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Tah Kong Chemical Industrial Corporation (4706) Fair Value & Analysis

Basic Materials · TW · Market cap 2.6B TWD

TK Tah Kong Chemical Industrial Corporation 4706 · TWO
Price31.60 TWD
Fair Value10.28 TWD
Upside-67.5%
Quality51/100
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Weak Growth
Thin margins · 3.0% net margin
negative free cash flow
Trails peers (1/12)
Narrow moat 29/100
Evidence: Medium Range 7.72 TWD – 12.85 TWD Share as image

Fair value as of: Jul 23, 2026

From 15 valuation models · updated 18 days ago

Fair value updated Jul 23, 2026, revised from 6.03 TWD to 10.28 TWD (+70.5%) since Jul 11, 2026. Share price −1.1% over the past month.

A solid business, but screening 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (12.85 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)

35.90 TWD 14.99 TWD Fair Value 10.28 TWD Feb 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 14.99 TWD – 35.90 TWD · fair‑value band 7.72 TWD – 12.85 TWD · the 31.60 TWD price screens above the 10.28 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Tah Kong Chemical Industrial Corporation (4706) currently trades at 31.60 TWD, while our model-based Fair Value estimate is 10.28 TWD, implying the stock looks roughly 67.5% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Basic Materials 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, Tah Kong Chemical Industrial Corporation generated revenue of 1.1B TWD at a net margin of 2.5%. Revenue grew 12.2% year over year. It earns a return on equity of 1.8%. The stock trades on a trailing P/E of 90.7. Fundamentals as of Jul 23, 2026

Our scenario range runs from 7.72 TWD (bear case) to 12.85 TWD (bull case); at 31.60 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 9% below its 52-week high and 20% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -67%, 4706 screens richer 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
Residual Income 13.32 TWD 12.75 TWD 9.85 TWD 76
Gordon GGM 6.15 TWD 6.70 TWD 7.54 TWD 70
Growth-Adj P/E 3.22 TWD 4.61 TWD 5.99 TWD 68
All 15 models by family
DCF Models
Owner Earnings 2.97 TWD 3.26 TWD 3.78 TWD 31
Earnings-Based
Graham-Dodd 2.41 TWD 2.95 TWD 3.32 TWD 54
EPV 4.19 TWD 4.51 TWD 4.78 TWD 59
Dividend Discount
Gordon GGM 6.15 TWD 6.70 TWD 7.54 TWD 70
DDM Multi-Stage 6.15 TWD 7.60 TWD 9.57 TWD 61
Multiples
P/E Multiple 4.53 TWD 6.03 TWD 7.54 TWD 63
P/S Multiple 4.53 TWD 6.03 TWD 7.54 TWD 58
P/B Multiple 4.53 TWD 6.03 TWD 7.54 TWD 55
EV/EBIT 6.83 TWD 8.38 TWD 9.93 TWD 53
EV/EBITDA 8.74 TWD 10.92 TWD 13.11 TWD 54
EV/Revenue 6.21 TWD 7.93 TWD 9.66 TWD 43
Asset-Based
NCAV (Graham) 9.57 TWD 12.83 TWD 19.15 TWD 50
Economic Profit
Residual Income 13.32 TWD 12.75 TWD 9.85 TWD 76
ROIC Compounder 4.19 TWD 4.51 TWD 4.78 TWD 67
Growth Earnings
Growth-Adj P/E 3.22 TWD 4.61 TWD 5.99 TWD 68

Widest divergence: Asset-Based (12.83 TWD) versus Earnings-Based (2.95 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.1B TWD
Revenue growth (YoY) +12.2%
Net margin 2.5%
Return on equity 1.8%
Free cash flow −27.1M TWD FY2025
P/E ratio 90.7
More key figures
Operating margin 8.2%
EPS (TTM) 0.3500 TWD
EPS growth (YoY) +68.2%

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

Quality Score breakdown

Overall quality 51/100

Of which business quality 50 · Market factors (momentum, volatility) 60

Profitability 26
Margins and returns on capital today
Quality Growth 19
Are margins and returns improving?
Cashflow 16
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 55
Distance to the 52-week high (market factor)
Net Issuance 82
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

Tah Kong Chemical Industrial Corporation manufactures, processes, and sells paints, pigments, and intermediates in Taiwan, Asia, and internationally. The company offers PVC, PU, and polyolefin processed pigments.

Full company description

Tah Kong Chemical Industrial Corporation manufactures, processes, and sells paints, pigments, and intermediates in Taiwan, Asia, and internationally. The company offers PVC, PU, and polyolefin processed pigments. It also provides aqueous pigment dispersions and UV curable products; and organic pigments for various applications, including ink, plastic, rubber, fiber, paint, stationery, etc. In addition, the company offers functional masterbatch that includes non-halogen flame retardant TPU compound, TPU anti-blocking and lubricant masterbatch, TPU fogging agent masterbatch, black electric conductive, TPA weather resistant PE functional masterbatch, and anti-microbial PE masterbatch. Tah Kong Chemical Industrial Corporation was incorporated in 1966 and is headquartered in Taipei City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tah Kong Chemical Industrial Corporation reported revenue of 1.1B TWD in FY2025 versus 1.4B TWD in FY2021, a compound −6.4%/yr. Reported net income was 28.0M TWD in FY2025, compounding −25.1%/yr from FY2021.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.1B TWD
Latest YoY
−7.3%
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.
−3.1%
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.
−3.1%
Avg. growth/yr (8Y) 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.
−4.9%
Revenue −6.4%/yr
FY21 1.4B TWD
FY22 1.2B TWD
FY23 1.1B TWD
FY24 1.2B TWD
FY25 1.1B TWD
Net income −25.1%/yr
FY21 89.2M TWD
FY22 50.9M TWD
FY23 5.6M TWD
FY24 78.1M TWD
FY25 28.0M TWD

4706 screens 67% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Tah Kong Chemical Industrial Corporation Fair Value". https://www.fairvalue-calculator.com/stock/4706

Peer Group

Specialty Chemicals · 673 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 −68% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 8% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 95.7× · Pricier than 75% of peers
P/B 1.75× · Pricier than median
P/S (TTM) 2.34× · Pricier than median
EV/EBITDA 31.6× · 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 42 · sector 19
PAST 9 · sector 23
HEALTH 0 · sector 95
DIVIDEND 0 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is Tah Kong Chemical Industrial Corporation (4706) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 10.28 TWD versus a price of 31.60 TWD, about −67% (overvalued).
What is the fair value of 4706?
Our model-based fair value for Tah Kong Chemical Industrial Corporation is 10.28 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 31.60 TWD.
What is the quality score of 4706?
Tah Kong Chemical Industrial 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 Tah Kong Chemical Industrial Corporation (4706)?
Tah Kong Chemical Industrial Corporation reported trailing-twelve-month revenue of about 1.1B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 4706?
The net profit margin of Tah Kong Chemical Industrial Corporation is about 2.5%, meaning it keeps roughly 2.5% 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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