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DrayTek Corporation (6216) Fair Value & Analysis

Technology · TW · Market cap 2.2B TWD

DC DrayTek Corporation 6216 · TW
Price21.90 TWD
Fair Value11.88 TWD
Upside-45.8%
Quality48/100
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Weak Growth
Thin margins · 0.9% net margin
Low debt · generates free cash flow
4.71% dividend yield
Trails peers (3/13)
Narrow moat 21/100
Evidence: High Range 8.91 TWD – 12.18 TWD Share as image

Fair value as of: Jul 21, 2026

From 24 valuation models · updated 20 days ago

Share price −5.4% over the past month.

Below-average quality, and screening another 46% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (12.18 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

48.93 TWD 18.15 TWD Fair Value 11.88 TWD Mar 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 18.15 TWD – 48.93 TWD · fair‑value band 8.91 TWD – 12.18 TWD · the 21.90 TWD price screens above the 11.88 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

Full chart & analysis →

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Analysis

DrayTek Corporation (6216) currently trades at 21.90 TWD, while our model-based Fair Value estimate is 11.88 TWD, implying the stock looks roughly 45.8% overvalued today. The Quality Score stands at 48/100 (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: high).

Over the trailing twelve months, DrayTek Corporation generated revenue of 690M TWD at a net margin of 0.9%. Revenue declined 32.9% year over year. It earns a return on equity of 0.3%. The balance sheet holds a net cash position of 344M TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 8.91 TWD (bear case) to 12.18 TWD (bull case); at 21.90 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 27% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -46%, 6216 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 4.40 TWD 5.09 TWD 6.25 TWD 80
Residual Income 13.09 TWD 12.92 TWD 11.13 TWD 76
Rev-Margin DCF 6.05 TWD 8.30 TWD 11.00 TWD 74
All 24 models by family
DCF Models
FCF DCF 4.31 TWD 5.04 TWD 6.34 TWD 38
Owner Earnings 8.05 TWD 10.15 TWD 13.90 TWD 31
5Y Revenue Exit 6.05 TWD 8.25 TWD 11.45 TWD 39
5Y EBITDA Exit 6.50 TWD 9.03 TWD 12.38 TWD 41
5Y P/E Exit 7.70 TWD 11.11 TWD 15.16 TWD 38
10Y Revenue Exit 5.20 TWD 6.74 TWD 8.44 TWD 36
10Y EBITDA Exit 5.60 TWD 7.21 TWD 8.97 TWD 37
10Y P/E Exit 6.31 TWD 8.47 TWD 10.56 TWD 35
Earnings-Based
Graham-Dodd 4.04 TWD 4.94 TWD 5.55 TWD 54
EPV 7.11 TWD 7.87 TWD 8.52 TWD 59
Dividend Discount
Gordon GGM 22.14 TWD 24.13 TWD 27.14 TWD 70
DDM Multi-Stage 22.14 TWD 27.36 TWD 34.48 TWD 61
Multiples
P/E Multiple 8.91 TWD 11.88 TWD 14.85 TWD 63
P/S Multiple 7.57 TWD 10.10 TWD 12.62 TWD 58
P/B Multiple 7.57 TWD 10.10 TWD 12.62 TWD 55
EV/EBIT 10.22 TWD 12.86 TWD 15.49 TWD 53
EV/EBITDA 8.91 TWD 11.10 TWD 13.30 TWD 54
EV/Revenue 7.65 TWD 9.93 TWD 12.21 TWD 43
Asset-Based
NCAV (Graham) 9.01 TWD 12.07 TWD 18.02 TWD 50
Growth DCF
Growth DCF 4.40 TWD 5.09 TWD 6.25 TWD 80
Rev-Margin DCF 6.05 TWD 8.30 TWD 11.00 TWD 74
Economic Profit
Residual Income 13.09 TWD 12.92 TWD 11.13 TWD 76
ROIC Compounder 7.11 TWD 7.87 TWD 8.52 TWD 72
Growth Earnings
Growth-Adj P/E 6.30 TWD 9.01 TWD 11.71 TWD 68

Widest divergence: Dividend Discount (24.13 TWD) versus Earnings-Based (4.94 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 690M TWD
Revenue growth (YoY) -32.9%
Net margin 0.9%
Return on equity 0.3%
Free cash flow 20.8M TWD FY2025
P/E ratio 37.6
More key figures
Operating margin -14.6%
EPS (TTM) 0.5900 TWD
Dividend yield 4.7%
EPS growth (YoY) -44.1%
Net cash 344M TWD FY2025

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

Quality Score breakdown

Overall quality 48/100

Of which business quality 49 · Market factors (momentum, volatility) 38

Profitability 30
Margins and returns on capital today
Quality Growth 4
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 72
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

DrayTek Corporation engages in the research, development, production, and sale of wired and wireless communication machinery and equipment in Taiwan, Europe, Asia, Central and South America, and internationally.

Full company description

DrayTek Corporation engages in the research, development, production, and sale of wired and wireless communication machinery and equipment in Taiwan, Europe, Asia, Central and South America, and internationally. The company offers VPN, load balancing, DSL modem, cellular, and fiber routers; access points; managed PoE switches; and accessories, including rack-mount brackets, USB termometers, indoor antennas, passive copper cables, dual band USB wireless adapters, and PoE injectors. It also provides software/tools, including Vigor ACS 3, a network management system; VigorConnect, a local network management software; Smart VPN Client, a VPN client software; DrayTek Router and Wireless Apps for network management; and VigorSMS APP, a way to send SMS from LTE routers. In addition, the company offers information software services; internet gateway solutions for VPN, SSL VPN, VPN matcher, WAN load-balancing, hotspot web portal, wireless WAN, and work from home solutions; DrayDDNS, a DNS service; assisted Wi-Fi roaming and wireless solutions; identity and access management, URL/IP reputation, and NIS 2 security aligned solutions; switch stacking and OpenFlow VigorSwitch, which extends SDN; and AP and switch management solutions. DrayTek Corporation was founded in 1997 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

DrayTek Corporation reported revenue of 757M TWD in FY2025 versus 931M TWD in FY2021, a compound −5.0%/yr. Reported net income was 57.6M TWD in FY2025, compounding −22.7%/yr from FY2021.

Growth Quality 32/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
757M TWD
Latest YoY
−35.7%
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.
−5.6%
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.
−2.1%
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.
+1.0%
Revenue −5.0%/yr
FY21 931M TWD
FY22 899M TWD
FY23 775M TWD
FY24 1.2B TWD
FY25 757M TWD
Net income −22.7%/yr
FY21 161M TWD
FY22 176M TWD
FY23 123M TWD
FY24 272M TWD
FY25 57.6M TWD
Character of growth · EPS growth decomposed (2014-2025) −6.0 % p.a.
Revenue per share −4.0 pp

of which total revenue −2.0 pp · buybacks/dilution −1.9 pp

EBIT margin −5.8 pp
Tax rate +0.7 pp
Residual (interest, one-offs) +3.2 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).

6216 screens 46% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "DrayTek Corporation Fair Value". https://www.fairvalue-calculator.com/stock/6216

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 48 · Below median
Fair Value upside −46% · Below median
Return on equity (TTM) 0% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) -15% · Bottom 25%
Revenue growth -33% · Bottom 25%
Dividend yield (TTM) 4.7% · Top 25%
Debt / equity 0.07× · Higher than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 37.6× · Pricier than median
P/S (TTM) 0.10× · Cheaper than 75% of peers
P/FCF 3.2× · Cheaper than median
PEG 4.57× · 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 0 · sector 30
PAST 1 · sector 15
HEALTH 97 · sector 98
DIVIDEND 94 · 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 Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 21, 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 DrayTek Corporation (6216) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 11.88 TWD versus a price of 21.90 TWD, about −46% (overvalued).
What is the fair value of 6216?
Our model-based fair value for DrayTek Corporation is 11.88 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 21.90 TWD.
What is the quality score of 6216?
DrayTek Corporation has a Quality Score of 48/100. 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 DrayTek Corporation (6216)?
DrayTek Corporation reported trailing-twelve-month revenue of about 690M TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 6216?
The net profit margin of DrayTek Corporation is about 0.9%, meaning it keeps roughly 0.9% of revenue as net income. Based on the latest reported figures.
Does DrayTek Corporation pay a dividend?
DrayTek Corporation currently shows a dividend yield of about 4.60% 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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