* Note: Prices are in Million (M) USD.
Description:
Silicon Motion Technology Corporation (SIMO) is a leading provider of NAND flash controllers, specializing in the design, development, and marketing of advanced semiconductor solutions for solid-state storage devices. Headquartered in Kowloon, Hong Kong, the company serves a global market, with a strong emphasis on enhancing the performance and efficiency of flash memory products. As a key player in the growing NAND flash memory sector, Silicon Motion is well-positioned to capitalize on the increasing demand for high-performance storage solutions across various applications, including mobile devices, computing, and data centers.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $199 M
Debt : $0 M
EBITDA : $0 M
This criteria used industry in which company operates:
Sector: Manufacturing
Industry: Semiconductors & related devices
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 20.74
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Error: Invalid income data provided.Using default values for calculation.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $34 M
Share Count 5 Years Ago (2020-12-31): $35 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.87
Trailing 12-Month Earnings Per Share (EPS): $3.59
Average Earnings Per Share (EPS): $4.23
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 2.28%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Error: Invalid income data provided.Skipping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $87.71
52-Week Low: $36.41
Threshold Price (15% Above 52-Week Low): $41.87
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,981 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 15 points to above Silicon Motion Technology (SIMO) stock.
Last 18 Years Avg PE
13.58, Fair Value PE
20, Industry Based PE
25, Risk-Free Anchored PE (25% MoS)
18.34. Based on these 4 values, average assigned is
19.23. Value-Trades has assined P/E value
19.23. An average (Current Year EPS + Next Year EPS) earning per share is
$4.2284.
Fair value using multiple P/Es (blended): $81.31 (PE 19.23 × EPS $4.23)
So the Final Fair Value is: $81.31
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $4.23
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 38.3 | $161.95 |
| 18 Yrs Avg-PE | 13.58 | $57.42 |
| Value-Trades Assigned | 19.23 | $81.31 |
