It's been a great afternoon session for United Microelectronics investors, who saw their shares rise 1.9% to a price of $7.94 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of None and an average price to book (P/B) ratio of None. In contrast, United Microelectronics has a trailing 12 month P/E ratio of 8.9 and a P/B ratio of 0.28.
When we divide United Microelectronics's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -1.53. Since it's negative, the company has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.