ASE Technology Holding Co., Ltd.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $2.75B normalized FCF base (year 1), derived from TTM EBIT of $2.48B (11.1% margin on $22.35B revenue) less 20% Taiwan tax plus D&A of ~16% of revenue less normalized maintenance capex of ~10% of revenue (below the current AI-packaging-supercycle capex rate of ~47% of revenue); FCF growth 25%/20%/15%/12%/10% years 1-5 then 8%/7%/6%/5%/4% years 6-10; 10% discount rate; 3% terminal growth; net debt $6.0B; 2.26B ADR-equivalent diluted shares.

Reasoning: DCF chosen because ASE is a highly capital-intensive but structurally profitable OSAT leader riding an AI/advanced-packaging upcycle; near-term FCF is currently suppressed by a $10.5B 2026 capex program, so the model normalizes capex toward a sustainable maintenance level once the buildout matures, using a higher discount rate to reflect Taiwan/geopolitical and capex-cycle risk versus the current AI-optimism-driven market price.