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AUO Corporation (2409) Fair Value & Analysis

Technology · TW · Market cap 195B TWD

AC AUO Corporation 2409 · TW
Price24.55 TWD
Fair Value15.28 TWD
Upside-37.8%
Quality51/100
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Weak Growth
Thin margins · 0.9% net margin
Moderate debt · negative free cash flow
Trails peers (5/14)
Narrow moat 23/100
Evidence: Medium Range 13.60 TWD – 17.87 TWD Share as image

Fair value as of: Jul 19, 2026

From 11 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from 15.53 TWD to 15.28 TWD (−1.6%) since Jul 7, 2026. Share price −16.9% over the past month.

A solid business, but screening 38% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (17.87 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

32.91 TWD 10.60 TWD Fair Value 15.28 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range 10.60 TWD – 32.91 TWD · fair‑value band 13.60 TWD – 17.87 TWD · the 24.55 TWD price screens above the 15.28 TWD fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

AUO Corporation (2409) currently trades at 24.55 TWD, while our model-based Fair Value estimate is 15.28 TWD, implying the stock looks roughly 37.8% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Technology 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: medium).

Over the trailing twelve months, AUO Corporation generated revenue of 278B TWD at a net margin of 0.9%. Revenue declined 4.3% year over year. It earns a return on equity of 1.7%. Net debt stands at 61.8B TWD. Fundamentals as of Jul 19, 2026

Our scenario range runs from 13.60 TWD (bear case) to 17.87 TWD (bull case); at 24.55 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 17% below its 52-week high and 127% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -38%, 2409 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
Residual Income 15.24 TWD 15.26 TWD 14.20 TWD 76
Gordon GGM 2.80 TWD 3.28 TWD 3.84 TWD 70
Growth-Adj P/E 9.62 TWD 13.75 TWD 17.87 TWD 68
All 11 models by family
DCF Models
Owner Earnings 21.74 TWD 30.47 TWD 47.80 TWD 31
Earnings-Based
Graham-Dodd 6.17 TWD 9.50 TWD 11.36 TWD 54
Dividend Discount
Gordon GGM 2.80 TWD 3.28 TWD 3.84 TWD 70
DDM Multi-Stage 2.80 TWD 3.68 TWD 4.81 TWD 61
Multiples
P/E Multiple 13.60 TWD 18.14 TWD 22.67 TWD 63
P/S Multiple 11.56 TWD 15.41 TWD 19.27 TWD 58
P/B Multiple 11.56 TWD 15.41 TWD 19.27 TWD 55
EV/EBITDA 34.46 TWD 46.86 TWD 59.26 TWD 54
Asset-Based
NCAV (Graham) 10.07 TWD 13.49 TWD 20.14 TWD 50
Economic Profit
Residual Income 15.24 TWD 15.26 TWD 14.20 TWD 76
Growth Earnings
Growth-Adj P/E 9.62 TWD 13.75 TWD 17.87 TWD 68

Widest divergence: DCF Models (30.47 TWD) versus Dividend Discount (3.28 TWD). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 278B TWD
Revenue growth (YoY) -4.3%
Net margin 0.9%
Return on equity 1.7%
Free cash flow −7.0B TWD FY2025
P/E ratio 80.6
More key figures
Operating margin -0.9%
EPS (TTM) 0.3200 TWD
EPS growth (YoY) +80.4%
Net debt 61.8B TWD FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 50 · Market factors (momentum, volatility) 74

Profitability 29
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 99
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 85
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

AUO Corporation engages in the research, development, production, and sale of thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. The company operates through two segments, Display and Energy.

Full company description

AUO Corporation engages in the research, development, production, and sale of thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. The company operates through two segments, Display and Energy. It designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. The company also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, it engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, the company designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. it operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AUO Corporation reported revenue of 281B TWD in FY2025 versus 371B TWD in FY2021, a compound −6.7%/yr. Reported net income was 6.8B TWD in FY2025, compounding −42.2%/yr from FY2021.

Growth Quality 27/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
281B TWD
Latest YoY
+0.4%
Avg. growth/yr (3Y)
+4.5%
Avg. growth/yr (5Y)
+0.8%
Avg. growth/yr (24Y)
+8.8%
Revenue −6.7%/yr
FY21 371B TWD
FY22 247B TWD
FY23 248B TWD
FY24 280B TWD
FY25 281B TWD
Net income −42.2%/yr
FY21 61.3B TWD
FY22 −21.0B TWD
FY23 −18.2B TWD
FY24 −3.1B TWD
FY25 6.8B TWD

2409 screens 38% overvalued. Compare with Delta Electronics, Inc →

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Cite: Fair Value Calculator (2026). "AUO Corporation Fair Value". https://www.fairvalue-calculator.com/stock/2409

Peer Group

Electronic Components · 626 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 51 · Below median
Fair Value upside −38% · Above median
Return on equity (TTM) 2% · Below median
Return on assets -0% · Bottom 25%
Net margin (TTM) 1% · Below median
Operating margin (TTM) -1% · Bottom 25%
Revenue growth -4% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.50× · Higher than 75% of peers

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 80.6× · Pricier than 75% of peers
P/B 1.28× · Cheaper than median
P/S (TTM) 0.70× · Cheaper than median
EV/EBITDA 8.9× · Cheaper than 75% of peers
PEG 0.13× · Cheaper 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 0 · sector 32
PAST 7 · sector 24
HEALTH 75 · sector 95
DIVIDEND 0 · sector 25

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

Insider activity: 40/100

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is AUO Corporation (2409) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 15.28 TWD versus a price of 24.55 TWD, about −38% (overvalued).
What is the fair value of 2409?
Our model-based fair value for AUO Corporation is 15.28 TWD (as of Jul 19, 2026), built from audited fundamentals. The current price is 24.55 TWD.
What is the quality score of 2409?
AUO Corporation has a Quality Score of 51/100. 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 AUO Corporation (2409)?
AUO Corporation reported trailing-twelve-month revenue of about 278B TWD (latest available figure, as of Jul 19, 2026).
What is the net profit margin of 2409?
The net profit margin of AUO Corporation is about 0.9%, meaning it keeps roughly 0.9% of revenue as net income. Based on the latest reported figures.

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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