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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
United Microelectronics's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $-0.35.
The industry rank for United Microelectronics's Net-Net Working Capital or its related term are showing as below:
UMC's Price-to-Net-Net-Working-Capital is not ranked *
in the Semiconductors industry.
Industry Median: 11.76 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
United Microelectronics (NYSE:UMC) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
United Microelectronics Net-Net Working Capital Related Terms
United Microelectronics Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for United Microelectronics's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
United Microelectronics Net-Net Working Capital Chart
UMC vs NVDA, AVGO, MU: Net-Net Working Capital Comparison
For the Semiconductors subindustry, United Microelectronics's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Microelectronics Price-to-Net-Net-Working-Capital vs Semiconductors Industry
For the Semiconductors industry and Technology sector, United Microelectronics's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where United Microelectronics's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-0.35 mean?
United Microelectronics (UMC) has a Net-Net Working Capital of $-0.35 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on United Microelectronics According to the industry distribution chart, United Microelectronics ranks #999999 out of 531 companies in the Semiconductors industry.
Is United Microelectronics' Net-Net Working Capital too high?
United Microelectronics' current Net-Net Working Capital is $-0.35. Based on the distribution chart, United Microelectronics ranks #999999 out of 531 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, United Microelectronics has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Microelectronics' Net-Net Working Capital compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, United Microelectronics ranks #999999 out of 531 companies for Net-Net Working Capital. This places United Microelectronics in the lower half of its industry. The industry median Net-Net Working Capital is 11.76. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Semiconductors company?
The median Net-Net Working Capital among Semiconductors companies is 11.76, based on 531 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on United Microelectronics For the Semiconductors industry, the median Net-Net Working Capital is 11.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Microelectronics's current Net-Net Working Capital is $-0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, United Microelectronics (UMC) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.30, compared to a current price of $18.94 — trading 128.2% above its estimated fair value. The current Net-Net Working Capital is $-0.35. United Microelectronics' overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For United Microelectronics (UMC), the current Net-Net Working Capital is $-0.35 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Microelectronics (UMC) Overvalued in 2026?
Based on GuruFocus' analysis, United Microelectronics stock appears to be overvalued.
The current stock price of $18.94 is trading 128.2% above its estimated GF Value™ of $8.30.
GuruFocus considers United Microelectronics to be Significantly Overvalued.
Key valuation signals for UMC:
Net-Net Working Capital: $-0.35
GF Value™: $8.30 vs. price of $18.94 (128.2% above fair value)
No single metric tells the full story. See the UMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1980, United Microelectronics is the world's third-largest dedicated chip foundry, with close to 5% market share in 2025 after TSMC and SMIC. UMC's headquarters are in Hsinchu, Taiwan, and it operates 12 fabs in Taiwan, Mainland China, Japan and Singapore, with additional sales offices in Europe, the US, and South Korea. UMC features a diverse customer base that includes Texas Instruments, MediaTek, Intel, Broadcom, Novatek, and Realtek, supplying a wide range of products applied in communications, display, memory, automotive and more. UMC employs about 19,000 people as of February 2025.
79GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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