Intrinsic value of Advanced Semiconductor Engineering ADR - ASX

Previous Close

$4.75

  Intrinsic Value

$0.90

stock screener

  Rating & Target

str. sell

-81%

Previous close

$4.75

 
Intrinsic value

$0.90

 
Up/down potential

-81%

 
Rating

str. sell

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 2017), $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 39.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  14.70
  13.73
  12.86
  12.07
  11.36
  10.73
  10.15
  9.64
  9.18
  8.76
  8.38
  8.04
  7.74
  7.47
  7.22
  7.00
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.77
  5.70
  5.63
  5.56
  5.51
  5.46
Revenue, $m
  11,212
  12,751
  14,391
  16,128
  17,961
  19,887
  21,907
  24,019
  26,223
  28,519
  30,910
  33,396
  35,981
  38,667
  41,458
  44,359
  47,375
  50,510
  53,771
  57,164
  60,696
  64,375
  68,209
  72,206
  76,374
  80,725
  85,267
  90,012
  94,969
  100,151
Variable operating expenses, $m
  10,152
  11,541
  13,020
  14,587
  16,240
  17,979
  19,800
  21,705
  23,693
  25,765
  27,883
  30,126
  32,458
  34,881
  37,399
  40,016
  42,736
  45,564
  48,506
  51,567
  54,753
  58,072
  61,531
  65,136
  68,897
  72,821
  76,919
  81,199
  85,671
  90,346
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
  10,152
  11,541
  13,020
  14,587
  16,240
  17,979
  19,800
  21,705
  23,693
  25,765
  27,883
  30,126
  32,458
  34,881
  37,399
  40,016
  42,736
  45,564
  48,506
  51,567
  54,753
  58,072
  61,531
  65,136
  68,897
  72,821
  76,919
  81,199
  85,671
  90,346
Operating income, $m
  1,060
  1,210
  1,371
  1,541
  1,720
  1,909
  2,107
  2,313
  2,529
  2,754
  3,026
  3,270
  3,523
  3,786
  4,059
  4,343
  4,638
  4,945
  5,265
  5,597
  5,943
  6,303
  6,678
  7,069
  7,478
  7,904
  8,348
  8,813
  9,298
  9,806
EBITDA, $m
  1,658
  1,886
  2,129
  2,385
  2,657
  2,942
  3,240
  3,553
  3,879
  4,218
  4,572
  4,940
  5,322
  5,719
  6,132
  6,561
  7,007
  7,471
  7,953
  8,455
  8,977
  9,522
  10,089
  10,680
  11,296
  11,940
  12,612
  13,313
  14,047
  14,813
Interest expense (income), $m
  66
  139
  186
  236
  290
  347
  407
  470
  536
  605
  677
  752
  830
  911
  996
  1,083
  1,175
  1,269
  1,368
  1,470
  1,577
  1,688
  1,803
  1,924
  2,049
  2,180
  2,316
  2,458
  2,606
  2,761
  2,924
Earnings before tax, $m
  920
  1,024
  1,134
  1,251
  1,374
  1,502
  1,637
  1,778
  1,925
  2,077
  2,275
  2,440
  2,612
  2,790
  2,976
  3,169
  3,369
  3,577
  3,794
  4,020
  4,255
  4,500
  4,755
  5,021
  5,298
  5,588
  5,890
  6,206
  6,537
  6,882
Tax expense, $m
  249
  277
  306
  338
  371
  406
  442
  480
  520
  561
  614
  659
  705
  753
  803
  856
  910
  966
  1,024
  1,085
  1,149
  1,215
  1,284
  1,356
  1,431
  1,509
  1,590
  1,676
  1,765
  1,858
Net income, $m
  672
  748
  828
  913
  1,003
  1,097
  1,195
  1,298
  1,405
  1,517
  1,661
  1,781
  1,907
  2,037
  2,172
  2,313
  2,459
  2,611
  2,770
  2,934
  3,106
  3,285
  3,471
  3,665
  3,868
  4,079
  4,300
  4,531
  4,772
  5,024

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  14,050
  15,979
  18,034
  20,210
  22,507
  24,922
  27,452
  30,099
  32,860
  35,738
  38,734
  41,850
  45,089
  48,455
  51,953
  55,588
  59,367
  63,295
  67,382
  71,634
  76,060
  80,670
  85,475
  90,483
  95,707
  101,159
  106,851
  112,796
  119,009
  125,503
Adjusted assets (=assets-cash), $m
  14,050
  15,979
  18,034
  20,210
  22,507
  24,922
  27,452
  30,099
  32,860
  35,738
  38,734
  41,850
  45,089
  48,455
  51,953
  55,588
  59,367
  63,295
  67,382
  71,634
  76,060
  80,670
  85,475
  90,483
  95,707
  101,159
  106,851
  112,796
  119,009
  125,503
Revenue / Adjusted assets
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
  0.798
Average production assets, $m
  5,606
  6,376
  7,195
  8,064
  8,980
  9,944
  10,954
  12,009
  13,111
  14,260
  15,455
  16,698
  17,990
  19,334
  20,729
  22,180
  23,687
  25,255
  26,885
  28,582
  30,348
  32,188
  34,104
  36,103
  38,187
  40,363
  42,634
  45,006
  47,485
  50,076
Working capital, $m
  -1,121
  -1,275
  -1,439
  -1,613
  -1,796
  -1,989
  -2,191
  -2,402
  -2,622
  -2,852
  -3,091
  -3,340
  -3,598
  -3,867
  -4,146
  -4,436
  -4,737
  -5,051
  -5,377
  -5,716
  -6,070
  -6,438
  -6,821
  -7,221
  -7,637
  -8,073
  -8,527
  -9,001
  -9,497
  -10,015
Total debt, $m
  3,444
  4,376
  5,368
  6,419
  7,529
  8,695
  9,917
  11,195
  12,529
  13,919
  15,366
  16,871
  18,436
  20,062
  21,751
  23,507
  25,332
  27,229
  29,203
  31,257
  33,395
  35,622
  37,942
  40,361
  42,884
  45,518
  48,267
  51,138
  54,139
  57,276
Total liabilities, $m
  6,786
  7,718
  8,710
  9,762
  10,871
  12,037
  13,260
  14,538
  15,872
  17,262
  18,709
  20,213
  21,778
  23,404
  25,093
  26,849
  28,674
  30,572
  32,545
  34,599
  36,737
  38,964
  41,284
  43,703
  46,227
  48,860
  51,609
  54,481
  57,481
  60,618
Total equity, $m
  7,264
  8,261
  9,323
  10,449
  11,636
  12,885
  14,193
  15,561
  16,989
  18,477
  20,025
  21,636
  23,311
  25,051
  26,860
  28,739
  30,693
  32,724
  34,836
  37,035
  39,323
  41,707
  44,190
  46,780
  49,481
  52,299
  55,242
  58,316
  61,528
  64,885
Total liabilities and equity, $m
  14,050
  15,979
  18,033
  20,211
  22,507
  24,922
  27,453
  30,099
  32,861
  35,739
  38,734
  41,849
  45,089
  48,455
  51,953
  55,588
  59,367
  63,296
  67,381
  71,634
  76,060
  80,671
  85,474
  90,483
  95,708
  101,159
  106,851
  112,797
  119,009
  125,503
Debt-to-equity ratio
  0.470
  0.530
  0.580
  0.610
  0.650
  0.670
  0.700
  0.720
  0.740
  0.750
  0.770
  0.780
  0.790
  0.800
  0.810
  0.820
  0.830
  0.830
  0.840
  0.840
  0.850
  0.850
  0.860
  0.860
  0.870
  0.870
  0.870
  0.880
  0.880
  0.880
Adjusted equity ratio
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517
  0.517

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  672
  748
  828
  913
  1,003
  1,097
  1,195
  1,298
  1,405
  1,517
  1,661
  1,781
  1,907
  2,037
  2,172
  2,313
  2,459
  2,611
  2,770
  2,934
  3,106
  3,285
  3,471
  3,665
  3,868
  4,079
  4,300
  4,531
  4,772
  5,024
Depreciation, amort., depletion, $m
  599
  676
  758
  845
  936
  1,033
  1,134
  1,239
  1,349
  1,464
  1,545
  1,670
  1,799
  1,933
  2,073
  2,218
  2,369
  2,525
  2,689
  2,858
  3,035
  3,219
  3,410
  3,610
  3,819
  4,036
  4,263
  4,501
  4,748
  5,008
Funds from operations, $m
  1,271
  1,423
  1,586
  1,758
  1,939
  2,129
  2,329
  2,537
  2,754
  2,981
  3,206
  3,451
  3,706
  3,970
  4,245
  4,531
  4,828
  5,137
  5,458
  5,793
  6,141
  6,503
  6,881
  7,275
  7,686
  8,115
  8,563
  9,031
  9,520
  10,032
Change in working capital, $m
  -144
  -154
  -164
  -174
  -183
  -193
  -202
  -211
  -220
  -230
  -239
  -249
  -258
  -269
  -279
  -290
  -302
  -314
  -326
  -339
  -353
  -368
  -383
  -400
  -417
  -435
  -454
  -474
  -496
  -518
Cash from operations, $m
  1,414
  1,577
  1,750
  1,932
  2,122
  2,322
  2,531
  2,748
  2,975
  3,210
  3,445
  3,700
  3,964
  4,239
  4,524
  4,821
  5,130
  5,450
  5,784
  6,132
  6,494
  6,871
  7,265
  7,675
  8,103
  8,550
  9,018
  9,506
  10,016
  10,550
Maintenance CAPEX, $m
  -488
  -561
  -638
  -720
  -806
  -898
  -994
  -1,095
  -1,201
  -1,311
  -1,426
  -1,545
  -1,670
  -1,799
  -1,933
  -2,073
  -2,218
  -2,369
  -2,525
  -2,689
  -2,858
  -3,035
  -3,219
  -3,410
  -3,610
  -3,819
  -4,036
  -4,263
  -4,501
  -4,748
New CAPEX, $m
  -722
  -770
  -820
  -869
  -916
  -963
  -1,010
  -1,056
  -1,102
  -1,148
  -1,195
  -1,243
  -1,292
  -1,343
  -1,396
  -1,450
  -1,508
  -1,568
  -1,630
  -1,697
  -1,766
  -1,840
  -1,917
  -1,998
  -2,084
  -2,175
  -2,271
  -2,372
  -2,479
  -2,591
Cash from investing activities, $m
  -1,210
  -1,331
  -1,458
  -1,589
  -1,722
  -1,861
  -2,004
  -2,151
  -2,303
  -2,459
  -2,621
  -2,788
  -2,962
  -3,142
  -3,329
  -3,523
  -3,726
  -3,937
  -4,155
  -4,386
  -4,624
  -4,875
  -5,136
  -5,408
  -5,694
  -5,994
  -6,307
  -6,635
  -6,980
  -7,339
Free cash flow, $m
  204
  247
  293
  343
  399
  461
  526
  597
  672
  751
  824
  911
  1,002
  1,097
  1,195
  1,298
  1,404
  1,514
  1,628
  1,747
  1,870
  1,997
  2,129
  2,266
  2,409
  2,556
  2,710
  2,870
  3,037
  3,210
Issuance/(repayment) of debt, $m
  869
  932
  992
  1,051
  1,109
  1,166
  1,222
  1,278
  1,334
  1,390
  1,447
  1,505
  1,564
  1,626
  1,690
  1,756
  1,825
  1,898
  1,974
  2,054
  2,138
  2,227
  2,320
  2,419
  2,523
  2,633
  2,749
  2,872
  3,001
  3,137
Issuance/(repurchase) of shares, $m
  261
  250
  234
  212
  185
  152
  113
  70
  23
  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  
  1,130
  1,182
  1,226
  1,263
  1,294
  1,318
  1,335
  1,348
  1,357
  1,390
  1,447
  1,505
  1,564
  1,626
  1,690
  1,756
  1,825
  1,898
  1,974
  2,054
  2,138
  2,227
  2,320
  2,419
  2,523
  2,633
  2,749
  2,872
  3,001
  3,137
Total cash flow (excl. dividends), $m
  1,334
  1,428
  1,519
  1,607
  1,693
  1,778
  1,862
  1,945
  2,029
  2,141
  2,271
  2,416
  2,566
  2,723
  2,885
  3,054
  3,229
  3,412
  3,602
  3,801
  4,008
  4,224
  4,449
  4,685
  4,932
  5,190
  5,459
  5,742
  6,037
  6,347
Retained Cash Flow (-), $m
  -933
  -997
  -1,062
  -1,125
  -1,187
  -1,248
  -1,308
  -1,368
  -1,428
  -1,488
  -1,549
  -1,611
  -1,675
  -1,740
  -1,808
  -1,879
  -1,954
  -2,031
  -2,113
  -2,198
  -2,288
  -2,384
  -2,484
  -2,589
  -2,701
  -2,819
  -2,943
  -3,074
  -3,212
  -3,357
Prev. year cash balance distribution, $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 flow adjustment, $m
  20
  22
  26
  29
  32
  36
  40
  44
  48
  52
  57
  62
  67
  72
  77
  83
  89
  95
  101
  108
  114
  121
  129
  136
  144
  153
  161
  171
  180
  190
Cash available for distribution, $m
  401
  431
  457
  482
  506
  530
  554
  577
  601
  653
  722
  805
  892
  982
  1,076
  1,174
  1,276
  1,381
  1,490
  1,602
  1,719
  1,840
  1,966
  2,096
  2,231
  2,371
  2,517
  2,668
  2,825
  2,989
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
  385
  395
  397
  397
  392
  385
  374
  361
  345
  342
  343
  344
  339
  330
  316
  298
  278
  254
  229
  204
  178
  153
  129
  107
  87
  69
  54
  41
  31
  23
Current shareholders' claim on cash, %
  99.3
  98.8
  98.3
  98.0
  97.7
  97.5
  97.4
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3
  97.3

Advanced Semiconductor Engineering, Inc. is a provider of semiconductor packaging and testing services. The Company offers a range of semiconductors packaging, testing and electronic manufacturing services (EMS). The Company's segments include Packaging, Testing, EMS and Others. The Company provides services in packaging bare semiconductors into finished semiconductors with a range of electrical and thermal characteristics, as well as testing services, including front-end engineering testing, wafer probing and final testing services. It also sells goods from EMS. The Company engages in other activities, such as substrate production and real estate business. It provides integrated solutions for EMS in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis.

FINANCIAL RATIOS  of  Advanced Semiconductor Engineering ADR (ASX)

Valuation Ratios
P/E Ratio 52.5
Price to Sales 4.1
Price to Book 7.2
Price to Tangible Book
Price to Cash Flow 21.8
Price to Free Cash Flow 45.7
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 47%
Total Debt to Equity 71.4%
Interest Coverage 15
Management Effectiveness
Return On Assets 6.5%
Ret/ On Assets - 3 Yr. Avg. 6.9%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 8.3%
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 $9775 million for the last fiscal year's total revenue generated by Advanced Semiconductor Engineering ADR. The default revenue input number comes from 2017 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 14.7% 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 90.6%.

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 5.4% 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 0.2%.

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 50%.

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 -10%. 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 - $6331 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 8274 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 $39.3 billion.

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COMPANY NEWS

▶ ASE Technology Holding Co., Ltd. Chang of Company Name   [Jul-09-18 12:00AM  PR Newswire]
▶ Advanced Semiconductor Engineering: 1Q Earnings Snapshot   [Apr-27-18 05:09AM  Associated Press]
▶ 3 Tech Stocks Under $10 to Buy Now   [Feb-08-18 12:54PM  Zacks]
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