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Te Chang Construction Co (5511) Fair Value & Analysis

Industrials · TW · Market cap 9.7B TWD

TC Te Chang Construction Co 5511 · TWO
Price71.50 TWD
Fair Value150.90 TWD
Upside+111.1%
Quality73/100
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Healthy Growth
Solidly profitable · 11.8% net margin
Low debt · generates free cash flow
4.35% dividend yield
Ranks above peers (12/14)
Moderate moat 60/100
Evidence: High Range 113.17 TWD – 247.46 TWD Share as image

Fair value as of: Jul 21, 2026

From 24 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from 180.91 TWD to 150.90 TWD (−16.6%) since Jun 25, 2026. Share price +13.0% over the past month.

A solid business, screening 111% undervalued on our models.

What matters now

  • The rarer combination: high quality (73/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (113.17 TWD). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (113.17 TWD to 247.46 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

1,790 TWD 17.02 TWD Fair Value 150.90 TWD Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range 17.02 TWD – 1,790 TWD · fair‑value band 113.17 TWD – 247.46 TWD · the 71.50 TWD price screens below the 150.90 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Te Chang Construction Co (5511) currently trades at 71.50 TWD, while our model-based Fair Value estimate is 150.90 TWD, implying the stock looks roughly 111.1% undervalued today. The Quality Score stands at 73/100 (solid quality), in the Industrials 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, Te Chang Construction Co generated revenue of 11.6B TWD at a net margin of 11.8%. Revenue grew 27.4% year over year. It earns a return on equity of 19.8%. Net debt stands at 504M TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 113.17 TWD (bear case) to 247.46 TWD (bull case); at 71.50 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 7% below its 52-week high and 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 111%, 5511 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 157.00 TWD 271.60 TWD 465.41 TWD 80
Residual Income 56.23 TWD 74.14 TWD 234.01 TWD 76
Rev-Margin DCF 128.32 TWD 213.93 TWD 330.55 TWD 74
All 24 models by family
DCF Models
FCF DCF 160.31 TWD 286.95 TWD 529.64 TWD 38
Owner Earnings 128.69 TWD 232.23 TWD 417.55 TWD 31
5Y Revenue Exit 128.32 TWD 216.48 TWD 338.74 TWD 39
5Y EBITDA Exit 132.14 TWD 224.76 TWD 343.77 TWD 41
5Y P/E Exit 150.75 TWD 265.04 TWD 400.73 TWD 38
10Y Revenue Exit 134.44 TWD 222.93 TWD 364.89 TWD 36
10Y EBITDA Exit 140.37 TWD 229.03 TWD 369.21 TWD 37
10Y P/E Exit 152.68 TWD 258.72 TWD 418.13 TWD 35
Earnings-Based
Graham-Dodd 60.36 TWD 328.77 TWD 455.92 TWD 54
Lynch FV 91.28 TWD 130.39 TWD 169.51 TWD 50
PEG = 1.0 91.28 TWD 130.39 TWD 169.51 TWD 46
EPV 93.22 TWD 105.54 TWD 116.17 TWD 59
Multiples
P/E Multiple 139.80 TWD 186.40 TWD 233.01 TWD 63
P/S Multiple 113.17 TWD 150.90 TWD 188.62 TWD 58
P/B Multiple 113.17 TWD 150.90 TWD 188.62 TWD 55
EV/EBIT 152.04 TWD 197.66 TWD 243.28 TWD 53
EV/EBITDA 125.84 TWD 162.72 TWD 199.60 TWD 54
EV/Revenue 112.87 TWD 154.73 TWD 196.59 TWD 43
Asset-Based
NCAV (Graham) 25.32 TWD 33.93 TWD 50.64 TWD 50
Growth DCF
Growth DCF 157.00 TWD 271.60 TWD 465.41 TWD 80
Rev-Margin DCF 128.32 TWD 213.93 TWD 330.55 TWD 74
Economic Profit
Residual Income 56.23 TWD 74.14 TWD 234.01 TWD 76
ROIC Compounder 105.65 TWD 137.18 TWD 177.61 TWD 72
Growth Earnings
Growth-Adj P/E 133.25 TWD 190.35 TWD 247.46 TWD 68

Widest divergence: DCF Models (229.03 TWD) versus Asset-Based (33.93 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 11.6B TWD
Revenue growth (YoY) +27.4%
Net margin 11.8%
Return on equity 19.8%
Free cash flow 1.5B TWD FY2025
P/E ratio 8.1
More key figures
Operating margin 13.7%
EPS (TTM) 8.82 TWD
Dividend yield 4.4%
EPS growth (YoY) +120%
Net debt 504M TWD FY2023

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 71 · Market factors (momentum, volatility) 61

Profitability 50
Margins and returns on capital today
Quality Growth 76
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 78
Price trend over the last 3–12 months (market factor)
52W Momentum 46
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

Te Chang Construction Co., Ltd. engages in the construction contracting and civil engineering business in Taiwan and Thailand.

Full company description

Te Chang Construction Co., Ltd. engages in the construction contracting and civil engineering business in Taiwan and Thailand. The company undertakes various projects, such as public buildings, hospital, school, social housing, redevelopment of national housing and military dependents' villages, technology plants, commercial buildings, office buildings, civil engineering, and other projects. It also provides electrical, mechanical, fire-fighting, and air-conditioning equipment engineering services; construction planning, design, and management services; and general advertisement services. In addition, the company is involved in the rental and sale of residential and buildings; wastewater treatment and integrated manufacturing business; operates general retail and department stores; manufactures tires, bicycles, and bicycle parts, as well as mortar, ready-mixed concrete, and household stones; wholesales and retails building materials; and trades in real estate. Te Chang Construction Co., Ltd. was founded in 1986 and is based in Taichung, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Te Chang Construction Co reported revenue of 11.1B TWD in FY2025 versus 6.2B TWD in FY2021, a compound +15.8%/yr. Reported net income was 1.2B TWD in FY2025, compounding +26.5%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
11.1B TWD
Latest YoY
+18.0%
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.
+9.3%
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.
+15.5%
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.
+13.5%
Revenue +15.8%/yr
FY21 6.2B TWD
FY22 8.5B TWD
FY23 10.5B TWD
FY24 9.4B TWD
FY25 11.1B TWD
Net income +26.5%/yr
FY21 471M TWD
FY22 542M TWD
FY23 1.2B TWD
FY24 853M TWD
FY25 1.2B TWD

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Cite: Fair Value Calculator (2026). "Te Chang Construction Co Fair Value". https://www.fairvalue-calculator.com/stock/5511

Peer Group

Engineering & Construction · 839 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 73 · Top 25%
Fair Value upside +111% · Top 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth 27% · Top 25%
Dividend yield (TTM) 4.4% · Top 25%
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 8.1× · Cheaper than 75% of peers
P/B 1.41× · Pricier than median
P/S (TTM) 0.84× · Pricier than median
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 4.6× · 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 100 · sector 16
FUTURE 100 · sector 17
PAST 79 · sector 26
HEALTH 97 · sector 94
DIVIDEND 87 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Te Chang Construction Co (5511) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 150.90 TWD versus a price of 71.50 TWD, about +111% (undervalued).
What is the fair value of 5511?
Our model-based fair value for Te Chang Construction Co is 150.90 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 71.50 TWD.
What is the quality score of 5511?
Te Chang Construction Co has a Quality Score of 73/100. 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 Te Chang Construction Co (5511)?
Te Chang Construction Co reported trailing-twelve-month revenue of about 11.6B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 5511?
The net profit margin of Te Chang Construction Co is about 11.8%, meaning it keeps roughly 11.8% of revenue as net income. Based on the latest reported figures.
Does Te Chang Construction Co pay a dividend?
Te Chang Construction Co currently shows a dividend yield of about 4.74% relative to its recent price (as of Jul 21, 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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