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Loongson Technology Corp Ltd
SSE:688047

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Loongson Technology Corp Ltd
SSE:688047
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Price: 166.23 CNY 6.61% Market Closed
Market Cap: ¥66.7B

EV/IC

27.5
Current
25%
More Expensive
vs 3-y average of 22

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
27.5
=
Enterprise Value
¥66.1B
/
Invested Capital
¥2.4B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
27.5
=
Enterprise Value
¥66.1B
/
Invested Capital
¥2.4B

Valuation Scenarios

Loongson Technology Corp Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (22), the stock would be worth ¥133.15 (20% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-93%
Maximum Upside
No Upside Scenarios
Average Downside
56%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 27.5 ¥166.23
0%
3-Year Average 22 ¥133.15
-20%
5-Year Average 19.8 ¥119.46
-28%
Industry Average 4.2 ¥25.39
-85%
Country Average 1.9 ¥11.66
-93%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
CN
Loongson Technology Corp Ltd
SSE:688047
66.6B CNY 27.5 -159.3
US
NVIDIA Corp
NASDAQ:NVDA
4.8T USD 35.5 40.2
US
Broadcom Inc
NASDAQ:AVGO
2T USD 13.3 79.9
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
55.4T TWD 10.2 29.3
US
Micron Technology Inc
NASDAQ:MU
611.6B USD 7.3 25.4
US
Advanced Micro Devices Inc
NASDAQ:AMD
587.7B USD 9.1 135.6
KR
SK Hynix Inc
KRX:000660
701.7T KRW 5 16.1
US
Intel Corp
NASDAQ:INTC
500.4B USD 3.1 -157.7
US
Texas Instruments Inc
NASDAQ:TXN
254.9B USD 9.1 47.8
UK
Arm Holdings PLC
NASDAQ:ARM
224.3B USD 33.7 280
US
Analog Devices Inc
NASDAQ:ADI
194.2B USD 4.6 71.7

Market Distribution

Higher than 97% of companies in China
Percentile
97th
Based on 7 566 companies
97th percentile
27.5
Low
0 — 1.1
Typical Range
1.1 — 3.4
High
3.4 —
Distribution Statistics
China
Min 0
30th Percentile 1.1
Median 1.9
70th Percentile 3.4
Max 1 129 391.6

Loongson Technology Corp Ltd
Glance View

Market Cap
66.7B CNY
Industry
Semiconductors

Loongson Technology Corp Ltd., a noteworthy player in China's growing tech landscape, emerged as a strategic response to the nation's desire to cultivate a domestic semiconductor industry. Established in 2002, Loongson has been intricately weaving its narrative around the development of homegrown processors. As the drumbeat of technology advancement intensified globally, Loongson positioned itself to challenge the status quo dominated by international giants like Intel and AMD. The company centers its operations on designing and manufacturing microprocessors that power computers, servers, and other devices, with a keen focus on delivering solutions tailored to the unique needs of the Chinese market. Leveraging its expertise in RISC architecture, Loongson's processors are designed to provide robust performance while offering energy efficiency—key attributes that ensure competitiveness in sectors ranging from consumer electronics to governmental systems. Loongson's financial engine is driven by its ability to capitalize on China's strategic policy support for domestically produced technology. The company generates revenue through the sale of its processors and associated products, while also offering licensing opportunities for its proprietary technology. This approach not only assures a steady stream of revenue but also fosters a broader ecosystem of compatibility and adoption within the Chinese industry. Furthermore, Loongson's collaborations with local universities and research institutes fuel its innovation pipeline, ensuring that it remains at the cutting edge of processor technology. This combination of strategic partnerships, government support, and a focus on R&D allows Loongson not only to thrive financially but also to play a pivotal role in strengthening China's technological sovereignty.

Intrinsic Value
14.22 CNY
Overvaluation 91%
Intrinsic Value
Price ¥166.23
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