FineMat Applied Materials Co., Ltd.

TWSE:6698 Stock Report

Market Cap: NT$2.5b

FineMat Applied Materials Valuation

Is 6698 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 6698 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6698 (NT$38.6) is trading below our estimate of fair value (NT$61.77)

Significantly Below Fair Value: 6698 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6698?

Key metric: As 6698 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6698. This is calculated by dividing 6698's market cap by their current revenue.
What is 6698's PS Ratio?
PS Ratio2.7x
SalesNT$932.05m
Market CapNT$2.54b

Price to Sales Ratio vs Peers

How does 6698's PS Ratio compare to its peers?

The above table shows the PS ratio for 6698 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average16.7x
6920 Phoenix Pioneer technology
2.5xn/aNT$2.5b
6423 Yield Microelectronics
12.5x22.9%NT$2.7b
6716 PADAUK Technology
2.1xn/aNT$2.7b
3073 Teamphon Energy
49.7xn/aNT$2.0b
6698 FineMat Applied Materials
2.7xn/aNT$2.5b

Price-To-Sales vs Peers: 6698 is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (16.7x).

Price to Sales Ratio vs Industry

How does 6698's PS Ratio compare vs other companies in the TW Semiconductor Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
6196 Marketech International
0.5x8.6%US$930.06m
6120 Darwin Precisions
0.4xn/aUS$274.79m
4967 Team Group
0.3x-13.1%US$216.37m
8096 CoAsia Electronics
0.2xn/aUS$172.83m
6698 2.7xIndustry Avg. 3.5xNo. of Companies40PS02.44.87.29.612+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 6698 is good value based on its Price-To-Sales Ratio (2.7x) compared to the TW Semiconductor industry average (3.5x).

Price to Sales Ratio vs Fair Ratio

What is 6698'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.

6698 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 6698'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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