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:
Below please find a table outlining a discounted cash flow forecast for AMKR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Amkor Technology Inc ranked in the 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for AMKR, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 70. Notably, its equity weight is greater than just 14.68% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.01 years, is 0.45% -- higher than 77.46% of stocks in our DCF forecasting set.
Amkor Technology Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 9.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Amkor Technology Inc? See AVGO, QRTEA, ZG, PFPT, and ZS.
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