303?

Key metric: As 2303 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2303. This is calculated by dividing 2303's market cap by their current earnings.
What is 2303's PE Ratio?
PE Ratio11x
EarningsNT$50.61b
Market CapNT$556.89b

Price to Earnings Ratio vs Peers

How does 2303's PE Ratio compare to its peers?

The above table shows the PE ratio for 2303 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.6x
3711 ASE Technology Holding
20.9x32.9%NT$679.1b
2379 Realtek Semiconductor
17.7x15.0%NT$248.5b
3034 Novatek Microelectronics
14x5.8%NT$292.1b
3529 eMemory Technology
130x29.6%NT$224.0b
2303 United Microelectronics
11x8.0%NT$556.9b

Price-To-Earnings vs Peers: 2303 is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (45.6x).

Price to Earnings Ratio vs Industry

How does 2303's PE Ratio compare vs other companies in the TW Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
4944 Crystalwise Technology
4xn/aUS$15.69m
No more companies available in this PE range
2303 11.0xIndustry Avg. 31.2xNo. of Companies31PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2303 is good value based on its Price-To-Earnings Ratio (11x) compared to the TW Semiconductor industry average (31.2x).

Price to Earnings Ratio vs Fair Ratio

What is 2303'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.

2303 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: 2303 is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2303 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$44.45
NT$51.81
+16.6%
15.1%NT$70.00NT$36.00n/a22
Nov ’25NT$46.60
NT$52.84
+13.4%
15.1%NT$70.00NT$36.00n/a22
Oct ’25NT$53.70
NT$58.45
+8.9%
13.3%NT$70.00NT$34.00n/a22
Sep ’25NT$55.50
NT$58.27
+5.0%
12.9%NT$70.00NT$34.00n/a22
Aug ’25NT$53.90
NT$58.05
+7.7%
13.0%NT$70.00NT$34.00n/a22
Jul ’25NT$56.90
NT$55.35
-2.7%
14.0%NT$70.00NT$33.00n/a22
Jun ’25NT$55.00
NT$54.85
-0.3%
13.4%NT$70.00NT$33.00n/a22
May ’25NT$50.70
NT$55.69
+9.8%
14.7%NT$74.00NT$33.00n/a23
Apr ’25NT$51.70
NT$56.00
+8.3%
14.6%NT$74.00NT$34.00n/a22
Mar ’25NT$48.30
NT$55.78
+15.5%
14.6%NT$74.00NT$34.00n/a22
Feb ’25NT$49.05
NT$54.85
+11.8%
14.2%NT$74.00NT$34.00n/a23
Jan ’25NT$52.60
NT$53.78
+2.2%
18.5%NT$74.02NT$34.00n/a23
Dec ’24NT$49.70
NT$53.70
+8.0%
18.9%NT$74.02NT$32.00n/a23
Nov ’24NT$47.00
NT$54.63
+16.2%
19.9%NT$76.00NT$32.00NT$46.6024
Oct ’24NT$45.20
NT$53.85
+19.1%
21.4%NT$77.65NT$32.00NT$53.7023
Sep ’24NT$45.95
NT$54.02
+17.6%
21.3%NT$77.65NT$32.00NT$55.5024
Aug ’24NT$47.00
NT$53.66
+14.2%
21.3%NT$77.65NT$32.00NT$53.9025
Jul ’24NT$48.50
NT$56.25
+16.0%
18.6%NT$78.61NT$32.00NT$56.9025
Jun ’24NT$50.80
NT$56.25
+10.7%
18.6%NT$78.61NT$32.00NT$55.0025
May ’24NT$49.10
NT$56.25
+14.6%
18.6%NT$78.61NT$32.00NT$50.7025
Apr ’24NT$52.90
NT$54.25
+2.6%
19.1%NT$76.55NT$32.00NT$51.7025
Mar ’24NT$51.30
NT$52.13
+1.6%
20.0%NT$76.55NT$32.00NT$48.3026
Feb ’24NT$49.25
NT$50.86
+3.3%
18.5%NT$76.55NT$32.00NT$49.0527
Jan ’24NT$40.70
NT$47.43
+16.5%
22.9%NT$79.70NT$32.00NT$52.6024
Dec ’23NT$45.60
NT$47.41
+4.0%
23.3%NT$79.70NT$30.00NT$49.7024
Nov ’23NT$39.05
NT$46.43
+18.9%
24.3%NT$79.70NT$30.00NT$47.0024

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Materials Analysis Technology

NT$17.1b

Engages in the research and development, and intellectual property services in Taiwan, Mainland China, Japan, the United States, and internationally.

3587

NT$258.00

7D

-0.6%

1Y

8.9%

Taiwan Semiconductor Manufacturing

NT$27.0t

Manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally.

2330

NT$1,040.00

7D

0.5%

1Y

80.9%

ASE Technology Holding

NT$679.1b

Provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally.

3711

NT$156.50

7D

1.0%

1Y

23.7%