Sunplus Technology Valuation

Q: What is the Fair Price of 2401 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2401 (NT$28.4) is trading above our estimate of [[fair value]] (NT$1.6)

Is 2401 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 2401 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2401 (NT$28.4) is trading above our estimate of fair value (NT$1.6)

Significantly Below Fair Value: 2401 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2401?

Key metric: As 2401 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2401. This is calculated by dividing 2401's market cap by their current revenue.
What is 2401's PS Ratio?
PS Ratio	2.7x
Sales	NT$6.30b
Market Cap	NT$16.71b

2401 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	2.4x
Enterprise Value/EBITDA	28.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2401's PS Ratio compare to its peers?

The above table shows the PS ratio for 2401 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	3.8x
6679 Zilltek Technology	8.5x	20.8%	NT$18.2b
3545 FocalTech Systems	1.4x	6.6%	NT$18.8b
3576 United Renewable Energy	2.2x	n/a	NT$16.8b
2340 Taiwan-Asia Semiconductor	3.3x	n/a	NT$13.7b
2401 Sunplus Technology	2.7x	n/a	NT$16.7b

Price-To-Sales vs Peers: 2401 is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

How does 2401's PS Ratio compare vs other companies in the TW Semiconductor Industry?

10 Companies	Price / Sales	Estimated Growth	Market Cap
6196 Marketech International	0.5x	9.0%	US$938.77m
6120 Darwin Precisions	0.4x	n/a	US$272.46m
4967 Team Group	0.3x	-13.1%	US$224.32m
8096 CoAsia Electronics	0.2x	n/a	US$177.44m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 2401 is good value based on its Price-To-Sales Ratio (2.7x) compared to the TW Semiconductor industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is 2401'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.

2401 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2401'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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