Song Chuan Precision Co., Ltd. (7788) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Song Chuan Precision Co., Ltd. TWD 80.45, price TWD 290, upside -72.2%, quality 42 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
23‑month range 99.13 TWD – 335.00 TWD · fair‑value band 52.58 TWD – 104.58 TWD · the 289.50 TWD price screens above the 80.45 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Song Chuan Precision Co., Ltd. manufactures and sells electromechanical power relays in Taiwan and internationally. It primarily offers relays, PCB and plug-in automotive relays, PCB miniature power relays, industrial and general-purpose relays, and safety relays for home appliance, automotive, IT product, and other applications.
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Song Chuan Precision Co., Ltd. manufactures and sells electromechanical power relays in Taiwan and internationally. It primarily offers relays, PCB and plug-in automotive relays, PCB miniature power relays, industrial and general-purpose relays, and safety relays for home appliance, automotive, IT product, and other applications. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan.
Stock analysis
Song Chuan Precision Co., Ltd. (7788) currently trades at 289.50 TWD, while our model-based Fair Value estimate is 80.45 TWD, implying the stock looks roughly 259.8% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of 91.24 TWD per share, and 0 of the 26 models we run sit above the 289.50 TWD price.
Bear case: the Earnings-Based group reads lowest at 20.66 TWD, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: 52.58 TWD (bear) to 104.58 TWD (bull), the price of 289.50 TWD sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Industrials sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Song Chuan Precision Co., Ltd. reported revenue of 6.4B TWD in FY2025 versus 5.2B TWD in FY2021, a compound +5.4%/yr. Reported net income was 269M TWD in FY2025, compounding +21.7%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap 23.1B TWD (≈ $725M) · P/E ratio 79.8 · P/S ratio 3.34 · EPS (TTM) 3.63 TWD · Dividend yield 0.7% · Net margin 4.2% · Return on equity 5.5% · Return on assets (EBIT) 4.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 192% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −36% fair-value upside, at −72%, 7788 screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (20.66 TWD to 201.31 TWD). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear 52.58 TWDFair Value 80.45 TWDBull 104.58 TWD
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (4.76 TWD per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+7.9%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+1.6%
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years), in TWD ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+8.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.1%
Dividend (yield on the price)0.7%
Profit margin 2021 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.6% → 7%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+63.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about +60.5% a year for the price.
Compare Song Chuan Precision Co., Ltd. with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Electrical Equipment & Parts · 550 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score42 · Bottom 25%
Fair Value upside−72% · Bottom 25%
Profitability
Return on equity (TTM)11% · Above median
Return on assets4% · Above median
Net margin (TTM)9% · Above median
Operating margin (TTM)15% · Top 25%
Growth and dividend
Revenue growth40% · Top 25%
Dividend yield (TTM)0.7% · Below median
Balance sheet
Debt / equity0.18× · Above median
Valuation Multiplesvs Electrical Equipment & Parts median · lower = cheaper
P/E (TTM)79.8× · Priciest 25%
P/B3.91× · Pricier than median
P/S (TTM)3.16× · Pricier than median
P/FCF8.3× · Pricier than median
EV/EBITDA22.2× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 58
PAST (return on equity)46· sector 26
HEALTH (low debt)91· sector 97
DIVIDEND (yield)14· sector 22
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Song Chuan Precision Co., Ltd. (7788) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of 80.45 TWD versus a price of 289.50 TWD, about −72% upside (overvalued).
What is the fair value of 7788?
Our model-based fair value for Song Chuan Precision Co., Ltd. is 80.45 TWD (as of Sep 23, 2026), built from audited fundamentals. The current price: 289.50 TWD.
What is the quality score of 7788?
Song Chuan Precision Co., Ltd. has a Quality Score of 42/100. 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 price target for Song Chuan Precision Co., Ltd. (7788)?
Our model-based price target is the fair value of 80.45 TWD (as of Sep 23, 2026) from 26 valuation models. Cautious scenario 52.58 TWD, optimistic scenario 104.58 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Song Chuan Precision Co., Ltd. stock forecast for 2026?
Our models put fair value at 80.45 TWD, about −72% upside versus a price of 289.50 TWD (overvalued). Cautious scenario 52.58 TWD, optimistic scenario 104.58 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Song Chuan Precision Co., Ltd. (7788)?
Song Chuan Precision Co., Ltd. reported trailing-twelve-month revenue of about 6.7B TWD (latest available figure, as of Sep 23, 2026).
Does Song Chuan Precision Co., Ltd. pay a dividend?
Song Chuan Precision Co., Ltd. currently shows a dividend yield of about 0.69% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Song Chuan Precision Co., Ltd. (7788)?
For today's price to be fair in a discounted-cash-flow model, Song Chuan Precision Co., Ltd. would have to grow free cash flow by +63.0 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 4 years revenue grew +5.4 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of 7788 use?
Our models discount Song Chuan Precision Co., Ltd. at 9.8 %: a base by market capitalisation (large), country premium for Taiwan. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Song Chuan Precision Co., Ltd. that is +63.0 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Song Chuan Precision Co., Ltd. (7788) delivered so far?
Over the past 4 years revenue at Song Chuan Precision Co., Ltd. grew +5.4 % a year. The price currently implies +63.0 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Song Chuan Precision Co., Ltd. (7788) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Song Chuan Precision Co., Ltd. (+63.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Song Chuan Precision Co., Ltd. (7788)?
The free-cash-flow yield on the price is 0.38 %: that much free cash flow Song Chuan Precision Co., Ltd. produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Song Chuan Precision Co., Ltd. (7788)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Song Chuan Precision Co., Ltd. it is 80.45 TWD per share (as of Sep 23, 2026), against a price of 289.50 TWD. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Song Chuan Precision Co., Ltd. stock overvalued or undervalued in 2026?
As of Sep 23, 2026, 7788 trades above its calculated fair value: price 289.50 TWD, fair value 80.45 TWD, a gap of about −72% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 7788?
No. The price is what the market pays today (289.50 TWD); the fair value is what the company's own numbers justify (80.45 TWD). For Song Chuan Precision Co., Ltd. the two are 209.05 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Song Chuan Precision Co., Ltd. worth?
The market values Song Chuan Precision Co., Ltd. at about 23.1B TWD (market capitalisation, as of Sep 23, 2026). Per share that is 289.50 TWD; our models calculate a fair value of 80.45 TWD per share.
What do the bullish and bearish scenarios say about 7788?
Our models span a range for Song Chuan Precision Co., Ltd.: cautious scenario 52.58 TWD, base 80.45 TWD, optimistic 104.58 TWD per share (as of Sep 23, 2026, price 289.50 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 7788?
Song Chuan Precision Co., Ltd. trades at a price-to-earnings ratio of 79.8 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 80.45 TWD is built from several models across several years. Other multiples: P/B 3.9, P/S 3.2, EV/EBITDA 22.2.
How solid is the balance sheet of Song Chuan Precision Co., Ltd. (7788)?
Balance-sheet figures for Song Chuan Precision Co., Ltd. (as of Sep 23, 2026): return on equity 11.4%, debt of 0.18 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is 7788 from its 52-week high?
Song Chuan Precision Co., Ltd. trades at 289.50 TWD, about 14% below its 52-week high of 335.00 TWD and 192% above the low of 99.13 TWD (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of 80.45 TWD is for.
Which stocks are comparable to Song Chuan Precision Co., Ltd.?
From the same area (Industrials) we also value Contemporary Amperex Technology Co, ABB Ltd, Delta Electronics (Thailand) Public Company, Vertiv Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Song Chuan Precision Co., Ltd. stock attractive at the current price?
The data as of Sep 23, 2026: price 289.50 TWD, calculated fair value 80.45 TWD (−72%), Quality Score 42/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 7788 calculated?
We run Song Chuan Precision Co., Ltd. through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 80.45 TWD, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Song Chuan Precision Co., Ltd. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Song Chuan Precision Co., Ltd. (7788)?
The closing price on Sep 24, 2026 was 289.50 TWD. Our model-based fair value is 80.45 TWD, about −72% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Song Chuan Precision Co., Ltd. right now?
The price sits above even our optimistic bull case (104.58 TWD). The favourable scenario is already priced in. Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range (52.58 TWD to 104.58 TWD) leaves room in how you read the outcome.
Key figures of Song Chuan Precision Co., Ltd.
How large is the market capitalisation of Song Chuan Precision Co., Ltd. (7788)?
The market capitalisation of Song Chuan Precision Co., Ltd. is 23.1B TWD (≈ $725M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Song Chuan Precision Co., Ltd. (7788)?
The price-to-sales ratio of Song Chuan Precision Co., Ltd. is 3.34 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Song Chuan Precision Co., Ltd. (7788)?
Earnings per share at Song Chuan Precision Co., Ltd. are 3.63 TWD (price ÷ EPS = P/E 79.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Song Chuan Precision Co., Ltd. (7788)?
The dividend yield of Song Chuan Precision Co., Ltd. is 0.7% (payout 55.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Song Chuan Precision Co., Ltd. (7788)?
The net margin of Song Chuan Precision Co., Ltd. is 4.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Song Chuan Precision Co., Ltd. (7788)?
The return on equity (ROE) of Song Chuan Precision Co., Ltd. is 5.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Song Chuan Precision Co., Ltd. (7788)?
On an EBIT basis the return on assets of Song Chuan Precision Co., Ltd. is 4.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Song Chuan Precision Co., Ltd. (7788)?
The operating margin of Song Chuan Precision Co., Ltd. is 9.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Song Chuan Precision Co., Ltd. (7788)?
Revenue at Song Chuan Precision Co., Ltd. is growing +14.4% versus a year earlier (3y avg +1.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Song Chuan Precision Co., Ltd. (7788)?
Earnings per share at Song Chuan Precision Co., Ltd. are growing +11.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Song Chuan Precision Co., Ltd. (7788) carry?
The net debt of Song Chuan Precision Co., Ltd. is 274M TWD (fiscal year 2025, ≈ 3.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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