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Data-driven stock valuation

Cheng Fwa Industrial Ltd (5426) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of Cheng Fwa Industrial Ltd stock TWD 9.17, price TWD 25.55, that is 64.1% below the price, quality 58 out of 100. Rating: strongly overvalued. Calculated from audited financials with 15 of our 26 valuation models and 37 quality factors, updated daily.

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Industrials TW · ISIN TW0005426001

CF Cheng Fwa Industrial Ltd logo Thin data Nov 7, 2026

Cheng Fwa Industrial Ltd

5426 · TWO
Solid, but very expensive

Our calculation puts a fair price 64% below what the stock costs today.

Revenue last quarter +21% vs. a year ago.
Quality 58/100
Thin margins · 4.8% net margin (TTM)
Mixed vs. peers (6/12)
Fair value 9.17 TWD · Strongly overvalued
Weak Growth (revenue 3y −5.3 %/yr in TWD)
Negative free cash flow
Narrow moat 30/100 · thin data
Thin data
⟳ Cyclical
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What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

42.75 TWD 9.87 TWD Fair Value 9.17 TWD Jun 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.

How to read this chart

60‑month range 9.87 TWD – 42.75 TWD · fair‑value band 6.35 TWD – 10.63 TWD · the 25.55 TWD price screens above the 9.17 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.

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Company profile

Cheng Fwa Industrial Co., Ltd. manufactures, processes, and supplies precision-stamping metal parts for THE computer, telecommunication, networking, and electronic industries in Taiwan and internationally.

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It offers components for printer parts, electronic components, PDA and PDA LCD frame, spring, notebook parts, panel, air compressor, web camera shield, and tuner chassis; tel-communication box, IPC chassis, storage server chassis.

PC case, satellite disc antennas, web cam, set top box, and kiosk products for industrial PC and servers of the electronic industry; and custom plastic injection molding for medical devices and components, as well as products for lighting, automotive, and instrumentation industries; and server slide rail.

The company also provides design and engineering; rapid prototyping/soft tool production; tooling development/maintenance; precision metal stamping/fabrication; finish processing/assembling; and plastic injection services.

In addition, it is involved in the manufacture and sales of industrial computer casings and their accessories, and plastic products. Cheng Fwa Industrial Co., Ltd. was founded in 1961 and is headquartered in New Taipei City, Taiwan.

Stock analysis

Cheng Fwa Industrial Ltd (5426) currently trades at 25.55 TWD, while our model-based Fair Value estimate is 9.17 TWD, 64% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Economic Profit group reads highest at a median of 9.94 TWD per share, and 0 of the 15 models we run sit above the 25.55 TWD price.

Bear case: the Asset-Based group reads lowest at 5.51 TWD, and 15 of the 15 models stay below the price. Data coverage for this calculation is low.

Scenario range: 6.35 TWD (bear) to 10.63 TWD (bull), the price of 25.55 TWD sits above 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 58/100 (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.

Cheng Fwa Industrial Ltd reported revenue of 1.8B TWD in FY2025 versus 1.7B TWD in FY2021, a compound +1.4%/yr. Reported net income was 74.3M TWD in FY2025.

Key figures

Market cap 3.7B TWD (≈ $112M) Micro · P/E ratio 39.9 · P/S ratio 1.96 · EPS (TTM) 0.6400 TWD · Dividend yield 1.4% · Net margin 4.8% · Return on equity 4.1% · Return on assets (EBIT) 0.6% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 30 out of 100 (low confidence).

What moves the price

The share trades about 36% below its 52-week high and 44% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Industrials peers we cover trades at −38% fair-value upside, at −64%, 5426 screens richer than that median.

Fair Value models

Bear 6.35 TWD Fair Value 9.17 TWD Bull 10.63 TWD
Price 25.55 TWD · Downside -64.1%
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 (0.5488 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.
Best data coverage
Residual Income 10.28 TWD 10.30 TWD 10.63 TWD 76
EPV 9.13 TWD 9.58 TWD 9.95 TWD 70
ROIC Compounder 9.13 TWD 9.58 TWD 9.95 TWD 70
All 15 models by family
Earnings-Based
Graham-Dodd 3.51 TWD 9.17 TWD 11.96 TWD 65
PEG = 1.0 1.75 TWD 2.49 TWD 3.24 TWD 57
EPV 9.13 TWD 9.58 TWD 9.95 TWD 70
Dividend Discount
Gordon GGM 3.66 TWD 6.20 TWD 8.44 TWD 68
DDM Multi-Stage 3.66 TWD 5.22 TWD 6.61 TWD 67
Multiples
P/E Multiple 8.13 TWD 10.85 TWD 13.56 TWD 63
P/S Multiple 6.59 TWD 8.78 TWD 10.98 TWD 58
P/B Multiple 11.14 TWD 14.85 TWD 18.57 TWD 55
EV/EBIT 6.33 TWD 8.53 TWD 10.74 TWD 63
EV/EBITDA 10.24 TWD 13.75 TWD 17.25 TWD 64
EV/Revenue 4.44 TWD 6.46 TWD 8.48 TWD 51
Asset-Based
NCAV (Graham) 3.63 TWD 5.51 TWD 6.88 TWD 52
Economic Profit
Residual Income 10.28 TWD 10.30 TWD 10.63 TWD 76
ROIC Compounder 9.13 TWD 9.58 TWD 9.95 TWD 70
Growth Earnings
Growth-Adj P/E 6.35 TWD 9.07 TWD 11.80 TWD 67

Open the full fair value analysis →

Quality Score breakdown

Overall quality 58/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 27
How much profit the company makes from its sales and capital
Quality Growth 47
Are margins and returns getting better?
Cashflow 37
Do the profits arrive as real cash?
Financial strength 96
Debt, balance sheet and risk of trouble
Investment 72
Does it invest with discipline instead of growing at any price?
Low Volatility 54
How calm the share price moves, does not count
Price momentum 65
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 43
Distance to the 52-week high, does not count
New shares 82
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

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. 32/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+17.0%
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.
−5.3%
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.
+2.8%
Start year 2020 (pandemic)
Revenue growth 8 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.
+0.8%
What shareholders gained per year (last 3 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 3 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. Basis: EBIT basis. 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.
−10.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year−11.6%
Dividend (yield on the price)1.4%
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.−1% → 4%
⚠ Revenue per share shrinking 1.6%/yr over ~6Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.

5426 screens overvalued: fair value 64% below the price. Compare with ATI Inc →

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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.Metal Fabrication · 260 stocks

Beats the industry median on 6/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 58 · Above median
Fair Value upside −64.1% · Bottom 25%
Profitability
Return on equity (12 months) 4.1% · Below median
Return on assets 2.3% · Below median
Net margin (12 months) 4.8% · Above median
Operating margin (12 months) 6.6% · Above median
Growth and dividend
Revenue growth (quarter YoY) 21.2% · Above median
Dividend yield (12 months) 1.4% · Above median

Valuation Multiplesvs Metal Fabrication median · lower = cheaper

P/E (12 months) 39.9× · Pricier than median
P/B 1.63× · Cheaper than median
P/S (12 months) 1.96× · Pricier than median
EV/EBITDA 18.5× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 0
FUTURE (revenue growth)100 · sector 68
PAST (return on equity)16 · sector 24
HEALTH (low debt)0 · sector 95
DIVIDEND (yield)29 · sector 25

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Cheng Fwa Industrial Ltd: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Cheng Fwa Industrial Ltd Fair Value". https://www.fairvalue-calculator.com/stock/5426

Frequently asked questions

Is Cheng Fwa Industrial Ltd (5426) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of 9.17 TWD versus a price of 25.55 TWD, about 64% lower (overvalued).
What is the fair value of 5426?
Our model-based fair value for Cheng Fwa Industrial Ltd is 9.17 TWD (as of Nov 7, 2026), built from audited fundamentals. The current price: 25.55 TWD.
What is the quality score of 5426?
Cheng Fwa Industrial Ltd has a Quality Score of 58/100. 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 Cheng Fwa Industrial Ltd (5426)?
Our model-based price target is the fair value of 9.17 TWD (as of Nov 7, 2026) from 15 valuation models. Cautious scenario 6.35 TWD, optimistic scenario 10.63 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Cheng Fwa Industrial Ltd stock forecast for 2026?
Our models put fair value at 9.17 TWD, about 64% lower versus a price of 25.55 TWD (overvalued). Cautious scenario 6.35 TWD, optimistic scenario 10.63 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Cheng Fwa Industrial Ltd (5426)?
Cheng Fwa Industrial Ltd reported trailing-twelve-month revenue of about 1.9B TWD (latest available figure, as of Nov 7, 2026).
Does Cheng Fwa Industrial Ltd pay a dividend?
Cheng Fwa Industrial Ltd currently shows a dividend yield of 1.44% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Cheng Fwa Industrial Ltd (5426)?
Cheng Fwa Industrial Ltd has a dividend yield of 1.4%.
What is the intrinsic value of Cheng Fwa Industrial Ltd (5426)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cheng Fwa Industrial Ltd it is 9.17 TWD per share (as of Nov 7, 2026), against a price of 25.55 TWD. It is the blended result of 15 valuation models in 6 families (Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is Cheng Fwa Industrial Ltd stock overvalued or undervalued in 2026?
As of Nov 7, 2026, 5426 trades above its calculated fair value: price 25.55 TWD, fair value 9.17 TWD, a gap of about −64% (overvalued). 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 5426?
No. The price is what the market pays today (25.55 TWD); the fair value is what the company's own numbers justify (9.17 TWD). For Cheng Fwa Industrial Ltd the two are 16.38 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Cheng Fwa Industrial Ltd worth?
The market values Cheng Fwa Industrial Ltd at about 3.7B TWD (market capitalisation, as of Nov 7, 2026). Per share that is 25.55 TWD; our models calculate a fair value of 9.17 TWD per share.
What do the bullish and bearish scenarios say about 5426?
Our models span a range for Cheng Fwa Industrial Ltd: cautious scenario 6.35 TWD, base 9.17 TWD, optimistic 10.63 TWD per share (as of Nov 7, 2026, price 25.55 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 5426?
Cheng Fwa Industrial Ltd trades at a price-to-earnings ratio of 39.9 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 9.17 TWD is built from several models across several years. Median P/E at fiscal year-end, 6 fiscal years (2017 to 2025), reported earnings: 34.8. Other multiples: P/B 1.6, P/S 2.0, EV/EBITDA 18.5.
How solid is the balance sheet of Cheng Fwa Industrial Ltd (5426)?
Balance-sheet figures for Cheng Fwa Industrial Ltd (as of Nov 7, 2026): return on equity 4.1%. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is 5426 from its 52-week high?
Cheng Fwa Industrial Ltd trades at 25.55 TWD, about 36% below its 52-week high of 39.65 TWD and 44% above the low of 17.70 TWD (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of 9.17 TWD is for.
Which stocks are comparable to Cheng Fwa Industrial Ltd?
From the same area (Industrials) we also value ATI Inc, Carpenter Technology Corporation, Mueller Industries, Inc, Bharat Forge Limited, 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 Cheng Fwa Industrial Ltd stock attractive at the current price?
The data as of Nov 7, 2026: price 25.55 TWD, calculated fair value 9.17 TWD (−64%), Quality Score 58/100, from 15 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 5426 calculated?
We run Cheng Fwa Industrial Ltd through 15 models from 6 families: Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 9.17 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. Cheng Fwa Industrial Ltd itself currently trades above fair value. 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 Cheng Fwa Industrial Ltd (5426)?
The closing price on Nov 6, 2026 was 25.55 TWD. Our model-based fair value is 9.17 TWD, about 64% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cheng Fwa Industrial Ltd right now?
The price sits above even our optimistic bull case (10.63 TWD). The favourable scenario is already priced in. 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 but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.

Key figures of Cheng Fwa Industrial Ltd

How large is the market capitalisation of Cheng Fwa Industrial Ltd (5426)?
The market capitalisation of Cheng Fwa Industrial Ltd is 3.7B TWD (≈ $112M). 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 Cheng Fwa Industrial Ltd (5426)?
The price-to-sales ratio of Cheng Fwa Industrial Ltd is 1.96 (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 Cheng Fwa Industrial Ltd (5426)?
Earnings per share at Cheng Fwa Industrial Ltd are 0.6400 TWD (price ÷ EPS = P/E 39.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cheng Fwa Industrial Ltd (5426)?
The dividend yield of Cheng Fwa Industrial Ltd is 1.4% (payout 57.6%). 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 Cheng Fwa Industrial Ltd (5426)?
The net margin of Cheng Fwa Industrial Ltd is 4.8% (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 Cheng Fwa Industrial Ltd (5426)?
The return on equity (ROE) of Cheng Fwa Industrial Ltd is 4.1% (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 Cheng Fwa Industrial Ltd (5426)?
On an EBIT basis the return on assets of Cheng Fwa Industrial Ltd is 0.6% (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 Cheng Fwa Industrial Ltd (5426)?
The operating margin of Cheng Fwa Industrial Ltd is 6.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cheng Fwa Industrial Ltd (5426)?
Revenue at Cheng Fwa Industrial Ltd is growing +21.2% versus a year earlier (3y avg −5.3%). 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 Cheng Fwa Industrial Ltd (5426)?
Earnings per share at Cheng Fwa Industrial Ltd are growing −32.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Cheng Fwa Industrial Ltd (5426) generate?
The free cash flow of Cheng Fwa Industrial Ltd is −60.0M TWD (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Cheng Fwa Industrial Ltd (5426) carry?
The net debt of Cheng Fwa Industrial Ltd is 39.6M TWD (fiscal year 2021). 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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