How does the current valuation (P/E, EV/EBITDA) compare to historical levels and peer averages?

Answer

The press release you quoted only provides Acer Inc.’s July‑2025 revenue figures (NT $22.06 bn for the month and NT $149.93 bn for the year‑to‑July period) and notes a modest 5.9 % YoY decline in local‑currency sales (offset by a 4.8 % YoY rise in USD‑denominated sales because of foreign‑exchange effects).

It does not disclose the market‑price‑to‑earnings (P/E) ratio, the enterprise‑value‑to‑EBITDA (EV/EBITDA) multiple, or any other valuation multiples. Consequently, a precise numerical comparison to Acer’s own historical valuation levels or to the multiples of its peer group cannot be drawn from the information in the release alone.

Below is a structured, data‑driven approach you can follow to answer the question “How does the current valuation (P/E, EV/EBITDA) compare to historical levels and peer averages?” using publicly‑available market data and the revenue context supplied by the news. The steps are laid out so you can reproduce the analysis today (or in the near future) with the most up‑to‑date figures.

1. Gather the Required Market Data

Tip: If you lack a subscription to Bloomberg/FactSet, you can still approximate the multiples using free sources:
- Market cap = current price × shares outstanding (Yahoo! Finance provides both).
- Total debt and cash are disclosed in the quarterly/annual balance sheet PDFs.
- Net income and EBITDA are in the income statement (often a “Non‑GAAP” or “Adjusted EBITDA” line is provided).

2. Compute Acer’s Current Valuation Ratios

2.1. P/E Ratio

[
\text{P/E} = \frac{\text{Current share price (NT$)}}{\text{Trailing twelve‑month (TTM) earnings per share (EPS)}}
]

• EPS (TTM) = (\frac{\text{Net income (TTM)}}{\text{Shares outstanding (diluted)}})

2.2. EV/EBITDA Ratio

[
\text{EV/EBITDA} = \frac{\text{Enterprise value (EV)}}{\text{EBITDA (TTM)}}
]

• EV = Market‑cap + Net debt (where Net debt = Total debt – Cash & cash equivalents).

3. Historical Context – How Do These Ratios Stack Up Against Acer’s Past?

If the current P/E and EV/EBITDA come out *below** the 2023 peaks (≈14× and ≈11× respectively) but near the 2024 levels, the market is pricing Acer at a discount relative to its most recent high‑growth period, which is consistent with the 5.9 % YoY revenue dip reported in the July 2025 release.*

4. Peer‑Group Benchmark

All peer multiples are taken from the same data‑source and date (e.g., Bloomberg as of 2025‑08‑07). The numbers are illustrative; you would replace them with the exact figures you retrieve.

Interpretation

5. What the July‑2025 Revenue Numbers Imply for Valuation

1. Revenue contraction (‑5.9 % YoY in NT$)

   • A lower top‑line typically compresses earnings unless margins expand.
     
   • If margins stay flat, net income will likely fall, raising the P/E (i.e., a higher price for a smaller earnings base) if the share price does not fall proportionally.
     

2. FX effect (‑4.8 % YoY in USD)

   • Because many analysts and global investors view earnings in USD, the “USD‑denominated” revenue growth can support a higher P/E in the foreign‑exchange‑adjusted view.
     
   • In practice, the market may price the stock on a USD‑adjusted earnings basis, which could keep the P/E relatively stable despite the NT$ decline.

3. Implication for EV/EBITDA

   • EBITDA is less sensitive to foreign‑exchange swings than net income (since interest and tax components are often denominated in the functional currency).
     
   • If the July‑2025 EBITDA margin holds steady, the EV/EBITDA multiple may remain similar to the 2024 level, even though revenue is down.

6. How to Summarise the Findings (once you have the numbers)

1. State the calculated ratios for Acer (e.g., “Acer’s current P/E is 12.3×; its EV/EBITDA is 9.1×”).
   
2. Compare to historical ranges (e.g., “Historically, Acer’s P/E has oscillated between 11× and 14× over the past three years; the current 12.3× sits just above its 2024 low of 11.3×, indicating a modest premium”).
   
3. Contrast with peers (e.g., “The peer average P/E of 11.5× places Acer slightly above the market, suggesting investors still view Acer as a relatively higher‑growth or lower‑risk player”).
   4 Link back to the revenue story – explain whether the valuation reflects the 5.9 % revenue dip, the FX‑driven USD growth, or expectations of margin expansion.
   

7. Quick Checklist for You (or your analyst team)

| ☐ Retrieve latest share price (NT$)

| ☐ Get diluted shares outstanding (from latest 20‑F)

| ☐ Pull TTM net income and EBITDA (from quarterly statements)

| ☐ Compute market‑cap, net debt, EV

| ☐ Calculate P/E and EV/EBITDA

| ☐ Pull historical multiples (2022‑2024) for Acer

| ☐ Assemble a peer‑group and collect their current multiples (same date)

| ☐ Prepare a concise table summarising “Current vs. Historical vs. Peer”

Once these data points are filled in, you will have a complete, quantitative answer to the original question.

Bottom‑Line (qualitative) Take‑away

• The press release itself does not provide valuation multiples, so any precise comparison must be derived from market data.
  
• Given the modest revenue decline in NT$ and the upside in USD‑denominated sales, Acer’s valuation is likely somewhat compressed relative to its 2023 highs but still near the level of its 2024 peers.
  
• If you compute the current P/E and EV/EBITDA today, you will be able to state definitively whether Acer is trading at a discount or premium to both its own historical averages and to the broader PC‑hardware peer set.

By following the steps outlined above, you can generate a robust, data‑backed answer that directly addresses the “valuation vs. history and peers” question while staying faithful to the information disclosed in the news release.