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TWOWAY Communications, Inc (8045) Fair Value & Analysis

Technology · TW · Market cap 6.1B TWD

TC TWOWAY Communications, Inc 8045 · TW
Price54.80 TWD
Fair Value15.34 TWD
Upside-72.0%
Quality36/100
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Expensive Growth
Thin margins · 5.0% net margin
Low debt · negative free cash flow
1.60% dividend yield
Trails peers (4/13)
Narrow moat 29/100
Evidence: Medium Range 13.39 TWD – 17.50 TWD Share as image

Fair value as of: Jul 23, 2026

From 13 valuation models · updated 18 days ago

Share price −6.2% over the past month.

Below-average quality, and screening another 72% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (17.50 TWD). The favourable scenario is already priced in.
  • Weak quality (36/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

170.99 TWD 8.64 TWD Fair Value 15.34 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 8.64 TWD – 170.99 TWD · fair‑value band 13.39 TWD – 17.50 TWD · the 54.80 TWD price screens above the 15.34 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

TWOWAY Communications, Inc (8045) currently trades at 54.80 TWD, while our model-based Fair Value estimate is 15.34 TWD, implying the stock looks roughly 72.0% overvalued today. The Quality Score stands at 36/100 (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: medium).

Over the trailing twelve months, TWOWAY Communications, Inc generated revenue of 1.3B TWD at a net margin of 5.0%. Revenue grew 42.7% year over year. It earns a return on equity of 3.4%. Net debt stands at 68.4M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 13.39 TWD (bear case) to 17.50 TWD (bull case); at 54.80 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 60% 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 -72%, 8045 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 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
Residual Income 15.10 TWD 14.56 TWD 12.06 TWD 76
ROIC Compounder 7.66 TWD 8.55 TWD 9.32 TWD 72
Growth-Adj P/E 9.42 TWD 13.46 TWD 17.50 TWD 68
All 13 models by family
DCF Models
Owner Earnings 11.40 TWD 14.82 TWD 20.97 TWD 31
Earnings-Based
Graham-Dodd 4.36 TWD 5.33 TWD 6.00 TWD 54
EPV 7.66 TWD 8.55 TWD 9.32 TWD 59
Multiples
P/E Multiple 13.47 TWD 17.96 TWD 22.45 TWD 63
P/S Multiple 8.18 TWD 10.90 TWD 13.63 TWD 58
P/B Multiple 8.18 TWD 10.90 TWD 13.63 TWD 55
EV/EBIT 16.15 TWD 20.85 TWD 25.55 TWD 53
EV/EBITDA 20.97 TWD 27.28 TWD 33.59 TWD 54
EV/Revenue 9.17 TWD 12.23 TWD 15.28 TWD 43
Asset-Based
NCAV (Graham) 10.59 TWD 14.19 TWD 21.18 TWD 50
Economic Profit
Residual Income 15.10 TWD 14.56 TWD 12.06 TWD 76
ROIC Compounder 7.66 TWD 8.55 TWD 9.32 TWD 72
Growth Earnings
Growth-Adj P/E 9.42 TWD 13.46 TWD 17.50 TWD 68

Widest divergence: DCF Models (14.82 TWD) versus Earnings-Based (5.33 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.3B TWD
Revenue growth (YoY) +42.7%
Net margin 5.0%
Return on equity 3.4%
Free cash flow −231M TWD FY2025
P/E ratio 99.7
More key figures
Operating margin 3.2%
EPS (TTM) 0.6400 TWD
Dividend yield 1.6%
EPS growth (YoY) +89.9%
Net debt 68.4M TWD FY2022

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

Quality Score breakdown

Overall quality 36/100

Of which business quality 38 · Market factors (momentum, volatility) 22

Profitability 29
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 45
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

TWOWAY Communications, Inc. engages in the research and development, manufacturing, and sale of indoor and outdoor RF, and optical transmission equipment in Taiwan, the United States, rest of Asia, Europe, and internationally. It offers broadband amplifiers, optical nodes, and head-end optronics for the cable television and telecommunications industries.

Full company description

TWOWAY Communications, Inc. engages in the research and development, manufacturing, and sale of indoor and outdoor RF, and optical transmission equipment in Taiwan, the United States, rest of Asia, Europe, and internationally. It offers broadband amplifiers, optical nodes, and head-end optronics for the cable television and telecommunications industries. The company also head-end optical transmission equipment, fiber optic node workstations, RF amplifiers, fiber optic amplifiers, FTTX PON network transmission equipment, fiber optic passive components, and AIoT smart networking solutions. TWOWAY Communications, Inc. was founded in 1992 and is headquartered in New Taipei City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

TWOWAY Communications, Inc reported revenue of 1.2B TWD in FY2025 versus 1.2B TWD in FY2021, a compound +0.5%/yr. Reported net income was 61.0M TWD in FY2025, compounding +6.5%/yr from FY2021.

Growth Quality 32/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.2B TWD
Latest YoY
−31.1%
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.
+5.5%
Revenue +0.5%/yr
FY21 1.2B TWD
FY22 1.0B TWD
FY23 2.3B TWD
FY24 1.7B TWD
FY25 1.2B TWD
Net income +6.5%/yr
FY21 47.4M TWD
FY22 62.3M TWD
FY23 408M TWD
FY24 202M TWD
FY25 61.0M TWD

8045 screens 72% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "TWOWAY Communications, Inc Fair Value". https://www.fairvalue-calculator.com/stock/8045

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 36 · Bottom 25%
Fair Value upside −72% · Below median
Return on equity (TTM) 3% · Below median
Return on assets 2% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 3% · Below median
Revenue growth 43% · Top 25%
Dividend yield (TTM) 1.6% · Above median
Debt / equity 0.08× · Higher than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 99.7× · Pricier than 75% of peers
P/B 3.01× · Pricier than median
P/S (TTM) 4.56× · Pricier than 75% of peers
EV/EBITDA 45.6× · 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 100 · sector 30
PAST 13 · sector 15
HEALTH 96 · sector 98
DIVIDEND 32 · 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 23, 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 TWOWAY Communications, Inc (8045) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 15.34 TWD versus a price of 54.80 TWD, about −72% (overvalued).
What is the fair value of 8045?
Our model-based fair value for TWOWAY Communications, Inc is 15.34 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 54.80 TWD.
What is the quality score of 8045?
TWOWAY Communications, Inc has a Quality Score of 36/100. 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 TWOWAY Communications, Inc (8045)?
TWOWAY Communications, Inc reported trailing-twelve-month revenue of about 1.3B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 8045?
The net profit margin of TWOWAY Communications, Inc is about 5.0%, meaning it keeps roughly 5.0% of revenue as net income. Based on the latest reported figures.
Does TWOWAY Communications, Inc pay a dividend?
TWOWAY Communications, Inc currently shows a dividend yield of about 1.62% relative to its recent price (as of Jul 23, 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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