# MediaTek (TWSE:2454)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/TWSE/2454

Price NT$3,390.00 (TWD), market cap NT$5.411T, Technology - Semiconductors.

## Valuation

- SE Reference Value (expected value, DCF): NT$6,783.83 (central 50% range NT$5,152.11 to NT$8,838.44), +100% against the price; range width wide
- SE Grade: 2 of 3 (Value 2, Quality 3, Moat 2)
- Consensus Rating: Strong Buy (Strong buy 19, Buy 7, Hold 1, Sell 0, Strong sell 0)
- Consensus Price (median): NT$5,861.00, +73% against the price

## Key metrics

Financials in TWD. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | NT$619.6B | CAGR 13.1% | CAGR 9.0% | P70 |
| Revenue growth | 6.1% | 12.3% | 11.2% | P3 |
| Gross margin | 46.2% | 47.8% | 45.4% | P23 |
| Operating margin | 15.3% | 19.3% | 15.0% | P20 |
| Net margin | 16.0% | 20.1% | 15.2% | P27 |
| FCF yield | 0.7% | 7.4% | 6.9% | P20 |
| FCF margin | 6.5% | 24.8% | 19.1% | P23 |
| FCF / net income | 0.41x | 1.34x | 1.22x | P17 |
| ROIC | 34.2% | 40.2% | 23.3% | P60 |
| ROE | 22.4% | 27.1% | 15.5% | P48 |
| ROA | 10.3% | 15.2% | 9.9% | P48 |
| EPS | NT$62.32 | CAGR 20.6% | CAGR 17.8% | - |
| EPS growth | -6.4% | 5.7% | 5.7% | P4 |
| Book value per share | NT$292.12 | CAGR 1.4% | CAGR 5.4% | - |
| FCF per share | NT$25.34 | CAGR 14.5% | CAGR 21.1% | - |
| Dividend per share | NT$53.50 | CAGR 7.7% | CAGR 21.2% | - |
| Dividend yield | 1.6% | 7.1% | 4.3% | P74 |
| Payout ratio (FY2025) | 81.0% | 102.4% | 80.9% | P96 |
| Diluted shares | 1,596.1M | CAGR 0.1% | CAGR 0.2% | P60 |
| Buyback yield | 0.1% | -0.1% | -0.2% | P60 |
| Debt/equity | 0.09x | 0.03x | 0.10x | P57 |
| Enterprise value | NT$5.214T | CAGR 24.0% | CAGR 24.6% | P70 |
| Long-term debt (FY2025) | NT$8.225B | CAGR 28.3% | CAGR 39.9% | P40 |

## Company Note (Q3 2026)

Written by AI from the data above.

**MediaTek's third quarter came** in ahead of its own guidance. Revenue rose 18.3% to NT$168.1B, which management credited to better-than-expected customer demand and improving supply. Flagship mobile outperformed as customers launched AI smartphones built on MediaTek chips. Smart edge growth came from volume production of a 5G thin modem, AI tablets, AI PCs and automotive cockpits. Diluted EPS of NT$17.50 grew more slowly than sales. The stock trades well below SE fair value of NT$6,784, which is 100.1% above the price.

**Management raised its full-year target** and now expects revenue growth above the previous high single-digit pace in US dollars. It guided fourth-quarter gross margin to about 45% and said it is confident of $2.5 billion in cloud AI accelerator revenue in the quarter. The CEO said, "We are now able to deliver a highly competitive custom silicon for data centers." Analysts pressed on delays to the second-generation ASIC tape-out. Management said the dies are on schedule, with one complex die a few weeks later.

**Consensus sees EPS** up 9.5% in FY2026 on revenue growth of 15.0%. It then expects EPS to rise 113.7% in FY2027, the year the custom accelerator business would have to deliver. The price implies revenue growth of 19.0% a year over five years, above the 15.0% consensus figure for FY2026. That makes the FY2027 step-up central to the valuation. MediaTek has beaten the EPS estimate in 7 of the last 8 quarters.

**Returns have strengthened** while margins have thinned. ROIC moved from 38.5% in FY2022 to 47.9% in FY2025. Over the same period, operating margin fell from 23.1% to 17.4%. Operating margin now stands below its five-year median, worse over three years, at the 20th percentile of its size peers. Cash conversion is the weak point: free cash flow is now 0.41x net income, against a five-year median of 1.34x, at the 17th percentile of peers. That conversion, together with slimmer margins, holds Quality back.

**On earnings multiples the stock looks expensive**. EV/EBIT of 55.0x sits 244% above its ten-year median of 16.0x. SE fair value of NT$6,784 is 100.1% above the price, so the two measures point opposite ways. Fair value rests on a low-confidence model and the estimate is uncertain. The median analyst target is 72.9% above the price. Debt/equity of 0.09x is 198% above its five-year median, though it remains small. For the price to hold, accelerator revenue must ramp as guided, and packaging yields must stay on track. Fourth-quarter AI accelerator sales falling short of $2.5 billion would show it is not.

**The SE Score** is 2 of 3. Quality earns three stars on a return on invested capital of 47%, far above the cost of capital. Free cash flow averaged 117% of net income over five years, and the balance sheet holds net cash. Moat earns two stars: return on invested capital topped 15% in six of the last ten years, with a ten-year median of 23%, and gross margin has held stable. Value earns two stars. The price left the business tier as it was, with the stock near SE fair value on its own multiple, since the cash-flow model and the stock's P/E history disagreed.

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Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology