ASE Technology Holding Co. Ltd. ADR (ASX) Company Bio
ASE Technology Holding Co., Ltd. engages in the provision of semiconductor manufacturing services. The firm develops and offers turnkey solutions for the front-end engineering test, wafer probing and final test, as well IC packaging, materials and electronic manufactures services. It operates through the following segments: Packaging, Testing, Electronic Manufacturing Services (EMS), Estate and Others. The Packaging segment offers a broad range of package types such as flip-chip BGA, flip-chip chip scale packages, advanced chip scale packages, quad flat packages, thin quad flat packages, bump chip carrier, quad flat no-lead packages, advanced quad flat no-lead packages and plastic BGA. The Testing segment provides complete range of semiconductor testing services, including front-end engineering testing, wafer probing, final testing of logic/mixed-signal/RF/(2.5D/3D) module and SiP/ MEMS/Discrete and other test-related services. The EMS segment consists of the SMT assembly line which provides activities such as, solder paste stencil printing, component placement, and solder reflow. The company was founded in April 2018 and is headquartered in Kaohsiung, Taiwan.
ASX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for ASE Technology Holding Co Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that ASE Technology Holding Co Ltd ranked in the 97th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 8198.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ASX, they are:
The company has produced more trailing twelve month cash flow than 98.37% of its sector Technology.
ASE Technology Holding Co Ltd's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 18.76% of tickers in our DCF set.
ASX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than only 18.76% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
QCCO, SNE, OKTA, PRSP, and TDOC can be thought of as valuation peers to ASX, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
(Bloomberg) -- Near-sighted planning, supply-chain complexities and a tradition of keeping inventories low caused the semiconductor shortage that is now forcing carmakers to idle production lines and straining their relationship with chip manufacturers.Seeds of the imbroglio were sown almost a year ago as the virus outbreak led to plunging car demand, prompting auto-chip companies to slash orders. But when they wanted to increase supply toward the end of 2020, they struggled to secure capacity at Taiwan Semiconductor Manufacturing Co. and other contract chipmakers that were busy servicing a boom in demand for gadgets that help housebound consumers stay connected, according to people familiar with the situation.While publicly assuring the problem is solvable, in private the parties are p...
Along with fast growing demand for compound and Si-based ICs used in automotive sensor modules, Taiwan-based GaAs epitaxial wafer makers WIN Semiconductors, Advanced Wireless Semiconductor and Visual Photonics Epitaxy as well as IC packaging/testing service providers Advanced Semiconductor Engineering (ASE) and ShunSin Technology are expected to see many business opportunities, according to industry sources.
(Bloomberg) -- More than a year after its outbreak, the coronavirus keeps finding new ways to hit carmakers.After first wiping out auto demand, the virus is now hindering parts supply: chips used in vehicles are harder to come by because semiconductor manufacturers allocated more capacity to meet soaring demand from consumer-electronics makers such as Apple Inc.The shortage risks dragging on, with lockdowns and travel restrictions prompting housebound consumers to snap up more phones, game consoles, smart TVs and laptops to get online. Lower down in importance to chipmakers, auto manufacturers from Toyota Motor Corp. to Volkswagen AG risk not getting enough goods to fuel a fledgling recovery in their own industry.“Customers can’t build because they can’t get parts,” Glen De Vos, chief t...
(Bloomberg) -- Stocks involved in Japan’s semiconductor supply chain jumped in Tokyo on Tuesday following a report that chip giant Taiwan Semiconductor Manufacturing Co. will build an advanced packaging facility in the city together with Japan’s Trade Ministry.The two sides will soon sign a memorandum of understanding and form a 50-50 joint venture for the project, Taiwan’s United Daily News reported, without saying how large investment for the plant might be.“This would be a positive surprise for Japan’s semiconductor sector, including device firms and parts suppliers, due to the large investment,” said Kazuyoshi Saito, a senior analyst for Iwai Cosmo Securities. “While the scale is still unclear, we can expect there to be a certain amount of orders, which could accelerate the potentia...