* Note: Prices are in Million (M) USD.
Description:
GCT Semiconductor Holding Inc (GCTS) is a leading innovator in advanced semiconductor technologies, focusing on high-performance RF and mixed-signal solutions designed for the mobile and communications sectors. With a strong emphasis on research and development, the company is well-equipped to meet the growing demands for efficiency and performance in the face of the rapid advancements in digital connectivity. Positioned to capitalize on the surge in 5G and IoT applications, GCT is poised to unlock significant growth opportunities for investors while maintaining its competitive advantage in the dynamic wireless communications market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1 M
Debt : $63 M
EBITDA : $-35 M
Net Debt (Debt - Cash): $62 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Real estate & construction
Industry: Blank checks
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 106.00
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 5 overlapping fiscal years (max 20).Average Free Cash Flow: $-22 M
Average Revenue: $14 M
Revenue Converted To Free Cash Flow (%): -158.2%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-09-30): $3 M
Revenue 4 Years Ago (2021-09-30): $26 M
Total Growth over 4 Years: -88.8%
4-Year Revenue CAGR (Historical): -42.1%
Forward 5-Year CAGR (Tapered): -37.9%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-09-30): $53 M
Share Count 5 Years Ago (2021-09-30): $44 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.02
Trailing 12-Month Earnings Per Share (EPS): $0.02
Average Earnings Per Share (EPS): $0.02
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Insufficient valid ROE years (found 1; need ≥ 3). Dropping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $1.59
52-Week Low: $0.90
Threshold Price (15% Above 52-Week Low): $1.04
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $115 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 5 points to above GCT Semiconductor Holding Inc (GCTS) stock.
Fair Value PE
9, Industry Based PE
18, Risk-Free Anchored PE (25% MoS)
17.36. Based on these 3 values, average assigned is
14.79. Value-Trades has assined P/E value
14.67. An average (Current Year EPS + Next Year EPS) earning per share is
$0.015.
Fair value using multiple P/Es (blended): $0.22 (PE 14.79 × EPS $0.02)
So the Final Fair Value is: $0.22
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.02
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 14.67 | $0.22 |
