Amkor Technology is a provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. The company was founded in 1968 and is based in Tempe, Arizona.
AMKR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Amkor Technology Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Amkor Technology Inc ranked in the 78th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Amkor Technology Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 72. Notably, its equity weight is greater than just 15.6% of US equities in the Technology sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 5.01 years comes in at 0.45%; that's greater than 77.54% of US stocks we're applying DCF forecasting to.
Amkor Technology Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 11.13% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AMKR, try EVTN, AVGO, ARW, QRTEA, and IEC.
I brought Amkor Technology, Inc. (AMKR) to the attention of my dear readers in December 2019. Examining its multiples, I concluded that the company has quite a perplexing valuation profile: while P/E was abnormally high, debt-adjusted ratios pointed to the fact that AMKR was hugely underpriced, but I remained neutral...
Vasily Zyryanov on Seeking Alpha | September 7, 2020