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Powerchip Semiconductor Manufacturing Corp
TWSE:6770

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Powerchip Semiconductor Manufacturing Corp
TWSE:6770
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Price: 52.9 TWD -7.19% Market Closed
Market Cap: NT$223.5B

EV/OCF

33.2
Current
58%
More Expensive
vs 3-y average of 21.1

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
33.2
=
Enterprise Value
NT$262.3B
/
Operating Cash Flow
NT$7.8B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
33.2
=
Enterprise Value
NT$262.3B
/
Operating Cash Flow
NT$7.8B

Valuation Scenarios

Powerchip Semiconductor Manufacturing Corp is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (21.1), the stock would be worth NT$33.55 (37% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-57%
Maximum Upside
No Upside Scenarios
Average Downside
48%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 33.2 NT$52.9
0%
3-Year Average 21.1 NT$33.55
-37%
5-Year Average 16.1 NT$25.71
-51%
Industry Average 18 NT$28.69
-46%
Country Average 14.3 NT$22.73
-57%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
TW
Powerchip Semiconductor Manufacturing Corp
TWSE:6770
223.4B TWD 33.2 -28.6
US
NVIDIA Corp
NASDAQ:NVDA
5.1T USD 48.7 42.2
US
Broadcom Inc
NASDAQ:AVGO
2T USD 69.1 80.2
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
53.9T TWD 22.9 29.9
US
Micron Technology Inc
NASDAQ:MU
560.3B USD 18.2 23.2
US
Advanced Micro Devices Inc
NASDAQ:AMD
566.9B USD 72.5 130.8
KR
SK Hynix Inc
KRX:000660
701.7T KRW 12.8 16.1
US
Intel Corp
NASDAQ:INTC
412.2B USD 43.4 -1 543.8
US
Texas Instruments Inc
NASDAQ:TXN
251.4B USD 36.4 50.5
UK
Arm Holdings PLC
NASDAQ:ARM
249.4B USD 161.9 311.3
US
Analog Devices Inc
NASDAQ:ADI
195.1B USD 39.3 72.1

Market Distribution

Higher than 81% of companies in Taiwan
Percentile
81st
Based on 705 companies
81st percentile
33.2
Low
0.4 — 10.4
Typical Range
10.4 — 23.6
High
23.6 —
Distribution Statistics
Taiwan
Min 0.4
30th Percentile 10.4
Median 14.3
70th Percentile 23.6
Max 8 048.6

Powerchip Semiconductor Manufacturing Corp
Glance View

Market Cap
223.5B TWD
Industry
Semiconductors

Powerchip Semiconductor Manufacturing Corp. (PSMC), a prominent player in the semiconductor industry, weaves a tale of strategic evolution and adaptability. Founded in 1994 and headquartered in Taiwan, PSMC began its journey focusing on dynamic random-access memory (DRAM) products. Over time, the company demonstrated a remarkable ability to pivot and expand its technological arsenal, broadening its portfolio to include foundry services and diversified semiconductor solutions. This transition was not merely a shift in product offerings but a strategic maneuver to harness the burgeoning demand across various semiconductor applications, such as Internet of Things (IoT) devices and automotive electronics. The heart of PSMC's business model lies in its robust foundry operations, which cater to the needs of a global clientele by providing customized manufacturing solutions. The company leverages its advanced production facilities to fabricate integrated circuits designed by other firms, thus enabling those firms to bring their innovations to life without owning the expensive fabrication infrastructure. This business model does more than just fill a niche; it ties PSMC to the success of its clients' products. By providing flexible production capabilities and maintaining high standards of operational efficiency, PSMC not only generates revenue through contract manufacturing but also builds enduring relationships in the tech industry, reinforcing its position as a critical cog in the global semiconductor ecosystem.

Intrinsic Value
41.92 TWD
Overvaluation 21%
Intrinsic Value
Price NT$52.9
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