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Kuo Yang Construction Co (2505) Fair Value & Analysis

Real Estate · TW · Market cap 6.7B TWD

KY Kuo Yang Construction Co 2505 · TW
Price18.10 TWD
Fair Value29.68 TWD
Upside+64.0%
Quality65/100
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Weak Growth
Solidly profitable · 18.4% net margin
Low debt · generates free cash flow
Ranks above peers (9/13)
Moderate moat 46/100
Evidence: High Range 24.59 TWD – 40.74 TWD Share as image

Fair value as of: Jul 23, 2026

From 14 valuation models · updated 18 days ago

Share price +0.8% over the past month.

A solid business, screening 64% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (24.59 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

36.79 TWD 16.70 TWD Fair Value 29.68 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 16.70 TWD – 36.79 TWD · fair‑value band 24.59 TWD – 40.74 TWD · the 18.10 TWD price screens below the 29.68 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Kuo Yang Construction Co (2505) currently trades at 18.10 TWD, while our model-based Fair Value estimate is 29.68 TWD, implying the stock looks roughly 64.0% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Kuo Yang Construction Co generated revenue of 4.1B TWD at a net margin of 18.4%. Revenue declined 38.0% year over year. It earns a return on equity of 7.1%. Net debt stands at 5.5B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 24.59 TWD (bear case) to 40.74 TWD (bull case); at 18.10 TWD, the current price sits below 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 14% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 32% fair-value upside, at 64%, 2505 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 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. Evidence
Highest evidence
Growth DCF 65.37 TWD 120.19 TWD 208.51 TWD 80
Residual Income 23.69 TWD 25.37 TWD 28.52 TWD 76
Rev-Margin DCF 40.21 TWD 63.16 TWD 110.59 TWD 74
All 14 models by family
DCF Models
FCF DCF 69.31 TWD 104.17 TWD 212.89 TWD 38
5Y Revenue Exit 37.65 TWD 55.72 TWD 93.05 TWD 39
5Y EBITDA Exit 42.81 TWD 66.15 TWD 111.71 TWD 41
10Y Revenue Exit 46.90 TWD 83.32 TWD 102.15 TWD 36
10Y EBITDA Exit 51.37 TWD 94.18 TWD 164.22 TWD 37
Multiples
P/S Multiple 30.26 TWD 40.34 TWD 50.43 TWD 58
P/B Multiple 30.26 TWD 40.34 TWD 50.43 TWD 55
EV/EBIT 37.89 TWD 48.96 TWD 60.02 TWD 53
EV/EBITDA 31.30 TWD 40.17 TWD 49.04 TWD 54
EV/Revenue 23.00 TWD 30.85 TWD 38.69 TWD 43
Asset-Based
NCAV (Graham) 14.34 TWD 19.21 TWD 28.67 TWD 50
Growth DCF
Growth DCF 65.37 TWD 120.19 TWD 208.51 TWD 80
Rev-Margin DCF 40.21 TWD 63.16 TWD 110.59 TWD 74
Economic Profit
Residual Income 23.69 TWD 25.37 TWD 28.52 TWD 76

Widest divergence: DCF Models (83.32 TWD) versus Asset-Based (19.21 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 4.1B TWD
Revenue growth (YoY) -38.0%
Net margin 18.4%
Return on equity 7.1%
Free cash flow 1.5B TWD FY2025
P/E ratio 8.0
More key figures
Operating margin 8.0%
EPS (TTM) 2.36 TWD
EPS growth (YoY) -68.5%
Net debt 5.5B TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 67 · Market factors (momentum, volatility) 50

Profitability 35
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 96
Earnings quality: real cash, not paper profit
Fin. Strength 67
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 79
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

Kuo Yang Construction Co., Ltd. engages in the construction of public housing projects in Taiwan. The company also leases and sells commercial residential buildings, industrial plants, and commercial buildings.

Full company description

Kuo Yang Construction Co., Ltd. engages in the construction of public housing projects in Taiwan. The company also leases and sells commercial residential buildings, industrial plants, and commercial buildings. In addition, it is involved in the real estate investment, development, and rental and leasing services; department store business; hotel and restaurant management services; landscape and interior design services; and horticulture and afforestation services. The company was founded in 1972 and is based in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kuo Yang Construction Co reported revenue of 4.4B TWD in FY2025 versus 5.1B TWD in FY2021, a compound −3.9%/yr. Reported net income was 902M TWD in FY2025, compounding −2.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.4B TWD
Latest YoY
+619.3%
Avg. growth/yr (3Y) 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.
+3.4%
Avg. growth/yr (5Y) 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.
−21.1%
Avg. growth/yr (23Y) 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.
+5.7%
Revenue −3.9%/yr
FY21 5.1B TWD
FY22 4.0B TWD
FY23 735M TWD
FY24 608M TWD
FY25 4.4B TWD
Net income −2.1%/yr
FY21 982M TWD
FY22 486M TWD
FY23 304M TWD
FY24 198M TWD
FY25 902M TWD
Character of growth · EPS growth decomposed (2014-2025) +15.6 % p.a.
Revenue per share +0.3 pp

of which total revenue +2.7 pp · buybacks/dilution −2.4 pp

EBIT margin +6.7 pp
Tax rate +0.2 pp
Residual (interest, one-offs) +8.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Kuo Yang Construction Co Fair Value". https://www.fairvalue-calculator.com/stock/2505

Peer Group

Real Estate - Development · 588 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 67 · Top 25%
Fair Value upside +64% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 2% · Above median
Net margin (TTM) 18% · Above median
Operating margin (TTM) 8% · Below median
Revenue growth -38% · Bottom 25%
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Real Estate - Development median · lower = cheaper

P/E (TTM) 7.5× · Cheaper than median
P/B 0.62× · Pricier than median
P/S (TTM) 1.64× · Pricier than median
P/FCF 0.1× · Cheaper than median
EV/EBITDA 7.6× · Cheaper than median

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 100 · sector 48
FUTURE 0 · sector 0
PAST 29 · sector 10
HEALTH 96 · sector 84
DIVIDEND 0 · sector 38

Insider activity: 45/100

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 Real Estate - Development stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
DLF Limited DLF ₹657.75 ₹159.49 -76%
Lodha Developers Limited LODHA ₹1,188 ₹583.43 -51%
PT Pantai Indah Kapuk Dua Tbk, PANI 6,125 IDR 1,330 IDR -78%
Oberoi Realty Limited OBEROIRLTY ₹1,925 ₹1,183 -39%
Godrej Properties Limited GODREJPROP ₹2,102 ₹1,044 -50%
PT Jaya Real Property, Tbk., JRPT 1,080 IDR 1,674 IDR +55%
PT Bumi Serpong Damai Tbk, BSDE 555.00 IDR 1,388 IDR +150%
PT Sentul City Tbk, BKSL 64.00 IDR 84.16 IDR +32%
PT Ciputra Development Tbk, CTRA 555.00 IDR 1,388 IDR +150%
PT Duta Pertiwi Tbk DUTI 4,100 IDR 6,239 IDR +52%

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Frequently asked questions

Is Kuo Yang Construction Co (2505) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 29.68 TWD versus a price of 18.10 TWD, about +64% (undervalued).
What is the fair value of 2505?
Our model-based fair value for Kuo Yang Construction Co is 29.68 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 18.10 TWD.
What is the quality score of 2505?
Kuo Yang Construction Co has a Quality Score of 65/100. 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 Kuo Yang Construction Co (2505)?
Kuo Yang Construction Co reported trailing-twelve-month revenue of about 4.1B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 2505?
The net profit margin of Kuo Yang Construction Co is about 18.4%, meaning it keeps roughly 18.4% 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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