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Tainet Communication System Corp (4905) Fair Value & Analysis

Technology · TW · Market cap 2.0B TWD

TC Tainet Communication System Corp 4905 · TWO
Price68.20 TWD
Fair Value67.42 TWD
Upside-1.1%
Quality45/100
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Expensive Growth
Solidly profitable · 15.5% net margin
Low debt · negative free cash flow
2.26% dividend yield
Mixed vs. peers (7/13)
Narrow moat 38/100
Evidence: Medium Range 35.16 TWD – 67.42 TWD Share as image

Fair value as of: Jul 23, 2026

From 16 valuation models · updated 18 days ago

Fair value updated Jul 23, 2026, revised from 71.21 TWD to 67.42 TWD (−5.3%) since Jul 11, 2026. Share price +1.5% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (35.16 TWD to 67.42 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

123.50 TWD 50.10 TWD Fair Value 67.42 TWD Dec 2020 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 50.10 TWD – 123.50 TWD · fair‑value band 35.16 TWD – 67.42 TWD · the 68.20 TWD price screens above the 67.42 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Tainet Communication System Corp (4905) currently trades at 68.20 TWD, while our model-based Fair Value estimate is 67.42 TWD, implying the stock looks roughly 1.1% fairly valued today. The Quality Score stands at 45/100 (below-average 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, Tainet Communication System Corp generated revenue of 785M TWD at a net margin of 15.5%. Revenue grew 38.5% year over year. It earns a return on equity of 4.6%. Net debt stands at 736M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 35.16 TWD (bear case) to 67.42 TWD (bull case); at 68.20 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 37% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -1%, 4905 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
Residual Income 66.85 TWD 63.76 TWD 49.51 TWD 76
ROIC Compounder 5.09 TWD 5.33 TWD 5.52 TWD 72
Gordon GGM 11.65 TWD 21.00 TWD 28.91 TWD 70
All 16 models by family
Earnings-Based
Graham-Dodd 18.75 TWD 130.77 TWD 183.52 TWD 54
Lynch FV 67.56 TWD 96.51 TWD 125.47 TWD 50
PEG = 1.0 67.56 TWD 96.51 TWD 125.47 TWD 46
EPV 5.09 TWD 5.33 TWD 5.52 TWD 59
Dividend Discount
Gordon GGM 11.65 TWD 21.00 TWD 28.91 TWD 70
DDM Multi-Stage 11.65 TWD 19.18 TWD 22.43 TWD 61
Multiples
P/E Multiple 41.36 TWD 55.15 TWD 68.94 TWD 63
P/S Multiple 35.16 TWD 46.88 TWD 58.60 TWD 58
P/B Multiple 35.16 TWD 46.88 TWD 58.60 TWD 55
EV/EBIT 6.73 TWD 7.85 TWD 8.96 TWD 53
EV/EBITDA 19.12 TWD 24.37 TWD 29.61 TWD 54
EV/Revenue 5.64 TWD 6.61 TWD 7.58 TWD 43
Asset-Based
NCAV (Graham) 49.12 TWD 65.82 TWD 98.24 TWD 50
Economic Profit
Residual Income 66.85 TWD 63.76 TWD 49.51 TWD 76
ROIC Compounder 5.09 TWD 5.33 TWD 5.52 TWD 72
Growth Earnings
Growth-Adj P/E 87.06 TWD 124.37 TWD 161.68 TWD 68

Widest divergence: Growth Earnings (124.37 TWD) versus Economic Profit (5.33 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 785M TWD
Revenue growth (YoY) +38.5%
Net margin 15.5%
Return on equity 4.6%
Free cash flow −190M TWD FY2025
P/E ratio 26.2
More key figures
Operating margin 0.6%
EPS (TTM) 2.75 TWD
EPS growth (YoY) +178%
Net debt 736M TWD FY2025

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

Quality Score breakdown

Overall quality 45/100

Of which business quality 43 · Market factors (momentum, volatility) 47

Profitability 22
Margins and returns on capital today
Quality Growth 76
Are margins and returns improving?
Cashflow 12
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 83
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

Tainet Communication System Corp. provides carrier class access equipment to telecommunication companies, service operators, and business users worldwide. The company offers Ethernet access devices, fiber optics, VoIP gateway products, xDSL and analog modems, LTE routers, PON, and optical transceivers.

Full company description

Tainet Communication System Corp. provides carrier class access equipment to telecommunication companies, service operators, and business users worldwide. The company offers Ethernet access devices, fiber optics, VoIP gateway products, xDSL and analog modems, LTE routers, PON, and optical transceivers. It also provides wireless access and data communication; voice services in complex network environments and VoIP gateway communication; xDSL Ethernet, multi service extension, and railway solutions for TRA; TDM over IP communication; and copper over fiber connectivity solutions. Tainet Communication System Corp. was founded in 1980 and is headquartered in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tainet Communication System Corp reported revenue of 727M TWD in FY2025 versus 59.3M TWD in FY2021, a compound +87.1%/yr. Reported net income was 80.7M TWD in FY2025, compounding +13.9%/yr from FY2021.

Growth Quality 57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
727M TWD
Latest YoY
+22.6%
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.
+106.2%
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.
+62.3%
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.
+29.9%
Revenue +87.1%/yr
FY21 59.3M TWD
FY22 82.9M TWD
FY23 115M TWD
FY24 593M TWD
FY25 727M TWD
Net income +13.9%/yr
FY21 47.9M TWD
FY22 −44.0M TWD
FY23 164M TWD
FY24 85.1M TWD
FY25 80.7M TWD

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Cite: Fair Value Calculator (2026). "Tainet Communication System Corp Fair Value". https://www.fairvalue-calculator.com/stock/4905

Peer Group

Communication Equipment · 286 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 45 · Below median
Fair Value upside −1% · Above median
Return on equity (TTM) 5% · Above median
Return on assets 0% · Below median
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 1% · Below median
Revenue growth 39% · Top 25%
Dividend yield (TTM) 2.3% · Above median
Debt / equity 0.06× · Higher than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 24.5× · Cheaper than median
P/B 0.69× · Cheaper than 75% of peers
P/S (TTM) 2.51× · Pricier than median
EV/EBITDA 76.2× · 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 32 · sector 0
FUTURE 100 · sector 30
PAST 18 · sector 15
HEALTH 97 · sector 98
DIVIDEND 45 · sector 25

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

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Suzhou TFC Optical Communication Co 300394 ¥244.13 ¥32.04 -87%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
ZTE Corporation 000063 ¥40.00 ¥15.75 -61%

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Frequently asked questions

Is Tainet Communication System Corp (4905) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 67.42 TWD versus a price of 68.20 TWD, about −1% (fairly valued).
What is the fair value of 4905?
Our model-based fair value for Tainet Communication System Corp is 67.42 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 68.20 TWD.
What is the quality score of 4905?
Tainet Communication System Corp has a Quality Score of 45/100. 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 Tainet Communication System Corp (4905)?
Tainet Communication System Corp reported trailing-twelve-month revenue of about 785M TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 4905?
The net profit margin of Tainet Communication System Corp is about 15.5%, meaning it keeps roughly 15.5% 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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