ASE Technology Holding Co., Ltd. (ASX)
Valuation Overview•Is ASE Technology Holding Co., Ltd. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
ASX struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-1.5% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 8.8%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $175.5B | +6.8% | -1.5% | +7.4% | +8.2% | |
| EBITDA | $36.6B | — | -4.7% | — | — | |
| Net Income | $14.3B | +23.3% | -13.4% | — | +7.3% | |
| EPS (Diluted) | $6.40 | +27.7% | -12.8% | +7.9% | +6.8% | |
| Free Cash Flow | -$7.8B | -774.8% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 18.3% | 16.0% | 17.2% | 16.8% |
| Operating Margin | 8.8% | 7.2% | 9.0% | 8.4% |
| Net Margin | 7.1% | 5.7% | 7.5% | 7.0% |
| FCF Margin | -0.9% | 2.1% | 2.4% | 3.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.17 | $0.20 | +17.4% | ||
| Q1'26 | $0.20 | $0.21 | +5.0% | ||
| Q4'25 | $0.14 | $0.16 | +16.3% | ||
| Q3'25 | $0.14 | $0.11 | -23.2% | ||
| Q2'25 | $0.11 | $0.10 | -7.1% | ||
| Q1'25 | $0.13 | $0.13 | +2.5% | ||
| Q4'24 | $0.13 | $0.13 | +0.8% | ||
| Q3'24 | $0.10 | $0.11 | +13.3% |
Total return is +293.8% (1Y), outperforming the benchmark by +268.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +140.6% | +131.3% | — |
| 1Y | +293.8% | +268.8% | +3.4% |
| 3YCAGR | +68.1% | +44.3% | +14.0% |
| 5YCAGR | +38.9% | +23.1% | +24.4% |
| 10YCAGR | +23.0% | +8.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about ASE Technology Holding Co., Ltd. (ASX) valuation, health, and returns.
ASE Technology Holding Co., Ltd. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -50.7% downside from DCF intrinsic value of $19.99)
ASE Technology Holding Co., Ltd. has multiple valuation anchors: DCF Intrinsic Value: $19.99 | Peer Relative Fair Value: $1783.21. A convergence of these signals offers higher conviction.
ASE Technology Holding Co., Ltd. displays fair financial health with a composite quality score of 44/100, supported by a Altman Z-Score of 0.8 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 7.6%.
ASE Technology Holding Co., Ltd. pays a 0.8% dividend yield, covered by a 57% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
ASE Technology Holding Co., Ltd.'s current growth trajectory is Accelerating. The company achieved +6.8% 1Y revenue growth and +27.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.5%.
Wall Street consensus is Buy based on 5 analysts, beating EPS expectations in 75% of recent quarters with a 3-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for ASE Technology Holding Co., Ltd. include: -16.7% 1-year max drawdown, high beta (1.87x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.87x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.