Silicon Motion Technology Stock Current Valuation
| SIMO Stock | USD 83.84 2.80 3.46% |
Valuation analysis of Silicon Motion Technology helps investors to measure Silicon Motion's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns.
Overvalued
Today
Please note that Silicon Motion's price fluctuation is very steady at this time. Calculation of the real value of Silicon Motion Technology is based on 3 months time horizon. Increasing Silicon Motion's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Silicon Motion is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Silicon Stock. However, Silicon Motion's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 83.84 | Real 77.67 | Hype 83.84 | Naive 76.03 |
The intrinsic value of Silicon Motion's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Silicon Motion's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Silicon Motion Technology helps investors to forecast how Silicon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Silicon Motion more accurately as focusing exclusively on Silicon Motion's fundamentals will not take into account other important factors: Silicon Motion Technology Company Current Valuation Analysis
Silicon Motion's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Silicon Motion Current Valuation | 2.48 B |
Most of Silicon Motion's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Silicon Motion Technology is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Silicon Motion Technology has a Current Valuation of 2.48 B. This is 87.16% lower than that of the Semiconductors & Semiconductor Equipment sector and 89.64% lower than that of the Information Technology industry. The current valuation for all United States stocks is 85.08% higher than that of the company.
Silicon Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Silicon Motion's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Silicon Motion could also be used in its relative valuation, which is a method of valuing Silicon Motion by comparing valuation metrics of similar companies.Silicon Motion is currently under evaluation in current valuation category among its peers.
Silicon Fundamentals
| Return On Equity | 0.12 | |||
| Return On Asset | 0.0452 | |||
| Profit Margin | 0.12 % | |||
| Operating Margin | 0.12 % | |||
| Current Valuation | 2.48 B | |||
| Shares Outstanding | 33.98 M | |||
| Shares Owned By Institutions | 83.17 % | |||
| Number Of Shares Shorted | 340.11 K | |||
| Price To Earning | 27.14 X | |||
| Price To Book | 3.30 X | |||
| Price To Sales | 3.45 X | |||
| Revenue | 803.55 M | |||
| Gross Profit | 378.3 M | |||
| EBITDA | 132.74 M | |||
| Net Income | 90.56 M | |||
| Cash And Equivalents | 179.86 M | |||
| Cash Per Share | 5.43 X | |||
| Total Debt | 2.53 M | |||
| Debt To Equity | 0.01 % | |||
| Current Ratio | 3.12 X | |||
| Book Value Per Share | 24.84 X | |||
| Cash Flow From Operations | 77.19 M | |||
| Short Ratio | 0.74 X | |||
| Earnings Per Share | 2.85 X | |||
| Price To Earnings To Growth | (4.43) X | |||
| Target Price | 114.0 | |||
| Number Of Employees | 1.82 K | |||
| Beta | 1.07 | |||
| Market Capitalization | 2.75 B | |||
| Total Asset | 1.03 B | |||
| Retained Earnings | 432.62 M | |||
| Working Capital | 597.23 M | |||
| Current Asset | 315.18 M | |||
| Current Liabilities | 88.29 M | |||
| Annual Yield | 0.02 % | |||
| Five Year Return | 2.61 % | |||
| Net Asset | 1.03 B |
About Silicon Motion Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Silicon Motion Technology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Silicon Motion using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Silicon Motion Technology based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Silicon Motion
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Silicon Motion position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Silicon Motion will appreciate offsetting losses from the drop in the long position's value.Moving against Silicon Stock
| 0.51 | VZ | Verizon Communications | PairCorr |
| 0.51 | T | ATT Inc | PairCorr |
| 0.5 | BRK-A | Berkshire Hathaway | PairCorr |
| 0.41 | PG | Procter Gamble | PairCorr |
| 0.37 | WNC | Wabash National | PairCorr |
The ability to find closely correlated positions to Silicon Motion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Silicon Motion when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Silicon Motion - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Silicon Motion Technology to buy it.
The correlation of Silicon Motion is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Silicon Motion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Silicon Motion Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Silicon Motion can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Silicon Motion Piotroski F Score and Silicon Motion Altman Z Score analysis. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Is Stock space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Silicon Motion. If investors know Silicon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Silicon Motion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Silicon Motion Technology is measured differently than its book value, which is the value of Silicon that is recorded on the company's balance sheet. Investors also form their own opinion of Silicon Motion's value that differs from its market value or its book value, called intrinsic value, which is Silicon Motion's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Silicon Motion's market value can be influenced by many factors that don't directly affect Silicon Motion's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Silicon Motion's value and its price as these two are different measures arrived at by different means. Investors typically determine if Silicon Motion is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Silicon Motion's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.