Rechi Precision Co Ltd (4532) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Rechi Precision Co Ltd stock TWD 38.02, price TWD 22.35, upside +70.1%, quality 55 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range 14.43 TWD – 31.85 TWD · fair‑value band 26.62 TWD – 49.43 TWD · the 22.35 TWD price screens below the 38.02 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Rechi Precision Co., Ltd. manufactures and sells compressors primarily in Taiwan. It provides rotary compressors, BLDC and induction motors, universal motors, shaded pole motors, and household and commercial heat pumps.
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The company was formerly known as RECHI INDUSTRIAL CO., LTD. The company was incorporated in 1989 and is based in Taoyuan City, Taiwan.
Stock analysis
Rechi Precision Co Ltd (4532) currently trades at 22.35 TWD, while our model-based Fair Value estimate is 38.02 TWD, implying the stock looks roughly 41% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of 45.32 TWD per share, and 21 of the 26 models we run sit above the 22.35 TWD price.
Bear case: the Asset-Based group reads lowest at 7.47 TWD, and 5 of the 26 models stay below the price. Data coverage for this calculation is low.
Scenario range: 26.62 TWD (bear) to 49.43 TWD (bull), the price of 22.35 TWD sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 55/100 (solid quality), in the Industrials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Rechi Precision Co Ltd reported revenue of 20.3B TWD in FY2025 versus 22.6B TWD in FY2021, a compound −2.7%/yr. Reported net income was 1.0B TWD in FY2025, compounding +17.0%/yr from FY2021.
Key figures
Market cap 11.2B TWD (≈ $341M) Small · P/E ratio 12.0 · P/S ratio 0.54 · EPS (TTM) 1.86 TWD · Dividend yield 6.7% · Net margin 4.5% · Return on equity 9.0% · Return on assets (EBIT) 4.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 40 out of 100 (medium confidence).
What moves the price
The share trades about 23% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at 70%, 4532 screens cheaper than that median.
Fair Value models
Bear26.62 TWDFair Value 38.02 TWDBull49.43 TWD
Price 22.35 TWD · Upside +70.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (0.3087 TWD per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.39/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−5.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.0%
Start year 2020 (pandemic). Over 10 years: +2.6% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.7%
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What shareholders gained per year (last 5 years), in TWD ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+14.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.9%
Dividend (yield on the price)6.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7.9% vs −1.9%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.6% → 7%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+19.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about +18.0% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 813 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score55 · Above median
Fair Value upside+70.1% · Top 25%
Profitability
Return on equity (12 months)9.0% · Above median
Return on assets3.6% · Above median
Net margin (12 months)4.5% · Below median
Operating margin (12 months)6.0% · Below median
Growth and dividend
Revenue growth (quarter YoY)15.7% · Above median
Dividend yield (12 months)6.7% · Top 25%
Balance sheet
Debt / equity0.01× · Lowest 25%
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)12.0× · Cheapest 25%
P/B1.08× · Cheapest 25%
P/S (12 months)0.54× · Cheapest 25%
Price / free cash flow (fiscal year)30.9× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Rechi Precision Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/4532
Frequently asked questions
Is Rechi Precision Co Ltd (4532) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of 38.02 TWD versus a price of 22.35 TWD, about +70% upside (undervalued).
What is the fair value of 4532?
Our model-based fair value for Rechi Precision Co Ltd is 38.02 TWD (as of Nov 8, 2026), built from audited fundamentals. The current price: 22.35 TWD.
What is the quality score of 4532?
Rechi Precision Co Ltd has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Rechi Precision Co Ltd (4532)?
Our model-based price target is the fair value of 38.02 TWD (as of Nov 8, 2026) from 26 valuation models. Cautious scenario 26.62 TWD, optimistic scenario 49.43 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Rechi Precision Co Ltd stock forecast for 2026?
Our models put fair value at 38.02 TWD, about +70% upside versus a price of 22.35 TWD (undervalued). Cautious scenario 26.62 TWD, optimistic scenario 49.43 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Rechi Precision Co Ltd (4532)?
Rechi Precision Co Ltd reported trailing-twelve-month revenue of about 20.5B TWD (latest available figure, as of Nov 8, 2026).
Does Rechi Precision Co Ltd pay a dividend?
Rechi Precision Co Ltd currently shows a dividend yield of 6.71% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Rechi Precision Co Ltd (4532) and when is the ex-dividend date?
Rechi Precision Co Ltd pays a dividend of 1.50 TWD per share a year, a dividend yield of 6.7%. The last ex-dividend date was Apr 10, 2026. The payout ratio is 80.6% of earnings. Free cash flow covers the dividend 0.50 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Rechi Precision Co Ltd (4532)?
For today's price to be fair in a discounted-cash-flow model, Rechi Precision Co Ltd would have to grow free cash flow by +19.8 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.0 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of 4532 use?
Our models discount Rechi Precision Co Ltd at 10.3 %: a base by market capitalisation (small), damped by beta 0.26, country premium for Taiwan. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Rechi Precision Co Ltd that is +19.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has Rechi Precision Co Ltd (4532) delivered so far?
Over the past 5 years revenue at Rechi Precision Co Ltd grew +1.0 % a year. The price currently implies free-cash-flow growth of +19.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Rechi Precision Co Ltd (4532) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Rechi Precision Co Ltd (+19.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Rechi Precision Co Ltd (4532)?
The free-cash-flow yield on the price is 3.24 %: that much free cash flow Rechi Precision Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Rechi Precision Co Ltd (4532)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rechi Precision Co Ltd it is 38.02 TWD per share (as of Nov 8, 2026), against a price of 22.35 TWD. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Rechi Precision Co Ltd stock overvalued or undervalued in 2026?
As of Nov 8, 2026, 4532 trades below its calculated fair value: price 22.35 TWD, fair value 38.02 TWD, a gap of about +70% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 4532?
No. The price is what the market pays today (22.35 TWD); the fair value is what the company's own numbers justify (38.02 TWD). For Rechi Precision Co Ltd the two are 15.67 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Rechi Precision Co Ltd worth?
The market values Rechi Precision Co Ltd at about 11.2B TWD (market capitalisation, as of Nov 8, 2026). Per share that is 22.35 TWD; our models calculate a fair value of 38.02 TWD per share.
What do the bullish and bearish scenarios say about 4532?
Our models span a range for Rechi Precision Co Ltd: cautious scenario 26.62 TWD, base 38.02 TWD, optimistic 49.43 TWD per share (as of Nov 8, 2026, price 22.35 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 4532?
Rechi Precision Co Ltd trades at a price-to-earnings ratio of 12.0 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 38.02 TWD is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 13.7. Other multiples: P/B 1.1, P/S 0.5, EV/EBITDA 1.8.
How solid is the balance sheet of Rechi Precision Co Ltd (4532)?
Balance-sheet figures for Rechi Precision Co Ltd (as of Nov 8, 2026): return on equity 9.0%, debt of 0.01 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is 4532 from its 52-week high?
Rechi Precision Co Ltd trades at 22.35 TWD, about 23% below its 52-week high of 29.10 TWD and at the low of 22.35 TWD (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of 38.02 TWD is for.
Which stocks are comparable to Rechi Precision Co Ltd?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rechi Precision Co Ltd stock attractive at the current price?
The data as of Nov 8, 2026: price 22.35 TWD, calculated fair value 38.02 TWD (+70%), Quality Score 55/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 4532 calculated?
We run Rechi Precision Co Ltd through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 38.02 TWD builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Rechi Precision Co Ltd currently trades 41% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Rechi Precision Co Ltd (4532)?
The closing price on Nov 9, 2026 was 22.35 TWD. Our model-based fair value is 38.02 TWD, about +70% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rechi Precision Co Ltd right now?
The price is below even our cautious bear case (26.62 TWD). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (26.62 TWD to 49.43 TWD) leaves room in how you read the outcome.
Where does the earnings growth of Rechi Precision Co Ltd (4532) come from?
Earnings per share at Rechi Precision Co Ltd grew −2.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +0.9 %, EBIT margin −4.4 %, tax rate +0.1 %, residual (interest, one-offs) +1.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Rechi Precision Co Ltd
How large is the market capitalisation of Rechi Precision Co Ltd (4532)?
The market capitalisation of Rechi Precision Co Ltd is 11.2B TWD (≈ $341M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Rechi Precision Co Ltd (4532)?
The price-to-sales ratio of Rechi Precision Co Ltd is 0.54 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rechi Precision Co Ltd (4532)?
Earnings per share at Rechi Precision Co Ltd are 1.86 TWD (price ÷ EPS = P/E 12.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Rechi Precision Co Ltd (4532)?
The dividend yield of Rechi Precision Co Ltd is 6.7% (payout 80.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Rechi Precision Co Ltd (4532)?
The net margin of Rechi Precision Co Ltd is 4.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Rechi Precision Co Ltd (4532)?
The return on equity (ROE) of Rechi Precision Co Ltd is 9.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Rechi Precision Co Ltd (4532)?
On an EBIT basis the return on assets of Rechi Precision Co Ltd is 4.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Rechi Precision Co Ltd (4532)?
The operating margin of Rechi Precision Co Ltd is 6.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rechi Precision Co Ltd (4532)?
Revenue at Rechi Precision Co Ltd is growing +15.7% versus a year earlier (3y avg +3.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Rechi Precision Co Ltd (4532)?
Earnings per share at Rechi Precision Co Ltd are growing +15.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Rechi Precision Co Ltd (4532) carry?
The net debt of Rechi Precision Co Ltd is 2.7B TWD (fiscal year 2025, ≈ 7.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Nov 8, 2026