Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 47 , 01 December 2023


Open Access | Article

Valuation Analysis of Semiconductor Industry of US Based on Portfolio Principle

Yapeng Duan * 1 , Wenqing Wei 2
1 Jiangxi University of Finance and Economics
2 Hefei University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 47, 1-9
Published 01 December 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Yapeng Duan, Wenqing Wei. Valuation Analysis of Semiconductor Industry of US Based on Portfolio Principle. AEMPS (2023) Vol. 47: 1-9. DOI: 10.54254/2754-1169/47/20230360.

Abstract

Many of the world's semiconductor R&D, production and manufacturing technology companies are going public in the US, hoping to leverage the power of US stock market capitalization to promote their own companies and industries. Valuation of the semiconductor industry is therefore essential. This study evaluates US-listed semiconductor companies based on portfolio principles with an enterprise value greater than $50billion. In the benchmark portfolio, individual stock’s weights are assigned in accordance with the enterprise value weighting and a number of indicators are calculated based on fundamental data for comparison with the forecast portfolio. The paper uses absolute and relative valuation methods to value the forecast portfolio, and compares with benchmark portfolio on the derived results. Finally, conclusions and future investment outlook are drawn from the results of the comparative analysis. According to the analysis, investing in the semiconductor industry is a good choice. In fact, not only can investors share in the huge profits from the rapid development of the industry, the semiconductor industry itself can also benefit from the strong capital market, which is something that complements each other. These results shed light on guiding further exploration of valuation analysis of semiconductor industry.

Keywords

semiconductor, valuation, portfolio

References

1. Zhang, L., Ran, J., Qiao, S. Z., et al. (2019) Characterization of semiconductor photocatalysts. Chemical Society Reviews, 48(20), 5184-5206.

2. Jelinek, L. (2018) Global semiconductor market trends. IHS Markit, May.

3. Tahir, M., ur Rehman, Z., Javed, F. (2022). Asymmetric effects of inflation instability and GDP growth volatility on environmental quality in the USA. Human Nature Journal of Social Sciences, 3(1), 31-43.

4. Qiu, X. (2021) Research on domestic semiconductor enterprise valuation based on EVA model. Dissertation of Shanghai University of Finance and Economics.

5. McWilliams, J. (1966) Prices, Earnings and P-E Ratios: Financial Analysts Journal, 22.

6. Huang, Y. (2020) Research on valuation methods of semiconductor industry in China. Dissertation of Shanghai University of Finance and Economics.

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10. Liu, Y. (2019) Semiconductor industry investment value research report. Dissertation of Southwestern University of Finance and Economics.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-141-4
ISBN (Online)
978-1-83558-142-1
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/47/20230360
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated