One-glance verdict
Overvalued
$6.17 our estimate vs market $39.17
Wall Street consensus: $54.94 (790.6% higher than our fair-value estimate)
535% above our estimate, beyond the bull case
Fundamentals snapshot
ASE Technology Holding Co., Ltd.
ASX · NYQ · Technology · Semiconductors
Current price
$39.17
52-week range
$13.35 - $47.93
Market cap
$86.47B
Balance sheet
Watch
6.89x Adequate
Net debt $9.35B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 8.4% last year.
- Reward Returns 19.9% on equity, ahead of 66% of its peers.
- Risk Net debt grew 29.9% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 0.7%).
What this company does
ASE Technology Holding Co., Ltd.
ASE Technology Holding is a Taiwanese company that makes and tests computer chips for other businesses that design them. Their main money comes from these chip manufacturing services, which are crucial because almost all electronics need these custom-made chips to work. They also do some real estate and other services, but that's a smaller part of their business.
How the company got here
ASE Technology Holding was founded in 1984 by brothers Jason and Richard Chang in Taiwan. They recognized that while chip design and manufacturing were getting a lot of attention, the crucial steps of packaging and testing the chips were often overlooked. ASE started by focusing on these essential but less glamorous parts of the semiconductor manufacturing process. Over the years, the company grew by expanding its capabilities beyond basic assembly to include more advanced packaging and testing services. A significant turning point was the 2018 merger with its competitor, Siliconware Precision Industries (SPIL), which created the combined entity known as ASE Technology Holding. This merger solidified its position as a dominant global player in semiconductor packaging and testing.
What it actually does
ASE Technology Holding is a critical player in the electronics industry, specializing in the behind-the-scenes work that makes our electronic devices function. Think of it like this: after a computer chip is made, it's like a tiny, fragile brain that needs to be protected and connected to everything else. ASE's job is to take these chips and put them into a protective casing (packaging) and then make sure they work perfectly (testing). They also provide services to help assemble entire electronic products. Essentially, they are the experts who ensure that the complex components inside our phones, computers, and cars are built, tested, and ready to perform.
ATM (Assembly, Testing, and Materials)
This is ASE's core business, focusing on the essential steps after a semiconductor chip has been manufactured. It involves packaging the delicate silicon chips into protective casings, which is crucial for their survival and performance. This segment also includes rigorous testing to ensure each chip meets quality and performance standards before it's used in electronic devices. Additionally, they are involved in the production of materials used in the packaging process, like substrates, which are like the foundation for the chip. This part of the business is vital for virtually all electronic devices, from smartphones to advanced computing systems.
EMS (Electronics Manufacturing Services)
Through its subsidiary USI (Universal Scientific Industrial), ASE offers broader electronics manufacturing services. This means they help assemble entire electronic products or modules, not just the individual chips. Companies that design electronic devices can outsource the complex task of building and assembling their products to ASE. This can include everything from designing the product's internal layout to sourcing components, assembling circuit boards, and finally putting the whole device together and shipping it. This segment is important for companies that want to bring their electronic products to market efficiently.
What management is betting on now
ASE's leadership is heavily focused on staying ahead in the rapidly evolving world of advanced technology, particularly in areas like artificial intelligence (AI) and high-performance computing. They are investing in developing more sophisticated packaging and testing techniques to handle the increasing complexity of new chips. This includes technologies like 'heterogeneous integration,' which means combining different types of chips or components into a single package to boost performance. By focusing on these cutting-edge solutions, ASE aims to be indispensable to companies developing the next generation of powerful AI hardware and other advanced electronic systems.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $6.17 vs current price $39.17
Wall Street consensus is the average analyst price target: $54.94 (790.6% higher than our fair-value estimate).
Our most-likely fair value is $6.17 a share — about 84.3% below today's price of $39.17, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $9.4B. Interest coverage 6.9x.
Net debt
$9.35B
Interest coverage
6.89x
ASE Technology Holding Co., Ltd.'s profit covers its interest bill about 6.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
ASX
BASELINE
ASE Technology Holding Co., Ltd.
Total debt $12.05B Interest coverage 6.89x This is the baseline the peer rows are being compared against.
Total debt $2.71B Interest coverage 6.20x -10% vs ASX Has roughly the same debt cushion as ASX.
Total debt $137.12M Interest coverage 100.59x +1,360% vs ASX Carries about 14.6x more debt cushion than ASX.
Total debt $27.76M Interest coverage 115.35x +1,574% vs ASX Carries about 16.7x more debt cushion than ASX.
Total debt $38.12M Interest coverage -293.99x -100% vs ASX This peer has almost no interest-payment cushion compared with ASX.
Total debt $489.34M Interest coverage 3.80x -45% vs ASX Carries about 1.8x less debt cushion than ASX.
What you should know
The case for and against ASX
3 Rewards
2 Risks
Rewards
-
Revenue grew 8.4% last year.
-
Returns 19.9% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Net debt grew 29.9% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
37.66x
Forward P/E
17.96x
P/B
6.61x
P/S
0.11x
EV/EBITDA
2.56x
PEG ratio
4.96x
Profitability
How much profit each dollar creates
Gross margin
20.8%
Operating margin
13.6%
Net margin
9.8%
ROE
19.9%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.87x
Current ratio
1.16x
Quick ratio
0.72x
Total debt
$12.05B
Total cash
$2.70B
Growth
How the business has been compounding
Revenue TTM
$24.05B
Revenue 5Y CAGR
-1.3%
EPS TTM
1.04
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$4.35B
Free CF TTM
$-721.31M
FCF margin
-3.0%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
39.8%
Last ex-div date
2026-07-06