UMC Valuation

United Microelectronics Corp

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7.260

+0.12(1.681%)1D

Overview
Forecast
Valuation
Earnings

UMC Relative Valuation

UMC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, UMC is overvalued; if below, it's undervalued.

Historical Valuation

United Microelectronics Corp (UMC) is now in the Fair zone, suggesting that its current forward PE ratio of 14.12 is considered Fairly compared with the five-year average of 11.68. The fair price of United Microelectronics Corp (UMC) is between 5.94 to 8.48 according to relative valuation methord.

Relative Value

Fair Zone

5.94-8.48

Current Price：7.26

Fair

16.62

Trailing

Forward

4.64

EV/EBITDA

United Microelectronics Corp. (UMC) has a current EV/EBITDA of 4.64. The 5-year average EV/EBITDA is 5.11. The thresholds are as follows: Strongly Undervalued below 2.89, Undervalued between 2.89 and 4.00, Fairly Valued between 6.22 and 4.00, Overvalued between 6.22 and 7.33, and Strongly Overvalued above 7.33. The current Forward EV/EBITDA of 4.64 falls within the Historic Trend Line -Fairly Valued range.

11.85

EV/EBIT

United Microelectronics Corp. (UMC) has a current EV/EBIT of 11.85. The 5-year average EV/EBIT is 9.91. The thresholds are as follows: Strongly Undervalued below 3.56, Undervalued between 3.56 and 6.73, Fairly Valued between 13.09 and 6.73, Overvalued between 13.09 and 16.26, and Strongly Overvalued above 16.26. The current Forward EV/EBIT of 11.85 falls within the Historic Trend Line -Fairly Valued range.

2.32

United Microelectronics Corp. (UMC) has a current PS of 2.32. The 5-year average PS is 2.59. The thresholds are as follows: Strongly Undervalued below 1.72, Undervalued between 1.72 and 2.15, Fairly Valued between 3.03 and 2.15, Overvalued between 3.03 and 3.46, and Strongly Overvalued above 3.46. The current Forward PS of 2.32 falls within the Historic Trend Line -Fairly Valued range.

6.68

P/OCF

United Microelectronics Corp. (UMC) has a current P/OCF of 6.68. The 5-year average P/OCF is 6.43. The thresholds are as follows: Strongly Undervalued below 4.07, Undervalued between 4.07 and 5.25, Fairly Valued between 7.60 and 5.25, Overvalued between 7.60 and 8.78, and Strongly Overvalued above 8.78. The current Forward P/OCF of 6.68 falls within the Historic Trend Line -Fairly Valued range.

12.69

P/FCF

United Microelectronics Corp. (UMC) has a current P/FCF of 12.69. The 5-year average P/FCF is 17.46. The thresholds are as follows: Strongly Undervalued below -60.81, Undervalued between -60.81 and -21.67, Fairly Valued between 56.59 and -21.67, Overvalued between 56.59 and 95.72, and Strongly Overvalued above 95.72. The current Forward P/FCF of 12.69 falls within the Historic Trend Line -Fairly Valued range.

United Microelectronics Corp (UMC) has a current Price-to-Book (P/B) ratio of 0.00. Compared to its 3-year average P/B ratio of 3.14 , the current P/B ratio is approximately -100.00% higher. Relative to its 5-year average P/B ratio of 2.87, the current P/B ratio is about -100.00% higher. United Microelectronics Corp (UMC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.34%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.29% , the current FCF yield is about -100.00% lower.

8.18

P/B

Median3y

3.14

Median5y

2.87

6.36

FCF Yield

Median3y

3.34

Median5y

5.29

Competitors Valuation Multiple

The average P/S ratio for UMC's competitors is 4.33, providing a benchmark for relative valuation. United Microelectronics Corp Corp (UMC) exhibits a P/S ratio of 2.32, which is -46.31% above the industry average. Given its robust revenue growth of 8.37%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

UMC.N

United Microelectronics Corp

ASE Technology Holding Co Ltd

Advanced Micro Devices Inc

Micron Technology Inc

Performance Decomposition

Market capitalization of UMC decreased by 13.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 60.34 to 69.84.

The secondary factor is the Revenue Growth, contributed 8.37%to the performance.

Overall, the performance of UMC in the past 1 year is driven by P/E Change. Which is more unsustainable.

8.37%

1.76B → 1.90B

Revenue Growth

-37.90%

24.25 → 15.06

Margin Expansion

15.75%

60.34 → 69.84

P/E Change

-13.78%