Song Chuan Precision Co., Ltd. (7788) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Song Chuan Precision Co., Ltd. stock TWD 61.89, price TWD 194, that is 68.0% below the price, quality 41 out of 100. Rating: strongly overvalued. 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 2, 2026.
How to read this chart
24‑month range 99.13 TWD – 365.50 TWD · fair‑value band 46.77 TWD – 80.45 TWD · the 193.50 TWD price screens above the 61.89 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 2, 2026.
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Song Chuan Precision Co., Ltd. manufactures and sells electromechanical power relays in Taiwan and internationally.
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It primarily offers relays, PCB and plug-in automotive relays, PCB miniature power relays, industrial and general-purpose relays, and safety relays for home appliance, automotive, IT product, and other applications. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan.
Stock analysis
Song Chuan Precision Co., Ltd. (7788) currently trades at 193.50 TWD, while our model-based Fair Value estimate is 61.89 TWD, 68% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of 86.55 TWD per share, and 1 of the 26 models we run sit above the 193.50 TWD price.
Bear case: the Asset-Based group reads lowest at 19.05 TWD, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: 46.77 TWD (bear) to 80.45 TWD (bull), the price of 193.50 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 41/100 (below-average quality), in the Industrials sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Song Chuan Precision Co., Ltd. reported revenue of 6.4B TWD in FY2025 versus 5.2B TWD in FY2021, a compound +5.4%/yr. Reported net income was 269M TWD in FY2025, compounding +21.7%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap 22.0B TWD (≈ $671M) Small · P/E ratio 22.8 · P/S ratio 3.00 · EPS (TTM) 8.50 TWD · Dividend yield 1.0% · Net margin 9.1% · Return on equity 11.4% · Return on assets (EBIT) 4.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (low confidence).
What moves the price
The share trades about 47% below its 52-week high and 95% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −36% fair-value upside, at −68%, 7788 screens richer than that median.
Fair Value models
Bear46.77 TWDFair Value 61.89 TWDBull80.45 TWD
Price 193.50 TWD · Downside -68.0%
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 (5.56 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.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+7.9%
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.
+1.6%
’21
’22
’23
’24
’25
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. 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.
+9.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.1%
Dividend (yield on the price)1.0%
Profit margin 2021 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%
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).
+61.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
Calculated on free cash flow for fiscal year 2025. Over the last twelve months it was negative, so the figure above is uncertain.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about +58.5% a year for the price.
Compare Song Chuan Precision Co., Ltd. with another stock
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.Electrical Equipment & Parts · 564 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score41 · Bottom 25%
Fair Value upside−68.0% · Bottom 25%
Profitability
Return on equity (12 months)11.4% · Above median
Return on assets2.6% · Below median
Net margin (12 months)9.1% · Above median
Operating margin (12 months)14.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)40.3% · Top 25%
Dividend yield (12 months)1.0% · Below median
Balance sheet
Debt / equity0.18× · Above median
Valuation Multiplesvs Electrical Equipment & Parts median · lower = cheaper
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Is Song Chuan Precision Co., Ltd. (7788) overvalued or undervalued?
As of Nov 2, 2026, our model estimates a fair value of 61.89 TWD versus a price of 193.50 TWD, about 68% lower (overvalued).
What is the fair value of 7788?
Our model-based fair value for Song Chuan Precision Co., Ltd. is 61.89 TWD (as of Nov 2, 2026), built from audited fundamentals. The current price: 193.50 TWD.
What is the quality score of 7788?
Song Chuan Precision Co., Ltd. has a Quality Score of 41/100. 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 Song Chuan Precision Co., Ltd. (7788)?
Our model-based price target is the fair value of 61.89 TWD (as of Nov 2, 2026) from 26 valuation models. Cautious scenario 46.77 TWD, optimistic scenario 80.45 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Song Chuan Precision Co., Ltd. stock forecast for 2026?
Our models put fair value at 61.89 TWD, about 68% lower versus a price of 193.50 TWD (overvalued). Cautious scenario 46.77 TWD, optimistic scenario 80.45 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Song Chuan Precision Co., Ltd. (7788)?
Song Chuan Precision Co., Ltd. reported trailing-twelve-month revenue of about 7.3B TWD (latest available figure, as of Nov 2, 2026).
Does Song Chuan Precision Co., Ltd. pay a dividend?
Song Chuan Precision Co., Ltd. currently shows a dividend yield of 1.03% relative to its recent price (as of Nov 2, 2026).
How much is the dividend of Song Chuan Precision Co., Ltd. (7788) and when is the ex-dividend date?
Song Chuan Precision Co., Ltd. pays a dividend of 2.00 TWD per share a year, a dividend yield of 1.0%. The last ex-dividend date was Jul 24, 2026. The payout ratio is 23.5% of earnings. Free cash flow covers the dividend 0.55 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 Song Chuan Precision Co., Ltd. (7788)?
For today's price to be fair in a discounted-cash-flow model, Song Chuan Precision Co., Ltd. would have to grow free cash flow by +61.0 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 4 years revenue grew +5.4 % per year. Calculated on free cash flow for fiscal year 2025. Over the last twelve months it was negative, so the figure above is uncertain. As of Nov 2, 2026.
What discount rate (WACC) does the fair value of 7788 use?
Our models discount Song Chuan Precision Co., Ltd. at 11.8 %: a base by market capitalisation (small), 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 Song Chuan Precision Co., Ltd. that is +61.0 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Song Chuan Precision Co., Ltd. (7788) delivered so far?
Over the past 4 years revenue at Song Chuan Precision Co., Ltd. grew +5.4 % a year. The price currently implies free-cash-flow growth of +61.0 % 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 Song Chuan Precision Co., Ltd. (7788) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Song Chuan Precision Co., Ltd. (+61.0 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Song Chuan Precision Co., Ltd. (7788)?
The free-cash-flow yield on the price is 0.57 % in the last fiscal year (free cash flow was negative over the last twelve months): that much free cash flow Song Chuan Precision Co., Ltd. produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Song Chuan Precision Co., Ltd. (7788)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Song Chuan Precision Co., Ltd. it is 61.89 TWD per share (as of Nov 2, 2026), against a price of 193.50 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 Song Chuan Precision Co., Ltd. stock overvalued or undervalued in 2026?
As of Nov 2, 2026, 7788 trades above its calculated fair value: price 193.50 TWD, fair value 61.89 TWD, a gap of about −68% (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 7788?
No. The price is what the market pays today (193.50 TWD); the fair value is what the company's own numbers justify (61.89 TWD). For Song Chuan Precision Co., Ltd. the two are 131.61 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Song Chuan Precision Co., Ltd. worth?
The market values Song Chuan Precision Co., Ltd. at about 22.0B TWD (market capitalisation, as of Nov 2, 2026). Per share that is 193.50 TWD; our models calculate a fair value of 61.89 TWD per share.
What do the bullish and bearish scenarios say about 7788?
Our models span a range for Song Chuan Precision Co., Ltd.: cautious scenario 46.77 TWD, base 61.89 TWD, optimistic 80.45 TWD per share (as of Nov 2, 2026, price 193.50 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 7788?
Song Chuan Precision Co., Ltd. trades at a price-to-earnings ratio of 22.8 (as of Nov 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 61.89 TWD is built from several models across several years. Other multiples: P/B 3.7, P/S 3.0, EV/EBITDA 21.0.
How solid is the balance sheet of Song Chuan Precision Co., Ltd. (7788)?
Balance-sheet figures for Song Chuan Precision Co., Ltd. (as of Nov 2, 2026): return on equity 11.4%, debt of 0.18 per unit of equity. They feed the Quality Score of 41/100, which measures business quality independently of the share price.
How far is 7788 from its 52-week high?
Song Chuan Precision Co., Ltd. trades at 193.50 TWD, about 47% below its 52-week high of 365.50 TWD and 95% above the low of 99.13 TWD (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of 61.89 TWD is for.
Which stocks are comparable to Song Chuan Precision Co., Ltd.?
From the same area (Industrials) we also value Contemporary Amperex Technology Co, ABB Ltd, Vertiv Holdings, Delta Electronics (Thailand) Public Company, 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 Song Chuan Precision Co., Ltd. stock attractive at the current price?
The data as of Nov 2, 2026: price 193.50 TWD, calculated fair value 61.89 TWD (−68%), Quality Score 41/100, 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 7788 calculated?
We run Song Chuan 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 61.89 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 13.0% above its aggregate fair value. Song Chuan Precision Co., 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 Song Chuan Precision Co., Ltd. (7788)?
The closing price on Nov 6, 2026 was 193.50 TWD. Our model-based fair value is 61.89 TWD, about 68% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Song Chuan Precision Co., Ltd. right now?
The price sits above even our optimistic bull case (80.45 TWD). The favourable scenario is already priced in. Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
Key figures of Song Chuan Precision Co., Ltd.
How large is the market capitalisation of Song Chuan Precision Co., Ltd. (7788)?
The market capitalisation of Song Chuan Precision Co., Ltd. is 22.0B TWD (≈ $671M). 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 Song Chuan Precision Co., Ltd. (7788)?
The price-to-sales ratio of Song Chuan Precision Co., Ltd. is 3.00 (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 Song Chuan Precision Co., Ltd. (7788)?
Earnings per share at Song Chuan Precision Co., Ltd. are 8.50 TWD (price ÷ EPS = P/E 22.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Song Chuan Precision Co., Ltd. (7788)?
The dividend yield of Song Chuan Precision Co., Ltd. is 1.0% (payout 23.5%). 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 Song Chuan Precision Co., Ltd. (7788)?
The net margin of Song Chuan Precision Co., Ltd. is 9.1% (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 Song Chuan Precision Co., Ltd. (7788)?
The return on equity (ROE) of Song Chuan Precision Co., Ltd. is 11.4% (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 Song Chuan Precision Co., Ltd. (7788)?
On an EBIT basis the return on assets of Song Chuan Precision Co., Ltd. is 4.8% (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 Song Chuan Precision Co., Ltd. (7788)?
The operating margin of Song Chuan Precision Co., Ltd. is 14.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Song Chuan Precision Co., Ltd. (7788)?
Revenue at Song Chuan Precision Co., Ltd. is growing +40.3% versus a year earlier (3y avg +1.6%). 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 Song Chuan Precision Co., Ltd. (7788)?
Earnings per share at Song Chuan Precision Co., Ltd. are growing +11.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Song Chuan Precision Co., Ltd. (7788) carry?
The net debt of Song Chuan Precision Co., Ltd. is 274M TWD (fiscal year 2025, ≈ 3.1 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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Broad data
Nov 2, 2026