Powerchip Semiconductor Manufacturing Corp.

TWSE:6770 Stock Report

Market Cap: NT$74.3b

Powerchip Semiconductor Manufacturing Valuation

Is 6770 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 6770 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6770 (NT$17.9) is trading above our estimate of fair value (NT$0.5)

Significantly Below Fair Value: 6770 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6770?

Key metric: As 6770 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6770. This is calculated by dividing 6770's market cap by their current revenue.
What is 6770's PS Ratio?
PS Ratio1.7x
SalesNT$44.76b
Market CapNT$74.33b

Price to Sales Ratio vs Peers

How does 6770's PS Ratio compare to its peers?

The above table shows the PS ratio for 6770 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
2344 Winbond Electronics
1x19.5%NT$81.0b
3105 WIN Semiconductors
2.6x9.5%NT$49.2b
4966 Parade Technologies
3.3x12.9%NT$52.5b
6176 Radiant Opto-Electronics
1.9x1.4%NT$92.5b
6770 Powerchip Semiconductor Manufacturing
1.7x11.9%NT$74.3b

Price-To-Sales vs Peers: 6770 is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (3.9x).

Price to Sales Ratio vs Industry

How does 6770's PS Ratio compare vs other companies in the TW Semiconductor Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
6196 Marketech International
0.5x9.0%US$937.98m
6120 Darwin Precisions
0.4xn/aUS$272.23m
4967 Team Group
0.3x-13.1%US$224.13m
8096 CoAsia Electronics
0.2xn/aUS$177.29m
6770 1.7xIndustry Avg. 3.6xNo. of Companies40PS02.44.87.29.612+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 6770 is good value based on its Price-To-Sales Ratio (1.7x) compared to the TW Semiconductor industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is 6770'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.

6770 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: 6770 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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 6770 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$17.90
NT$20.75
+15.9%
22.7%NT$28.00NT$15.00n/a4
Nov ’25NT$18.40
NT$21.50
+16.8%
18.2%NT$28.00NT$18.00n/a4
Oct ’25NT$20.90
NT$23.00
+10.0%
19.7%NT$28.00NT$18.00n/a4
Sep ’25NT$21.60
NT$24.50
+13.4%
15.9%NT$28.00NT$18.00n/a4
Aug ’25NT$23.75
NT$24.50
+3.2%
15.9%NT$28.00NT$18.00n/a4
Jul ’25NT$27.15
NT$27.00
-0.6%
26.6%NT$38.00NT$18.00n/a4
Jun ’25NT$24.90
NT$26.25
+5.4%
28.6%NT$38.00NT$18.00n/a4
May ’25NT$22.85
NT$26.25
+14.9%
28.6%NT$38.00NT$18.00n/a4
Apr ’25NT$25.95
NT$26.75
+3.1%
28.4%NT$38.00NT$18.00n/a4
Mar ’25NT$26.90
NT$26.75
-0.6%
28.4%NT$38.00NT$18.00n/a4
Feb ’25NT$27.10
NT$26.75
-1.3%
28.4%NT$38.00NT$18.00n/a4
Jan ’25NT$29.45
NT$24.25
-17.7%
18.5%NT$29.00NT$18.00n/a4
Dec ’24NT$29.60
NT$24.00
-18.9%
19.3%NT$29.00NT$18.00n/a4
Nov ’24NT$27.20
NT$24.00
-11.8%
19.3%NT$29.00NT$18.00NT$18.404
Oct ’24NT$26.55
NT$25.13
-5.4%
21.2%NT$32.00NT$18.00NT$20.904
Sep ’24NT$28.15
NT$24.70
-12.3%
19.6%NT$32.00NT$18.00NT$21.605
Aug ’24NT$30.00
NT$26.38
-12.1%
14.8%NT$32.00NT$22.50NT$23.754
Jul ’24NT$30.95
NT$27.63
-10.7%
18.8%NT$35.00NT$22.50NT$27.154
Jun ’24NT$30.60
NT$27.63
-9.7%
18.8%NT$35.00NT$22.50NT$24.904
May ’24NT$29.70
NT$27.63
-7.0%
18.8%NT$35.00NT$22.50NT$22.854
Apr ’24NT$33.10
NT$27.25
-17.7%
17.1%NT$33.50NT$22.50NT$25.954
Mar ’24NT$33.10
NT$27.25
-17.7%
17.1%NT$33.50NT$22.50NT$26.904
Feb ’24NT$35.00
NT$27.25
-22.1%
17.1%NT$33.50NT$22.50NT$27.104
Jan ’24NT$31.85
NT$27.15
-14.8%
10.4%NT$30.00NT$22.50NT$29.454
Dec ’23NT$34.00
NT$27.40
-19.4%
8.8%NT$30.00NT$23.50NT$29.604
Nov ’23NT$30.65
NT$27.40
-10.6%
8.8%NT$30.00NT$23.50NT$27.204

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

Discover undervalued companies

Chipbond Technology

NT$45.4b

Engages in the research, development, manufacture, and sale of driver IC and non-driver IC packaging and testing services in Taiwan and Mainland China.

6147

NT$60.90

7D

-4.7%

1Y

-12.4%

GlobalWafers

NT$204.4b

Researches, designs, develops, and manufactures semiconductor ingots and wafers in Taiwan and internationally.

6488

NT$427.50

7D

0.2%

1Y

-19.6%

Realtek Semiconductor

NT$250.3b

Engages in the research, development, production, and sale of various integrated circuits and related application software in Taiwan, Asia, and internationally.

2379

NT$488.00

7D

-2.4%

1Y

14.0%