SIMO · Intrinsic value
Is Silicon Motion Technology Corporation (SIMO) overvalued or undervalued?
Silicon Motion Technology Corporation (SIMO) trades at the delayed market price of $220.80 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $219.50 a share (priced within our range of $103.87 – $269.06). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is SIMO fairly valued?
- Fair value
- $219.50
- Market price
- $220.80
- Downside to fair value
- 0.6%
- Verdict
- Priced within our range of $103.87 – $269.06
Reverse DCF, on our cash-flow model rather than the fair value above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is SIMO's TickerWorth Score?
A stronger business than most — priced richly vs peers
Compared with Technology companies in US
Its strongest point: growing quickly. Its weakest: looks expensive on the numbers.
- Value · 41 of 100
Cheaper than 41% of Technology companies in US
- Price vs worth · 50 of 100
- Quality · 66 of 100
More profitable than 66% of Technology companies in US
- Financial health · 68 of 100
Financially stronger than 68% of Technology companies in US
- Growth · 78 of 100
Growing faster than 78% of Technology companies in US
- Momentum · 64 of 100
Outperformed 64% of Technology companies in US over the past year
Confidence: Medium confidence · Scored
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SIMO DCF valuation, input by input
At a recent price of $220.80, Silicon Motion Technology Corporation (SIMO) trades roughly at TickerWorth's blended fair value of $219.50 per share. For this company that blend leans on peer multiples: our discounted-cash-flow model holds margins flat and fades growth toward a long-run rate, which systematically understates a business growing this fast, so its figure (about $40.50) is shown as a reference beside the range rather than blended into it. Our estimate sits below the market — read that as a statement about how the market prices SIMO against comparable companies, not as a finding that it is overvalued on cash flow. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Silicon Motion Technology Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 12.9%, with a long-run terminal growth rate of 2.5%. About 67% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — SIMO would need sustained revenue growth of more than 25%/yr to justify today's price, against about 16.6% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SIMO's modeled DCF value ranges from about $34.22 to $50.70 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Silicon Motion Technology Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SIMO's intrinsic value. Figures update as new filings and prices come in.
Every input behind SIMO's DCF
| Input | Value |
|---|---|
| Base-year revenueSilicon Motion Technology Corporation FY2025 20-F (accession 0001193125-26-197184): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $885,630,000 |
| Base EBIT marginSilicon Motion Technology Corporation FY2025 20-F (accession 0001193125-26-197184): us-gaap:OperatingIncomeLoss 93,037,000 / revenue 885,627,000 = 10.51%, FY2025. | 10.5% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 30% → 24% → 17% → 10% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.68 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 34M |
| Market priceDelayed quote · as of 2026-10-19 16:18 UTC | $220.80 |
Change SIMO's assumptions
The discount-rate dial and the editable model
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What does Silicon Motion Technology Corporation do?
What does it do?
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in China, Japan, Singapore, Taiwan, Korea, the United States, and internationally. It offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in enterprise and hyperscale data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It operates in the Semiconductors industry (Technology sector), headquartered in Hong Kong. The company employs roughly 2,009 people.
How does it make money?
The business turns $1.3B in annual revenue into profit. Out of every $100 of sales, about $22 is left as operating profit (operating margin of 22.4%), after a 49% gross margin on the products/services it sells. After all costs, taxes and interest, 22.1% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.1× equity), comfortably covers its short-term bills (2.5× current ratio), and is currently profitable.
Who at SIMO filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| SHIEH HAN-PING | Director | Open-market sale | $328,000.00 | Form 4 for SHIEH HAN-PING (opens sec.gov in a new tab) | |
| LIN KUAN-MING | Director | Open-market sale | $320,310.00 | Form 4 for LIN KUAN-MING (opens sec.gov in a new tab) | |
| LIN KUAN-MING | Director | Open-market sale | $300,000.00 | Form 4 for LIN KUAN-MING (opens sec.gov in a new tab) | |
| LIN KUAN-MING | Director | Open-market sale | $310,010.00 | Form 4 for LIN KUAN-MING (opens sec.gov in a new tab) | |
| SHIEH HAN-PING | Director | Open-market sale | $301,250.00 | Form 4 for SHIEH HAN-PING (opens sec.gov in a new tab) | |
| DUANN SHII TYNG | Director | Open-market sale | $367,500.00 | Form 4 for DUANN SHII TYNG (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4).
Common questions
What is SIMO's intrinsic value?
TickerWorth's blended fair value for Silicon Motion Technology Corporation (SIMO) is $219.50 per share, versus a market price of $220.80 (roughly at fair value).
Is SIMO overvalued or undervalued?
Our cash-flow model understates a business growing this fast, so we don't call SIMO overvalued on it. Against a blend that leans on peer multiples, the price of $220.80 sits roughly at our estimate. This is an educational estimate, not advice.
What discount rate is used for SIMO?
A WACC of 12.9% and a terminal growth rate of 2.5%.
Is Silicon Motion Technology stock undervalued?
TickerWorth's fair value for Silicon Motion Technology Corporation (SIMO) is $219.50 against a market price of $220.80. Our read: Priced within our range of $103.87 – $269.06. This is a model estimate, not investment advice.
Silicon Motion Technology (SIMO) DCF valuation and fair value
Our fair value for Silicon Motion Technology Corporation (SIMO) is $219.50, built on a 12.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Silicon Motion Technology stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $220.80. A model estimate, not investment advice.
Silicon Motion Technology (SIMO) insider trading
The most recent insider filing (SEC Form 4) for Silicon Motion Technology Corporation (SIMO): SHIEH HAN-PING, Director, open-market sale on 2026-06-18. The latest filings are listed on this page. A disclosure, not a signal to trade.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.