Intrinsic value of Advanced Semiconductor Engineering ADR - ASX

Previous Close

$6.02

  Intrinsic Value

$2.66

stock screener

  Rating & Target

str. sell

-56%

  Value-price divergence*

+858%

Previous close

$6.02

 
Intrinsic value

$2.66

 
Up/down potential

-56%

 
Rating

str. sell

 
Value-price divergence*

+858%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ASX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 10.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.98
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
Revenue, $m
  8,837
  9,429
  10,045
  10,685
  11,352
  12,046
  12,770
  13,523
  14,309
  15,130
  15,986
  16,880
  17,814
  18,790
  19,811
  20,878
  21,995
  23,164
  24,388
  25,670
  27,012
  28,419
  29,893
  31,437
  33,057
  34,754
  36,534
  38,401
  40,359
  42,413
  44,568
Variable operating expenses, $m
 
  8,606
  9,166
  9,749
  10,355
  10,986
  11,643
  12,329
  13,044
  13,789
  14,568
  15,347
  16,196
  17,083
  18,011
  18,982
  19,997
  21,060
  22,173
  23,338
  24,559
  25,837
  27,177
  28,582
  30,054
  31,597
  33,216
  34,913
  36,693
  38,560
  40,519
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  8,010
  8,606
  9,166
  9,749
  10,355
  10,986
  11,643
  12,329
  13,044
  13,789
  14,568
  15,347
  16,196
  17,083
  18,011
  18,982
  19,997
  21,060
  22,173
  23,338
  24,559
  25,837
  27,177
  28,582
  30,054
  31,597
  33,216
  34,913
  36,693
  38,560
  40,519
Operating income, $m
  827
  823
  879
  937
  997
  1,060
  1,126
  1,195
  1,266
  1,340
  1,418
  1,533
  1,618
  1,707
  1,800
  1,897
  1,998
  2,104
  2,215
  2,332
  2,454
  2,581
  2,715
  2,856
  3,003
  3,157
  3,319
  3,488
  3,666
  3,853
  4,048
EBITDA, $m
  1,773
  1,366
  1,455
  1,548
  1,644
  1,745
  1,849
  1,959
  2,073
  2,191
  2,315
  2,445
  2,580
  2,721
  2,869
  3,024
  3,186
  3,355
  3,532
  3,718
  3,912
  4,116
  4,330
  4,553
  4,788
  5,034
  5,291
  5,562
  5,845
  6,143
  6,455
Interest expense (income), $m
  66
  83
  96
  108
  122
  136
  150
  165
  181
  197
  214
  232
  251
  270
  291
  312
  334
  357
  382
  407
  434
  462
  491
  522
  554
  588
  623
  660
  699
  740
  782
Earnings before tax, $m
  901
  739
  783
  828
  875
  925
  976
  1,029
  1,085
  1,143
  1,204
  1,301
  1,367
  1,437
  1,509
  1,585
  1,664
  1,747
  1,834
  1,925
  2,020
  2,120
  2,224
  2,334
  2,449
  2,569
  2,696
  2,828
  2,967
  3,113
  3,266
Tax expense, $m
  163
  200
  211
  224
  236
  250
  263
  278
  293
  309
  325
  351
  369
  388
  407
  428
  449
  472
  495
  520
  545
  572
  601
  630
  661
  694
  728
  764
  801
  840
  882
Net income, $m
  697
  540
  572
  605
  639
  675
  712
  751
  792
  835
  879
  950
  998
  1,049
  1,102
  1,157
  1,215
  1,275
  1,339
  1,405
  1,475
  1,547
  1,624
  1,704
  1,788
  1,876
  1,968
  2,065
  2,166
  2,272
  2,384

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,342
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  11,507
  10,850
  11,559
  12,296
  13,063
  13,862
  14,694
  15,562
  16,467
  17,410
  18,396
  19,424
  20,499
  21,623
  22,797
  24,026
  25,311
  26,656
  28,065
  29,540
  31,085
  32,703
  34,399
  36,176
  38,040
  39,993
  42,042
  44,190
  46,443
  48,807
  51,286
Adjusted assets (=assets-cash), $m
  10,165
  10,850
  11,559
  12,296
  13,063
  13,862
  14,694
  15,562
  16,467
  17,410
  18,396
  19,424
  20,499
  21,623
  22,797
  24,026
  25,311
  26,656
  28,065
  29,540
  31,085
  32,703
  34,399
  36,176
  38,040
  39,993
  42,042
  44,190
  46,443
  48,807
  51,286
Revenue / Adjusted assets
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
Average production assets, $m
  4,771
  5,092
  5,424
  5,770
  6,130
  6,505
  6,896
  7,303
  7,727
  8,170
  8,632
  9,115
  9,619
  10,147
  10,698
  11,274
  11,878
  12,509
  13,170
  13,862
  14,587
  15,346
  16,142
  16,976
  17,851
  18,767
  19,729
  20,737
  21,794
  22,903
  24,067
Working capital, $m
  1,232
  1,160
  1,236
  1,314
  1,396
  1,482
  1,571
  1,663
  1,760
  1,861
  1,966
  2,076
  2,191
  2,311
  2,437
  2,568
  2,705
  2,849
  3,000
  3,157
  3,323
  3,496
  3,677
  3,867
  4,066
  4,275
  4,494
  4,723
  4,964
  5,217
  5,482
Total debt, $m
  3,571
  2,733
  3,099
  3,480
  3,877
  4,290
  4,720
  5,169
  5,636
  6,124
  6,634
  7,165
  7,721
  8,302
  8,909
  9,544
  10,209
  10,904
  11,633
  12,395
  13,194
  14,030
  14,907
  15,826
  16,790
  17,800
  18,859
  19,969
  21,134
  22,356
  23,638
Total liabilities, $m
  6,449
  5,610
  5,976
  6,357
  6,754
  7,167
  7,597
  8,046
  8,513
  9,001
  9,511
  10,042
  10,598
  11,179
  11,786
  12,421
  13,086
  13,781
  14,510
  15,272
  16,071
  16,907
  17,784
  18,703
  19,667
  20,677
  21,736
  22,846
  24,011
  25,233
  26,515
Total equity, $m
  5,059
  5,241
  5,583
  5,939
  6,310
  6,695
  7,097
  7,516
  7,953
  8,409
  8,885
  9,382
  9,901
  10,444
  11,011
  11,604
  12,225
  12,875
  13,555
  14,268
  15,014
  15,796
  16,615
  17,473
  18,373
  19,317
  20,306
  21,344
  22,432
  23,574
  24,771
Total liabilities and equity, $m
  11,508
  10,851
  11,559
  12,296
  13,064
  13,862
  14,694
  15,562
  16,466
  17,410
  18,396
  19,424
  20,499
  21,623
  22,797
  24,025
  25,311
  26,656
  28,065
  29,540
  31,085
  32,703
  34,399
  36,176
  38,040
  39,994
  42,042
  44,190
  46,443
  48,807
  51,286
Debt-to-equity ratio
  0.706
  0.520
  0.560
  0.590
  0.610
  0.640
  0.670
  0.690
  0.710
  0.730
  0.750
  0.760
  0.780
  0.790
  0.810
  0.820
  0.840
  0.850
  0.860
  0.870
  0.880
  0.890
  0.900
  0.910
  0.910
  0.920
  0.930
  0.940
  0.940
  0.950
  0.950
Adjusted equity ratio
  0.432
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483
  0.483

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  697
  540
  572
  605
  639
  675
  712
  751
  792
  835
  879
  950
  998
  1,049
  1,102
  1,157
  1,215
  1,275
  1,339
  1,405
  1,475
  1,547
  1,624
  1,704
  1,788
  1,876
  1,968
  2,065
  2,166
  2,272
  2,384
Depreciation, amort., depletion, $m
  946
  543
  576
  611
  647
  684
  723
  764
  807
  851
  897
  912
  962
  1,015
  1,070
  1,127
  1,188
  1,251
  1,317
  1,386
  1,459
  1,535
  1,614
  1,698
  1,785
  1,877
  1,973
  2,074
  2,179
  2,290
  2,407
Funds from operations, $m
  1,422
  1,083
  1,148
  1,216
  1,286
  1,359
  1,436
  1,516
  1,599
  1,685
  1,776
  1,861
  1,960
  2,063
  2,171
  2,284
  2,402
  2,526
  2,656
  2,791
  2,933
  3,082
  3,238
  3,401
  3,573
  3,752
  3,941
  4,138
  4,345
  4,563
  4,791
Change in working capital, $m
  -253
  73
  76
  79
  82
  85
  89
  93
  97
  101
  105
  110
  115
  120
  126
  131
  137
  144
  151
  158
  165
  173
  181
  190
  199
  209
  219
  230
  241
  253
  265
Cash from operations, $m
  1,675
  1,010
  1,072
  1,137
  1,204
  1,274
  1,347
  1,423
  1,502
  1,585
  1,671
  1,751
  1,845
  1,943
  2,046
  2,153
  2,265
  2,382
  2,505
  2,634
  2,768
  2,909
  3,057
  3,211
  3,374
  3,544
  3,722
  3,909
  4,105
  4,310
  4,526
Maintenance CAPEX, $m
  0
  -477
  -509
  -542
  -577
  -613
  -650
  -690
  -730
  -773
  -817
  -863
  -912
  -962
  -1,015
  -1,070
  -1,127
  -1,188
  -1,251
  -1,317
  -1,386
  -1,459
  -1,535
  -1,614
  -1,698
  -1,785
  -1,877
  -1,973
  -2,074
  -2,179
  -2,290
New CAPEX, $m
  -875
  -321
  -332
  -346
  -360
  -375
  -391
  -407
  -425
  -443
  -462
  -483
  -504
  -527
  -551
  -576
  -603
  -631
  -661
  -692
  -725
  -759
  -796
  -834
  -874
  -917
  -961
  -1,008
  -1,057
  -1,109
  -1,163
Cash from investing activities, $m
  -1,388
  -798
  -841
  -888
  -937
  -988
  -1,041
  -1,097
  -1,155
  -1,216
  -1,279
  -1,346
  -1,416
  -1,489
  -1,566
  -1,646
  -1,730
  -1,819
  -1,912
  -2,009
  -2,111
  -2,218
  -2,331
  -2,448
  -2,572
  -2,702
  -2,838
  -2,981
  -3,131
  -3,288
  -3,453
Free cash flow, $m
  287
  212
  230
  248
  267
  286
  306
  326
  347
  369
  391
  405
  429
  454
  480
  507
  534
  563
  593
  624
  657
  691
  726
  763
  802
  842
  884
  928
  974
  1,022
  1,072
Issuance/(repayment) of debt, $m
  -225
  358
  366
  381
  397
  413
  430
  448
  468
  488
  509
  532
  556
  581
  607
  635
  665
  696
  728
  762
  799
  837
  877
  919
  963
  1,010
  1,059
  1,111
  1,165
  1,222
  1,282
Issuance/(repurchase) of shares, $m
  32
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -284
  358
  366
  381
  397
  413
  430
  448
  468
  488
  509
  532
  556
  581
  607
  635
  665
  696
  728
  762
  799
  837
  877
  919
  963
  1,010
  1,059
  1,111
  1,165
  1,222
  1,282
Total cash flow (excl. dividends), $m
  -148
  570
  597
  630
  664
  699
  736
  775
  815
  857
  901
  937
  985
  1,035
  1,087
  1,142
  1,199
  1,259
  1,321
  1,387
  1,456
  1,528
  1,603
  1,682
  1,765
  1,852
  1,943
  2,038
  2,138
  2,244
  2,354
Retained Cash Flow (-), $m
  -23
  -328
  -342
  -356
  -371
  -386
  -402
  -419
  -437
  -456
  -476
  -497
  -519
  -543
  -567
  -593
  -621
  -650
  -680
  -712
  -746
  -782
  -819
  -859
  -900
  -944
  -989
  -1,038
  -1,088
  -1,142
  -1,198
Prev. year cash balance distribution, $m
 
  146
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  388
  255
  273
  293
  313
  334
  356
  378
  401
  425
  440
  466
  492
  520
  548
  578
  609
  641
  675
  709
  746
  784
  823
  865
  908
  953
  1,001
  1,050
  1,102
  1,156
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  372
  233
  238
  241
  243
  243
  240
  236
  230
  223
  209
  199
  187
  175
  161
  147
  133
  118
  104
  90
  77
  65
  54
  44
  35
  28
  21
  16
  12
  9
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Advanced Semiconductor Engineering, Inc. provides semiconductor packaging and testing services in the United States, Taiwan, Asia, Europe, and internationally. It operates through Packaging, Testing, and Electronic Manufacturing Services segments. The company offers packaging services, including various packages, such as flip-chip ball grid array (BGA), flip-chip chip scale package, advanced chip scale packages, quad flat packages, thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, plastic BGAs, and 3D chip packages; stacked die solutions in various package types; and copper wire and silver bonding solutions. It also provides advanced packages, including wafer level chip scale, flip-chip (FC) chip scale, FC package in, FC BGA/HF FCBGA, FC and wire bonding, and integrated passive device packages; IC wire bonding packages, including lead frame-based package types, such as lead frame-based packages and substrate-based packages; system-in-package (SiP) products, as well as module assembly services; and interconnect materials. In addition, the company offers a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/ MEMS/discrete final testing, and test-related services, as well as drop shipment services. Further, it provides electronic manufacturing services in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. Advanced Semiconductor Engineering, Inc. was founded in 1984 and is based in Kaohsiung, Taiwan.

FINANCIAL RATIOS  of  Advanced Semiconductor Engineering ADR (ASX)

Valuation Ratios
P/E Ratio 66.5
Price to Sales 5.2
Price to Book 9.2
Price to Tangible Book
Price to Cash Flow 27.7
Price to Free Cash Flow 57.9
Growth Rates
Sales Growth Rate -3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -11.5%
Cap. Spend. - 3 Yr. Gr. Rate -1.6%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 46.9%
Total Debt to Equity 70.6%
Interest Coverage 15
Management Effectiveness
Return On Assets 6.5%
Ret/ On Assets - 3 Yr. Avg. 6.9%
Return On Total Capital 8%
Ret/ On T. Cap. - 3 Yr. Avg. 8.4%
Return On Equity 13.8%
Return On Equity - 3 Yr. Avg. 14.6%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 19.4%
Gross Margin - 3 Yr. Avg. 19.3%
EBITDA Margin 21.6%
EBITDA Margin - 3 Yr. Avg. 21.3%
Operating Margin 9.4%
Oper. Margin - 3 Yr. Avg. 9.8%
Pre-Tax Margin 10.2%
Pre-Tax Margin - 3 Yr. Avg. 10.1%
Net Profit Margin 7.9%
Net Profit Margin - 3 Yr. Avg. 8%
Effective Tax Rate 18.1%
Eff/ Tax Rate - 3 Yr. Avg. 17.5%
Payout Ratio 56.5%

ASX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ASX stock intrinsic value calculation we used $8837 million for the last fiscal year's total revenue generated by Advanced Semiconductor Engineering ADR. The default revenue input number comes from 2016 income statement of Advanced Semiconductor Engineering ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ASX stock valuation model: a) initial revenue growth rate of 6.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ASX is calculated based on our internal credit rating of Advanced Semiconductor Engineering ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Advanced Semiconductor Engineering ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ASX stock the variable cost ratio is equal to 91.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ASX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Advanced Semiconductor Engineering ADR.

Corporate tax rate of 27% is the nominal tax rate for Advanced Semiconductor Engineering ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ASX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ASX are equal to 54%.

Life of production assets of 10 years is the average useful life of capital assets used in Advanced Semiconductor Engineering ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ASX is equal to 12.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5059 million for Advanced Semiconductor Engineering ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1654.72 million for Advanced Semiconductor Engineering ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Advanced Semiconductor Engineering ADR at the current share price and the inputted number of shares is $10.0 billion.

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COMPANY NEWS

▶ Advanced Semiconductor Engineering posts 2Q profit   [Jul-28-17 08:03PM  Associated Press]
▶ Advanced Semiconductor Engineering posts 1Q profit   [Apr-28-17 05:02AM  Associated Press]
▶ Advanced Semiconductor Engineering Is Pumping Up Profits   [Jan-31-17 01:55PM  Motley Fool]
▶ Advanced Semiconductor Engineering posts 4Q profit   [Jan-26-17 05:00AM  Associated Press]
▶ Is XL Group Ltd (XL) Worthy of Your Portfolio?   [Dec-08-16 11:48AM  at Insider Monkey]
▶ Here is What Hedge Funds Think About Stericycle Inc (SRCL)   [Nov-30-16 10:37AM  at Insider Monkey]
▶ Joint Announcement by ASE and SPIL   [Nov-18-16 05:30AM  PR Newswire]
▶ ASE Hosts Forum on Supplier Sustainability   [04:05AM  Business Wire]
▶ Joint Statement by SPIL and ASE   [Jun-30-16 09:34AM  PR Newswire]
▶ Joint Announcement by ASE and SPIL   [09:00AM  PR Newswire]
▶ Apple's iPhone Faces Strong Headwinds In Japan   [Jun-28-16 04:20PM  at Investor's Business Daily]
▶ ASE Receives 2016 Asia Responsible Entrepreneurship Award   [Jun-23-16 05:00PM  Business Wire]
▶ Hedge Funds Like These 5 Taiwan ADRs   [Jun-09-16 09:32AM  at Insider Monkey]
▶ 3 Tech Stocks Waking Up After a Long Slumber   [May-31-16 02:17PM  at Investopedia]
▶ Joint Statement by ASE and SPIL   [05:45AM  PR Newswire]
▶ ADVANCED SEMICONDUCTOR ENGINEERING INC Financials   [01:04PM  EDGAR Online Financials]
▶ Orocobre Limited (ASX:ORE) (TOR:ORL) Company Presentation   [Apr-18-16 07:43PM  ABN Newswire]
▶ Investors Are Buzzing About These 5 Stocks Today   [Apr-07-16 11:49AM  at Insider Monkey]
▶ Convertible Note Extension   [Mar-29-16 12:40AM  at noodls]
Stock chart of ASX Financial statements of ASX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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