Amkor Technology: The Story Behind Puzzling Valuation

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About: Amkor Technology, Inc. (AMKR)
by: Vasily Zyryanov
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Vasily Zyryanov
Long/short equity
Summary

AMKR has a considerable difference between bloated GAAP P/E and low EV/EBITDA.

That happened because of high depreciation, which has been taking a toll on operating and profit margins.

Despite high EPS growth prospects, the stock looks reasonably valued according to EV/EBITDA, P/Net CFFO, and P/FCFE.

Doing my regular stock screening, I came across Amkor Technology (AMKR), a semiconductor packaging and test services company, which trades at nearly insane 57.9x GAAP P/E and 42.6x Forward GAAP P/E. These figures