The Discounted Cash Flow (DCF) valuation of Realtek Semiconductor Corp (2379.TW) is 548.51 TWD. With the latest stock price at 578.00 TWD, the upside of Realtek Semiconductor Corp based on DCF is -5.1%.

Is 2379.TW a buy or a sell?

Based on the latest price of 578.00 TWD and our DCF valuation, Realtek Semiconductor Corp (2379.TW) is a sell. Selling 2379.TW stocks now will result in a potential gain of 5.1%.

	Range	Selected
WACC / Discount Rate	7.0% - 9.3%	8.1%
Long-term Growth Rate	2.0% - 4.0%	3.0%
Fair Price	401.36 - 908.38	548.51
Upside	-30.6% - 57.2%	-5.1%

578.00 TWD

Stock Price

548.51 TWD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

2379.TW DCF Valuation: Revenue & Expenses Forecast

(TWD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	113,394	134,828	144,519	164,673	187,829	217,540
% Growth	19%	19%	7%	14%	14%	16%

Cost of goods sold	(56,232)	(66,861)	(71,667)	(81,661)	(93,144)	(107,878)
% of Revenue	50%	50%	50%	50%	50%	50%

Selling, G&A expenses	(10,117)	(12,029)	(12,894)	(14,692)	(16,758)	(19,408)
% of Revenue	9%	9%	9%	9%	9%	9%

Research & Development	(33,544)	(39,884)	(42,751)	(48,713)	(55,563)	(64,352)
% of Revenue	30%	30%	30%	30%	30%	30%

Net interest & other expenses	2,840	3,376	3,619	4,124	4,704	5,448
% of Revenue	3%	3%	3%	3%	3%	3%

Tax expense	(1,050)	(824)	(883)	(1,007)	(1,148)	(1,330)
Tax rate	6%	4%	4%	4%	4%	4%

Net profit	15,292	18,606	19,943	22,725	25,920	30,020
% Margin	13%	14%	14%	14%	14%	14%