Silicon Motion Technology Corporation

NasdaqGS:SIMO Stock Report

Market Cap: US$1.7b

Silicon Motion Technology Valuation

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

Below Fair Value: SIMO ($52.8) is trading below our estimate of fair value ($110.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SIMO. This is calculated by dividing SIMO's market cap by their current earnings.
What is SIMO's PE Ratio?
PE Ratio20x
EarningsUS$88.77m
Market CapUS$1.72b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SIMO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.8x
DIOD Diodes
40.8x52.0%US$2.5b
SYNA Synaptics
18.7x-75.7%US$3.0b
POWI Power Integrations
92.2x41.2%US$3.4b
HIMX Himax Technologies
11.6x24.3%US$905.1m
SIMO Silicon Motion Technology
20x27.5%US$1.7b

Price-To-Earnings vs Peers: SIMO is good value based on its Price-To-Earnings Ratio (20x) compared to the peer average (40.8x).

Price to Earnings Ratio vs Industry

How does SIMO's PE Ratio compare vs other companies in the US Semiconductor Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TOYO TOYO
4.7xn/aUS$146.46m
SQNS Sequans Communications
1.5x-156.5%US$64.23m
No more companies available in this PE range
SIMO 20.0xIndustry Avg. 30.6xNo. of Companies9PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SIMO is good value based on its Price-To-Earnings Ratio (20x) compared to the US Semiconductor industry average (30.6x).

Price to Earnings Ratio vs Fair Ratio

What is SIMO'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.

SIMO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: SIMO is good value based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (22x).

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 SIMO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$52.80
US$77.11
+46.0%
17.6%US$95.00US$50.00n/a9
Nov ’25US$52.78
US$77.11
+46.1%
17.6%US$95.00US$50.00n/a9
Oct ’25US$59.57
US$86.89
+45.9%
17.1%US$110.00US$60.00n/a9
Sep ’25US$63.57
US$88.33
+39.0%
14.9%US$110.00US$60.00n/a9
Aug ’25US$64.86
US$97.22
+49.9%
9.0%US$112.00US$88.00n/a9
Jul ’25US$79.87
US$94.78
+18.7%
8.9%US$110.00US$85.00n/a9
Jun ’25US$78.09
US$94.33
+20.8%
8.3%US$110.00US$85.00n/a9
May ’25US$71.70
US$85.56
+19.3%
14.1%US$101.00US$59.00n/a9
Apr ’25US$79.70
US$82.44
+3.4%
13.1%US$100.00US$59.00n/a9
Mar ’25US$72.20
US$82.11
+13.7%
12.8%US$100.00US$59.00n/a9
Feb ’25US$63.54
US$76.67
+20.7%
14.5%US$100.00US$59.00n/a9
Jan ’25US$61.27
US$74.50
+21.6%
17.2%US$100.00US$54.00n/a10
Dec ’24US$58.83
US$74.50
+26.6%
17.2%US$100.00US$54.00n/a10
Nov ’24US$54.25
US$75.20
+38.6%
22.1%US$106.00US$58.00US$52.7810
Oct ’24US$51.25
US$75.10
+46.5%
23.0%US$106.00US$56.00US$59.5710
Sep ’24US$54.48
US$74.64
+37.0%
22.1%US$106.00US$56.00US$63.5711
Aug ’24US$63.42
US$74.64
+17.7%
22.1%US$106.00US$56.00US$64.8611
Jul ’24US$71.86
US$79.50
+10.6%
23.2%US$107.00US$55.00US$79.8710
Jun ’24US$62.94
US$79.44
+26.2%
24.4%US$107.00US$55.00US$78.099
May ’24US$61.64
US$84.22
+36.6%
21.0%US$109.00US$60.00US$71.709
Apr ’24US$65.52
US$88.00
+34.3%
22.9%US$120.00US$60.00US$79.7010
Mar ’24US$67.29
US$88.00
+30.8%
22.9%US$120.00US$60.00US$72.2010
Feb ’24US$65.39
US$89.30
+36.6%
22.4%US$120.00US$60.00US$63.5410
Jan ’24US$64.99
US$91.44
+40.7%
21.9%US$120.00US$60.00US$61.279
Dec ’23US$63.02
US$91.44
+45.1%
21.9%US$120.00US$60.00US$58.839
Nov ’23US$56.61
US$103.13
+82.2%
11.5%US$120.00US$80.00US$54.258

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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