| Summary: | 碩士 === 國立中正大學 === 企業管理研究所 === 103 === The automotive electronics market has manifested rapid growth in recent years. Subsequently, the development of automotive safety electronics in the market is the most notable. Following the anti-lock braking system (ABS) and air bag restraint system (ABRS), tire pressure monitoring systems (TPMS) are mandatory equipments on new cars in many markets. This regulation was first stipulated by law in the United States, followed by the European Union, South Korea, and Japan, among others. Consequently, TMPS have become one of the most important automotive safety systems. Supported by global regulatory norms, the sales of TPMS have increased exponentially. As a result, numerous companies compete to invest in related industries. This study employed the free cash flow discount method to evaluate the intrinsic values of two firms in the TPMS industry. Additionally, they conducted a sensitivity analysis to identify the key value drivers that affect the business value.
Conclusions of this study are as follows:
1. The key value drivers of CUB Elecparts Inc. found in descending order of importance are WACC, competitive advantage period, and tax rate.
2. CUB Elecparts Inc. has an intrinsic value of NTD 74.73 per share which is lower than market price trading at NTD 295 on January 5, 2015.
3. The key value drivers of Tung Thih Electronic Co. Ltd. found in descending order of importance are WACC, tax rate, and competitive advantage period.
4. Tung Thih Electronic Co. Ltd. has an intrinsic value of NTD 59.26 per share which is lower than market price trading at NTD 111.5 on January 5, 2015.
|
|---|
