ACM Research Inc (ACMR, Financial) has recently seen a daily gain of 6.51%, and an impressive 3-month gain of 101.75%. Its Earnings Per Share (EPS) stands at 1.02. However, the question remains: is ACM Research significantly undervalued? This article aims to provide a comprehensive analysis of the company's valuation, encouraging readers to delve into the details below to gain a better understanding of ACM Research's true worth.
Company Introduction
ACM Research Inc is a US-based company engaged in developing, manufacturing, and selling single-wafer wet cleaning equipment. This equipment is used by semiconductor manufacturers in numerous manufacturing steps to remove particles, contaminants, and other random defects to improve product yield, in fabricating integrated circuits, or chips. The company's stock price currently stands at $19.63, while the GF Value, an estimation of fair value, is $55.05. This suggests that ACM Research (ACMR, Financial) could be significantly undervalued. To better understand this, let's delve deeper into the company's financials.
Understanding GF Value
The GF Value represents the current intrinsic value of a stock derived from our proprietary method. It is calculated based on historical multiples (PE Ratio, PS Ratio, PB Ratio, and Price-to-Free-Cash-Flow) that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of the business performance. The GF Value Line on our summary page provides an overview of the fair value that the stock should ideally be traded at. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. However, if it is significantly below the GF Value Line, its future return will likely be higher.
Based on this analysis, ACM Research appears to be significantly undervalued. With a current price of $19.63 per share and a market cap of $1.20 billion, ACM Research stock is likely to yield a much higher long-term return than its business growth.
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