Is Semiconductor Manufacturing International (SEHK:981) Overvalued On Its Earnings?

What happened: Semiconductor Manufacturing International ($981.HK) has seen its share price retreat sharply in recent months, prompting a review of whether its valuation still matches its earnings. Key numbers: P/E of 48.1x versus semiconductor industry average of 35.2x and peer group of about 59.1x. Why it matters: On a framework based on margins, growth, size and risk, the current 48.1x multiple screens above the level implied by fundamentals, so the shares appear overvalued on that basis. Community views are divided on capacity and pricing versus fixed costs and concentration risks. Market: -2.5% today ($45.90), -38.9% YTD, 0.9x vol — as of 08:00 UTC

Semiconductor Manufacturing International ($981.HK) has seen its share price retreat sharply in recent months, prompting a review of whether its valuation still matches its earnings.

On a framework based on margins, growth, size and risk, the current 48.1x multiple screens above the level implied by fundamentals, so the shares appear overvalued on that basis. Community views are divided on capacity and pricing versus fixed costs and concentration risks. Market: -2.5% today ($45.90), -38.9% YTD, 0.9x vol — as of 08:00 UTC