The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.63 is strong.
Powerchip Semiconductor Manufacturing has a Altman Z-Score of 3.49, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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.
TPE:6770 vs NVDA, AVGO, MU: Altman Z-Score Comparison
For the Semiconductors subindustry, Powerchip Semiconductor Manufacturing's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.
Powerchip Semiconductor Manufacturing Altman Z-Score vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Powerchip Semiconductor Manufacturing's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Powerchip Semiconductor Manufacturing's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Powerchip Semiconductor Manufacturing (TPE:6770) has a Altman Z-Score of 3.49 as of Jul. 02, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Powerchip Semiconductor Manufacturing and its competitors. This is 66% above median its historical median of 2.10. Over the past decade, Powerchip Semiconductor Manufacturing's Altman Z-Score has ranged from 0.74 to 4.05. According to the industry distribution chart, Powerchip Semiconductor Manufacturing ranks #629 out of 1013 companies in the Semiconductors industry, placing it in the top 62.1%.
Is Powerchip Semiconductor Manufacturing's Altman Z-Score too high?
Powerchip Semiconductor Manufacturing's current Altman Z-Score of 3.49 is 66% above median its 10-year median of 2.10. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 4.05. The Semiconductors industry median Altman Z-Score is 5.33. Powerchip Semiconductor Manufacturing's value of 3.49 is 34.5% below this industry median. Based on the distribution chart, Powerchip Semiconductor Manufacturing ranks #629 out of 1013 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Powerchip Semiconductor Manufacturing has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powerchip Semiconductor Manufacturing's Altman Z-Score compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Powerchip Semiconductor Manufacturing ranks #629 out of 1013 companies for Altman Z-Score. This places Powerchip Semiconductor Manufacturing in the lower half of its industry. The industry median Altman Z-Score is 5.33. Powerchip Semiconductor Manufacturing's value of 3.49 is 34.5% below this benchmark. Historically, Powerchip Semiconductor Manufacturing's own Altman Z-Score has ranged from 0.74 to 4.05 over the past decade. While the company's 10-year median is 2.10 vs. the industry median of 5.33, Powerchip Semiconductor Manufacturing has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Semiconductors company?
The median Altman Z-Score among Semiconductors companies is 5.33, based on 1,013 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Powerchip Semiconductor Manufacturing's current Altman Z-Score of 3.49 is 34.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Powerchip Semiconductor Manufacturing and its competitors. For the Semiconductors industry, the median Altman Z-Score is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powerchip Semiconductor Manufacturing's current Altman Z-Score is 3.49, which is 66% above median its own 10-year median of 2.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powerchip Semiconductor Manufacturing stock overvalued right now?
Based on GuruFocus' analysis, Powerchip Semiconductor Manufacturing (TPE:6770) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$26.90, compared to a current price of NT$74.30 — trading 176.2% above its estimated fair value. The current Altman Z-Score is 3.49, which is 66% above median its 10-year median of 2.10 and 34.5% below the Semiconductors industry median of 5.33. Powerchip Semiconductor Manufacturing's overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Powerchip Semiconductor Manufacturing (TPE:6770), the current Altman Z-Score is 3.49 as of Jul. 02, 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 Powerchip Semiconductor Manufacturing (TPE:6770) Overvalued in 2026?
Based on GuruFocus' analysis, Powerchip Semiconductor Manufacturing stock appears to be overvalued.
The current stock price of NT$74.30 is trading 176.2% above its estimated GF Value™ of NT$26.90.
GuruFocus considers Powerchip Semiconductor Manufacturing to be Significantly Overvalued.
Key valuation signals for TPE:6770:
Altman Z-Score: 3.49 (66% above median its 10-year median of 2.10)
GF Value™: NT$26.90 vs. price of NT$74.30 (176.2% above fair value)
Industry Position: 34.5% below the Semiconductors median (#629 of 1013)
No single metric tells the full story. See the TPE:6770 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powerchip Semiconductor Manufacturing Business Description
Powerchip Semiconductor Manufacturing Corp is engaged in the business of manufacturing and distributing memory components. The company is engaged in research and development, manufacturing, testing, packaging, and selling integrated circuit products. The company produces power-integrated circuits, discrete components, image sensors, and other related products. Geographically, the company earns the majority of its revenue from Taiwan.
61GF Score
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