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ArcSoft Corporation (688088) Fair Value & Analysis

Technology · CN · Market cap 14.5B CNY

AC ArcSoft Corporation 688088 · SHG
Price¥34.57
Fair Value¥12.85
Upside-62.8%
Quality77/100
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Healthy Growth
Highly profitable · 27.9% net margin
generates free cash flow
0.90% dividend yield
Mixed vs. peers (6/13)
Moderate moat 63/100
Evidence: High Range ¥9.64 – ¥15.77 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Share price −0.6% over the past month.

A strong business, but screening 63% overvalued on our models.

What matters now

  • A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥15.77). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥62.47 ¥21.24 Fair Value ¥12.85 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥21.24 – ¥62.47 · fair‑value band ¥9.64 – ¥15.77 · the ¥34.57 price screens above the ¥12.85 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

ArcSoft Corporation (688088) currently trades at ¥34.57, while our model-based Fair Value estimate is ¥12.85, implying the stock looks roughly 62.8% overvalued today. The Quality Score stands at 77/100 (high 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, ArcSoft Corporation generated revenue of 941M CNY at a net margin of 27.9%. Revenue grew 8.5% year over year. It earns a return on equity of 9.5%. The balance sheet holds a net cash position of 1.2B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥9.64 (bear case) to ¥15.77 (bull case); at ¥34.57, 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 48% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -63%, 688088 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 BearBaseBull Evidence
Highest evidence
Residual Income ¥5.95 ¥6.54 ¥8.80 76
Growth DCF ¥8.87 ¥15.39 ¥25.59 72
Gordon GGM ¥4.31 ¥8.96 ¥14.22 70
All 26 models by family
DCF Models
FCF DCF ¥9.04 ¥14.88 ¥28.46 38
Owner Earnings ¥12.19 ¥22.06 ¥40.81 31
5Y Revenue Exit ¥7.26 ¥11.15 ¥16.59 39
5Y EBITDA Exit ¥9.50 ¥16.08 ¥24.76 41
5Y P/E Exit ¥10.77 ¥18.88 ¥28.72 38
10Y Revenue Exit ¥7.63 ¥11.67 ¥18.25 36
10Y EBITDA Exit ¥9.31 ¥15.42 ¥25.55 37
10Y P/E Exit ¥10.18 ¥17.55 ¥29.08 35
Earnings-Based
Graham-Dodd ¥4.37 ¥24.89 ¥34.59 54
Lynch FV ¥7.00 ¥10.00 ¥12.99 50
PEG = 1.0 ¥7.00 ¥10.00 ¥12.99 46
EPV ¥8.32 ¥9.31 ¥10.18 59
Dividend Discount
Gordon GGM ¥4.31 ¥8.96 ¥14.22 70
DDM Multi-Stage ¥4.31 ¥7.56 ¥9.41 61
Multiples
P/E Multiple ¥9.64 ¥12.85 ¥16.06 63
P/S Multiple ¥4.31 ¥5.75 ¥7.19 58
P/B Multiple ¥8.19 ¥10.92 ¥13.65 55
EV/EBIT ¥11.73 ¥14.84 ¥17.96 53
EV/EBITDA ¥10.11 ¥12.68 ¥15.25 54
EV/Revenue ¥6.42 ¥8.15 ¥9.87 43
Asset-Based
NCAV (Graham) ¥3.41 ¥4.57 ¥6.82 50
Growth DCF
Growth DCF ¥8.87 ¥15.39 ¥25.59 72
Rev-Margin DCF ¥7.26 ¥11.02 ¥16.24 67
Economic Profit
Residual Income ¥5.95 ¥6.54 ¥8.80 76
ROIC Compounder ¥9.20 ¥12.24 ¥15.54 67
Growth Earnings
Growth-Adj P/E ¥10.17 ¥14.53 ¥18.90 68

Widest divergence: DCF Models (¥15.42) versus Asset-Based (¥4.57). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 941M CNY
Revenue growth (YoY) +8.5%
Net margin 27.9%
Return on equity 9.5%
Free cash flow 189M CNY FY2025
P/E ratio 55.4
More key figures
Operating margin 21.0%
EPS (TTM) ¥0.6500
Dividend yield 0.9%
EPS growth (YoY) +8.3%
Net cash 1.2B CNY FY2024

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 77/100

Of which business quality 74 · Market factors (momentum, volatility) 24

Profitability 54
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 80
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

ArcSoft Corporation Limited operates as an algorithm and software solution provider in the computer vision industry worldwide.

Full company description

ArcSoft Corporation Limited operates as an algorithm and software solution provider in the computer vision industry worldwide. It offers image and video solutions for front and rear-facing smartphone cameras to assist phone manufacturers; camera solutions, including performance optimizations, network SDKs, and full customizable applications for various platforms; motion sensing controller solutions; refrigerator software; automobile digital video recorders solutions; projector solutions; and live video broadcasting apps. The company was founded in 2003 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ArcSoft Corporation reported revenue of ¥923M in FY2025 versus ¥573M in FY2021, a compound +12.7%/yr. Reported net income was ¥258M in FY2025, compounding +16.3%/yr from FY2021.

Growth Quality 77/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
923M CNY
Latest YoY
+13.2%
Avg. growth/yr (3Y)
+20.2%
Avg. growth/yr (5Y)
+6.2%
Avg. growth/yr (9Y)
+15.1%
Revenue +12.7%/yr
FY21 ¥573M
FY22 ¥532M
FY23 ¥670M
FY24 ¥815M
FY25 ¥923M
Net income +16.3%/yr
FY21 ¥141M
FY22 ¥57.8M
FY23 ¥89.6M
FY24 ¥175M
FY25 ¥258M

688088 screens 63% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "ArcSoft Corporation Fair Value". https://www.fairvalue-calculator.com/stock/688088

Peer Group

Information Technology Services · 480 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 77 · Top 25%
Fair Value upside −63% · Bottom 25%
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 0.9% · Below median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 55.4× · Pricier than 75% of peers
P/B 5.28× · Pricier than 75% of peers
P/S (TTM) 15.37× · Pricier than 75% of peers
P/FCF 11.4× · Pricier than 75% of peers
EV/EBITDA 57.0× · 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 20
FUTURE 43 · sector 29
PAST 38 · sector 36
HEALTH 0 · sector 97
DIVIDEND 18 · sector 37

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 Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is ArcSoft Corporation (688088) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥12.85 versus a price of ¥34.57, about −63% (overvalued).
What is the fair value of 688088?
Our model-based fair value for ArcSoft Corporation is ¥12.85 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥34.57.
What is the quality score of 688088?
ArcSoft Corporation has a Quality Score of 77/100. 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 ArcSoft Corporation (688088)?
ArcSoft Corporation reported trailing-twelve-month revenue of about 941M CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688088?
The net profit margin of ArcSoft Corporation is about 27.9%, meaning it keeps roughly 27.9% of revenue as net income. Based on the latest reported figures.
Does ArcSoft Corporation pay a dividend?
ArcSoft Corporation currently shows a dividend yield of about 0.90% relative to its recent price (as of Jul 12, 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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