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Shihlin Electric & Engineering Corp (1503) Fair Value & Analysis

Industrials · TW · Market cap 115B TWD

SE Shihlin Electric & Engineering Corp 1503 · TW
Price193.50 TWD
Fair Value131.72 TWD
Upside-31.9%
Quality62/100
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Healthy Growth
Thin margins · 9.1% net margin
Low debt · generates free cash flow
1.87% dividend yield
Ranks above peers (10/15)
Moderate moat 51/100
Evidence: High Range 94.50 TWD – 164.65 TWD Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Share price −14.2% over the past month.

A solid business, but screening 32% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (164.65 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

344.50 TWD 44.46 TWD Fair Value 131.72 TWD Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range 44.46 TWD – 344.50 TWD · fair‑value band 94.50 TWD – 164.65 TWD · the 193.50 TWD price screens above the 131.72 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Shihlin Electric & Engineering Corp (1503) currently trades at 193.50 TWD, while our model-based Fair Value estimate is 131.72 TWD, implying the stock looks roughly 31.9% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Shihlin Electric & Engineering Corp generated revenue of 38.4B TWD at a net margin of 9.1%. Revenue grew 12.3% year over year. It earns a return on equity of 9.5%. The balance sheet holds a net cash position of 3.6B TWD. Fundamentals as of Jul 11, 2026

Our scenario range runs from 94.50 TWD (bear case) to 164.65 TWD (bull case); at 193.50 TWD, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -32%, 1503 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF 96.49 TWD 135.62 TWD 190.66 TWD 80
Residual Income 60.10 TWD 65.60 TWD 83.16 TWD 76
Rev-Margin DCF 85.80 TWD 127.88 TWD 175.07 TWD 74
All 26 models by family
DCF Models
FCF DCF 94.63 TWD 138.03 TWD 202.55 TWD 38
Owner Earnings 76.04 TWD 109.92 TWD 160.29 TWD 31
5Y Revenue Exit 85.80 TWD 127.34 TWD 179.35 TWD 39
5Y EBITDA Exit 94.32 TWD 142.97 TWD 198.49 TWD 41
5Y P/E Exit 96.27 TWD 146.55 TWD 198.10 TWD 38
10Y Revenue Exit 86.01 TWD 124.33 TWD 173.77 TWD 36
10Y EBITDA Exit 93.64 TWD 135.07 TWD 188.12 TWD 37
10Y P/E Exit 94.87 TWD 137.53 TWD 187.82 TWD 35
Earnings-Based
Graham-Dodd 42.65 TWD 119.96 TWD 157.85 TWD 54
Lynch FV 24.28 TWD 34.69 TWD 45.09 TWD 50
PEG = 1.0 24.28 TWD 34.69 TWD 45.09 TWD 46
EPV 72.11 TWD 82.49 TWD 91.58 TWD 59
Dividend Discount
Gordon GGM 41.32 TWD 85.91 TWD 136.29 TWD 70
DDM Multi-Stage 41.32 TWD 65.45 TWD 90.16 TWD 61
Multiples
P/E Multiple 98.79 TWD 131.72 TWD 164.65 TWD 63
P/S Multiple 79.97 TWD 106.63 TWD 133.29 TWD 58
P/B Multiple 79.97 TWD 106.63 TWD 133.29 TWD 55
EV/EBIT 115.04 TWD 150.12 TWD 185.19 TWD 53
EV/EBITDA 105.21 TWD 137.00 TWD 168.79 TWD 54
EV/Revenue 84.92 TWD 117.11 TWD 149.29 TWD 43
Asset-Based
NCAV (Graham) 34.83 TWD 46.67 TWD 69.66 TWD 50
Growth DCF
Growth DCF 96.49 TWD 135.62 TWD 190.66 TWD 80
Rev-Margin DCF 85.80 TWD 127.88 TWD 175.07 TWD 74
Economic Profit
Residual Income 60.10 TWD 65.60 TWD 83.16 TWD 76
ROIC Compounder 72.68 TWD 88.33 TWD 107.70 TWD 72
Growth Earnings
Growth-Adj P/E 78.97 TWD 112.81 TWD 146.65 TWD 68

Widest divergence: DCF Models (135.07 TWD) versus Earnings-Based (34.69 TWD). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 38.4B TWD
Revenue growth (YoY) +12.3%
Net margin 9.1%
Return on equity 9.5%
Free cash flow 4.0B TWD FY2025
P/E ratio 35.3
More key figures
Operating margin 16.1%
EPS (TTM) 6.27 TWD
Dividend yield 1.9%
EPS growth (YoY) +18.8%
Net cash 3.6B TWD FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 61 · Market factors (momentum, volatility) 44

Profitability 38
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 61
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Shihlin Electric & Engineering Corp. manufactures and sells heavy electrical equipment and machinery and automotive electrical equipment, devices, and related parts in Taiwan, Mainland China, Vietnam, and internationally.

Full company description

Shihlin Electric & Engineering Corp. manufactures and sells heavy electrical equipment and machinery and automotive electrical equipment, devices, and related parts in Taiwan, Mainland China, Vietnam, and internationally. The company offers automobile parts, such as alternators, starters, wiper systems, and fan motors; traction motor and motor controller EV powertrains; EV chargers; motorcycle parts, including ISG, AC generator, fuel pumps, and ignition coils; and DC, gear, transaxle motor. It also provides breaker switchgear and systems consisting of miniature circuit breakers, molded case circuit breakers, air circuit breakers, magnetic contactors/switches, manual motor starters, surge protective devices, renewable energy solutions, digital power meter, and automatic transfer switches; and heavy electric systems, such as power and oil immersed transformers, cast resin transformers, pad and pole mounted transformers, PT/CT products, high voltage switches, and capacitors. In addition, the company offers factory automation products that include AC drives, HMI products, AC servo motors and drives, and temperature controllers; and automatic handling systems, as well as digital products. Further, it is involved in the operating, sale, and maintenance of vending machines; manufacture and sale of aluminum alloy die-casting, lathe, cutting, and molding products; trading of mechanical appliances and vehicle components; competitive and recreational sports business; investment and installation businesses; management consulting services; power transmission and generation manufacturing, distribution, and sale; manufacture of machinery and renewable energy equipment; marketing promotions services; manufacturing and sale of high and low pressure switch; and sale and lease of commercial buildings. The company was incorporated in 1955 and is based in Taipei, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shihlin Electric & Engineering Corp reported revenue of 37.2B TWD in FY2025 versus 27.7B TWD in FY2021, a compound +7.6%/yr. Reported net income was 3.3B TWD in FY2025, compounding +16.0%/yr from FY2021.

Growth Quality 75/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
37.2B TWD
Latest YoY
+6.0%
Avg. growth/yr (3Y)
+6.5%
Avg. growth/yr (5Y)
+7.7%
Avg. growth/yr (23Y)
+5.5%
Revenue +7.6%/yr
FY21 27.7B TWD
FY22 30.8B TWD
FY23 31.8B TWD
FY24 35.1B TWD
FY25 37.2B TWD
Net income +16.0%/yr
FY21 1.8B TWD
FY22 2.0B TWD
FY23 2.3B TWD
FY24 3.0B TWD
FY25 3.3B TWD

1503 screens 32% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Shihlin Electric & Engineering Corp Fair Value". https://www.fairvalue-calculator.com/stock/1503

Peer Group

Electrical Equipment & Parts · 528 stocks

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.

Quality Score 62 · Top 25%
Fair Value upside −32% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 5% · Above median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 16% · Top 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 1.9% · Above median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 35.3× · Pricier than median
P/B 3.18× · Pricier than median
P/S (TTM) 3.00× · Pricier than median
P/FCF 0.9× · Cheaper than 75% of peers
EV/EBITDA 20.8× · Pricier than median
PEG 9.47× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 62 · sector 57
PAST 38 · sector 26
HEALTH 100 · sector 97
DIVIDEND 37 · sector 18

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

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Shihlin Electric & Engineering Corp (1503) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of 131.72 TWD versus a price of 193.50 TWD, about −32% (overvalued).
What is the fair value of 1503?
Our model-based fair value for Shihlin Electric & Engineering Corp is 131.72 TWD (as of Jul 11, 2026), built from audited fundamentals. The current price is 193.50 TWD.
What is the quality score of 1503?
Shihlin Electric & Engineering Corp has a Quality Score of 62/100. 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 revenue of Shihlin Electric & Engineering Corp (1503)?
Shihlin Electric & Engineering Corp reported trailing-twelve-month revenue of about 38.4B TWD (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 1503?
The net profit margin of Shihlin Electric & Engineering Corp is about 9.1%, meaning it keeps roughly 9.1% of revenue as net income. Based on the latest reported figures.
Does Shihlin Electric & Engineering Corp pay a dividend?
Shihlin Electric & Engineering Corp currently shows a dividend yield of about 1.87% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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