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E&R Engineering Corporation (8027) Fair Value & Analysis

Industrials · TW · Market cap 22.3B TWD

ER E&R Engineering Corporation 8027 · TWO
Price172.00 TWD
Fair Value320.87 TWD
Upside+86.6%
Quality46/100
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Weak Growth
Loss-making · -3.2% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/11)
Narrow moat 19/100
Evidence: Low Range 217.26 TWD – 424.80 TWD Share as image

Fair value as of: Jul 23, 2026

From 4 valuation models · updated 17 days ago

Fair value updated Jul 23, 2026, revised from 318.10 TWD to 320.87 TWD (+0.9%) since Jul 12, 2026. Share price −21.8% over the past month.

Below-average quality, screening 87% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (217.26 TWD). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (217.26 TWD to 424.80 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

293.00 TWD 42.05 TWD Fair Value 320.87 TWD Mar 2021 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 42.05 TWD – 293.00 TWD · fair‑value band 217.26 TWD – 424.80 TWD · the 172.00 TWD price screens below the 320.87 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

E&R Engineering Corporation (8027) currently trades at 172.00 TWD, while our model-based Fair Value estimate is 320.87 TWD, implying the stock looks roughly 86.6% undervalued today. The Quality Score stands at 46/100 (below-average 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: low), always confirm before acting.

Over the trailing twelve months, E&R Engineering Corporation generated revenue of 1.9B TWD at a net margin of -3.2%. Revenue grew 21.4% year over year. It earns a return on equity of -2.4%. Net debt stands at 311M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 217.26 TWD (bear case) to 424.80 TWD (bull case); at 172.00 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 42% below its 52-week high and 124% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 87%, 8027 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 BearBaseBull Evidence
Highest evidence
Gordon GGM 4.28 TWD 7.80 TWD 12.46 TWD 70
DDM Multi-Stage 4.28 TWD 6.43 TWD 8.78 TWD 61
EV/EBITDA 8.94 TWD 12.14 TWD 15.35 TWD 54
All 4 models by family
Dividend Discount
Gordon GGM 4.28 TWD 7.80 TWD 12.46 TWD 70
DDM Multi-Stage 4.28 TWD 6.43 TWD 8.78 TWD 61
Multiples
EV/EBITDA 8.94 TWD 12.14 TWD 15.35 TWD 54
Asset-Based
NCAV (Graham) 12.38 TWD 16.59 TWD 24.76 TWD 50

Widest divergence: Asset-Based (16.59 TWD) versus Dividend Discount (6.43 TWD). Highest evidence: Gordon GGM (70).

Key figures & financial health

Revenue (TTM) 1.9B TWD
Revenue growth (YoY) +21.4%
Net margin -3.2%
Return on equity -2.4%
Free cash flow −201M TWD FY2025
Operating margin -17.9%
More key figures
EPS (TTM) -0.9300 TWD
EPS growth (YoY) -70.8%
Net debt 311M TWD FY2025

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 46 · Market factors (momentum, volatility) 68

Profitability 14
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 12
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 82
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 85
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

E&R Engineering Corporation engages in the planning, designing, manufacturing, installation, and selling of automatic machines, related components, computer software, and pollution controlling equipment.

Full company description

E&R Engineering Corporation engages in the planning, designing, manufacturing, installation, and selling of automatic machines, related components, computer software, and pollution controlling equipment. The company provides automation machines for semiconductor, light emitting diode (LED), passive component, material, and medical industries in Taiwan, Hong Kong, Mainland China, Southeast Asia, the United States, Europe, and internationally. The company offers laser solutions, including wafer and package marking; and micromaching, such as laser drilling, cutting, scribing, and grooving solution. It also provides plasma technology products comprising wafer and panel forms, and L/F substrates; flexible printed circuit equipment that consists of RTR, STS, lamination, punch, plating, and open cover machines; embossed carrier tape, cover tape, and E&R tape and reel products; and workshop and laser process development services. E&R Engineering Corporation was incorporated in 1994 and is based in Kaohsiung, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

E&R Engineering Corporation reported revenue of 1.8B TWD in FY2025 versus 2.5B TWD in FY2021, a compound −8.2%/yr. Reported net income was −97.8M TWD in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.8B TWD
Latest YoY
+10.0%
Avg. growth/yr (3Y)
−17.5%
Avg. growth/yr (5Y)
−2.4%
Avg. growth/yr (8Y)
+3.0%
Revenue −8.2%/yr
FY21 2.5B TWD
FY22 3.2B TWD
FY23 1.5B TWD
FY24 1.6B TWD
FY25 1.8B TWD
Net income
FY21 244M TWD
FY22 391M TWD
FY23 30.9M TWD
FY24 −51.1M TWD
FY25 −97.8M TWD

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Cite: Fair Value Calculator (2026). "E&R Engineering Corporation Fair Value". https://www.fairvalue-calculator.com/stock/8027

Peer Group

Specialty Industrial Machinery · 809 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 46 · Below median
Fair Value upside +87% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -3% · Bottom 25%
Operating margin (TTM) -18% · Bottom 25%
Revenue growth 21% · Top 25%
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/B 0.26× · Cheaper than 75% of peers
P/S (TTM) 0.37× · Cheaper than 75% of peers
EV/EBITDA 10.3× · Cheaper than median

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 0
FUTURE 100 · sector 23
PAST 0 · sector 28
HEALTH 89 · sector 96
DIVIDEND 0 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

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1SIE 1SIE €273.20 €91.93 -66%
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Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is E&R Engineering Corporation (8027) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 320.87 TWD versus a price of 172.00 TWD, about +87% (undervalued).
What is the fair value of 8027?
Our model-based fair value for E&R Engineering Corporation is 320.87 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 172.00 TWD.
What is the quality score of 8027?
E&R Engineering Corporation has a Quality Score of 46/100. 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 E&R Engineering Corporation (8027)?
E&R Engineering Corporation reported trailing-twelve-month revenue of about 1.9B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 8027?
The net profit margin of E&R Engineering Corporation is about -3.2%, meaning it is currently running at a net loss. 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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