MediaTek (2454.TW)
Technology · TWSE · Taiwan
Fundamentals
Valuation and ratings
MediaTek trades at NT$3,455.00, which is 55% above the NT$1,570.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 72 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 59.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About MediaTek
MediaTek Inc. engages in the research, development, production, manufacture, and marketing of multimedia integrated circuits (ICs) in Taiwan, rest of Asia, and internationally. The company offers multimedia, computer peripherals oriented, consumer-oriented, and other ICs for various applications. It also offers design, test runs, maintenance and repair, and technological consultation services for software and hardware solutions; and sale and delegation patents and circuit layout rights for its ICs products. In addition, the company provides research, marketing, and technical services; intellectual property right management services; and general investing services. The company was incorporated in 1997 and is headquartered in Hsinchu City, Taiwan.
2454.TW passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is MediaTek (2454.TW) undervalued?
Against our discounted cash flow estimate of NT$1,570.00, 2454.TW at NT$3,455.00 is 55% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 2454.TW's P/E ratio?
2454.TW trades at 59.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.