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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: 54.5 TWD 3.02% Market Closed
Market Cap: NT$230.3B

P/OCF

29.4
Current
75%
More Expensive
vs 3-y average of 16.8

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
29.4
=
Market Cap
NT$226B
/
Operating Cash Flow
NT$7.8B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
29.4
=
Market Cap
NT$226B
/
Operating Cash Flow
NT$7.8B

Valuation Scenarios

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

If P/OCF returns to its 3-Year Average (16.8), the stock would be worth NT$31.09 (43% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-65%
Maximum Upside
No Upside Scenarios
Average Downside
50%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 29.4 NT$54.5
0%
3-Year Average 16.8 NT$31.09
-43%
5-Year Average 10.3 NT$19.13
-65%
Industry Average 18.6 NT$34.44
-37%
Country Average 13.2 NT$24.38
-55%

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

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
TW
Powerchip Semiconductor Manufacturing Corp
TWSE:6770
230.2B TWD 29.4 -29.5
US
NVIDIA Corp
NASDAQ:NVDA
5.3T USD 49.7 42.5
US
Broadcom Inc
NASDAQ:AVGO
2T USD 63.6 75.6
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
58.7T TWD 25.3 30.8
US
Micron Technology Inc
NASDAQ:MU
591.7B USD 18.3 23.3
US
Advanced Micro Devices Inc
NASDAQ:AMD
545.4B USD 68 120.9
KR
SK Hynix Inc
KRX:000660
701.7T KRW 16.9 21.1
US
Intel Corp
NASDAQ:INTC
426.9B USD 41.2 -129.5
US
Texas Instruments Inc
NASDAQ:TXN
244.4B USD 30.9 45.2
UK
Arm Holdings PLC
NASDAQ:ARM
229.3B USD 139.4 264.9
US
Analog Devices Inc
NASDAQ:ADI
191.7B USD 37.1 69.3

Market Distribution

Higher than 81% of companies in Taiwan
Percentile
81th
Based on 708 companies
81th percentile
29.4
Low
0.5 — 8.9
Typical Range
8.9 — 20.4
High
20.4 —
Distribution Statistics
Taiwan
Min 0.5
30th Percentile 8.9
Median 13.2
70th Percentile 20.4
Max 5 587.5

Powerchip Semiconductor Manufacturing Corp
Glance View

Market Cap
230.3B 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 23%
Intrinsic Value
Price NT$54.5
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