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Redwood Group (8426) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 1.0B TWD

RG Redwood Group 8426 · TWO
Price21.25 TWD
Fair Value40.72 TWD
Upside+91.6%
Quality54/100
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Mixed Growth
Thin margins · 3.8% net margin
Low debt · generates free cash flow
3.96% dividend yield
Ranks above peers (12/14)
Narrow moat 33/100
Evidence: High Range 30.54 TWD – 50.90 TWD Share as image

Fair value as of: Jul 23, 2026

From 26 valuation models · updated 18 days ago

Share price +6.5% over the past month.

A solid business, screening 92% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (30.54 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

91.50 TWD 13.20 TWD Fair Value 40.72 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 13.20 TWD – 91.50 TWD · fair‑value band 30.54 TWD – 50.90 TWD · the 21.25 TWD price screens below the 40.72 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Redwood Group (8426) currently trades at 21.25 TWD, while our model-based Fair Value estimate is 40.72 TWD, implying the stock looks roughly 91.6% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical 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: high), always confirm before acting.

Over the trailing twelve months, Redwood Group generated revenue of 2.8B TWD at a net margin of 3.8%. Revenue grew 9.4% year over year. It earns a return on equity of 8.2%. Net debt stands at 5.1M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 30.54 TWD (bear case) to 50.90 TWD (bull case); at 21.25 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 39% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 16% fair-value upside, at 92%, 8426 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 34.25 TWD 51.16 TWD 74.42 TWD 80
Residual Income 19.74 TWD 20.65 TWD 21.08 TWD 76
Rev-Margin DCF 33.61 TWD 54.17 TWD 79.53 TWD 74
All 26 models by family
DCF Models
FCF DCF 34.46 TWD 53.04 TWD 79.91 TWD 38
Owner Earnings 22.01 TWD 33.48 TWD 50.07 TWD 31
5Y Revenue Exit 33.61 TWD 54.38 TWD 81.69 TWD 39
5Y EBITDA Exit 40.92 TWD 68.84 TWD 102.76 TWD 41
5Y P/E Exit 31.33 TWD 49.86 TWD 70.11 TWD 38
10Y Revenue Exit 32.64 TWD 51.04 TWD 77.43 TWD 36
10Y EBITDA Exit 37.88 TWD 60.50 TWD 92.92 TWD 37
10Y P/E Exit 32.16 TWD 48.08 TWD 68.92 TWD 35
Earnings-Based
Graham-Dodd 12.59 TWD 50.42 TWD 68.55 TWD 54
Lynch FV 12.54 TWD 17.92 TWD 23.29 TWD 50
PEG = 1.0 12.54 TWD 17.92 TWD 23.29 TWD 46
EPV 17.28 TWD 19.37 TWD 21.12 TWD 59
Dividend Discount
Gordon GGM 19.42 TWD 35.00 TWD 48.18 TWD 70
DDM Multi-Stage 19.42 TWD 31.97 TWD 37.39 TWD 61
Multiples
P/E Multiple 30.54 TWD 40.72 TWD 50.90 TWD 63
P/S Multiple 23.60 TWD 31.47 TWD 39.33 TWD 58
P/B Multiple 23.60 TWD 31.47 TWD 39.33 TWD 55
EV/EBIT 49.90 TWD 65.89 TWD 81.89 TWD 53
EV/EBITDA 49.73 TWD 65.67 TWD 81.61 TWD 54
EV/Revenue 34.26 TWD 48.12 TWD 61.98 TWD 43
Asset-Based
NCAV (Graham) 12.67 TWD 16.98 TWD 25.34 TWD 50
Growth DCF
Growth DCF 34.25 TWD 51.16 TWD 74.42 TWD 80
Rev-Margin DCF 33.61 TWD 54.17 TWD 79.53 TWD 74
Economic Profit
Residual Income 19.74 TWD 20.65 TWD 21.08 TWD 76
ROIC Compounder 17.28 TWD 19.37 TWD 21.12 TWD 72
Growth Earnings
Growth-Adj P/E 22.64 TWD 32.34 TWD 42.04 TWD 68

Widest divergence: Growth DCF (51.16 TWD) versus Asset-Based (16.98 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 2.8B TWD
Revenue growth (YoY) +9.4%
Net margin 3.8%
Return on equity 8.2%
Free cash flow 162M TWD FY2025
P/E ratio 11.0
More key figures
Operating margin -1.8%
EPS (TTM) 1.85 TWD
Dividend yield 4.0%
EPS growth (YoY) -44.5%
Net debt 5.1M TWD FY2025

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

Quality Score breakdown

Overall quality 54/100

Of which business quality 56 · Market factors (momentum, volatility) 34

Profitability 45
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 82
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

Redwood Group Ltd, together with its subsidiaries, engages in the decoration of boutique brand stores in Malaysia, Thailand, India, Vietnam, Japan, the United States, China, the Philippines, Australia, and France. The company also operates as a contract manufacturer of interior fittings for luxury brands.

Full company description

Redwood Group Ltd, together with its subsidiaries, engages in the decoration of boutique brand stores in Malaysia, Thailand, India, Vietnam, Japan, the United States, China, the Philippines, Australia, and France. The company also operates as a contract manufacturer of interior fittings for luxury brands. In addition, it provides carpentry, glass, metal and PVD, LED and electrical, paints and coatings, sofas and interior decoration, tree bark, acrylic, solid surface and stone processing, and packing services. The company was founded in 2000 and is based in Grand Cayman, Cayman Islands.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Redwood Group reported revenue of 2.7B TWD in FY2025 versus 1.4B TWD in FY2021, a compound +17.5%/yr. Reported net income was 93.0M TWD in FY2025, compounding +99.9%/yr from FY2021.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
2.7B TWD
Latest YoY
−5.6%
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.
+16.8%
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.
+28.3%
Avg. growth/yr (8Y) 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.
+5.4%
Revenue +17.5%/yr
FY21 1.4B TWD
FY22 1.7B TWD
FY23 2.9B TWD
FY24 2.9B TWD
FY25 2.7B TWD
Net income +99.9%/yr
FY21 5.8M TWD
FY22 32.3M TWD
FY23 329M TWD
FY24 253M TWD
FY25 93.0M TWD

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Cite: Fair Value Calculator (2026). "Redwood Group Fair Value". https://www.fairvalue-calculator.com/stock/8426

Peer Group

Furnishings, Fixtures & Appliances · 311 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 54 · Above median
Fair Value upside +92% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) -2% · Bottom 25%
Revenue growth 9% · Top 25%
Dividend yield (TTM) 4.0% · Above median
Debt / equity 0.32× · Higher than 75% of peers

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/E (TTM) 11.0× · Cheaper than 75% of peers
P/B 0.80× · Cheaper than median
P/S (TTM) 0.37× · Cheaper than median
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 3.4× · Cheaper 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 100 · sector 22
FUTURE 47 · sector 0
PAST 33 · sector 19
HEALTH 84 · sector 97
DIVIDEND 79 · sector 55

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 Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥82.71 ¥107.22 +30%
Gree Electric Appliances, Inc 000651 ¥38.25 ¥88.02 +130%
Haier Smart Home Co 600690 ¥21.46 ¥36.04 +68%
King Slide Works Co 2059 8,655 TWD 1,917 TWD -78%
Guangdong Songfa Ceramics Co 603268 ¥155.59 ¥38.95 -75%
SharkNinja, Inc SN $154.53 $89.07 -42%
Hisense Home Appliances Group 000921 ¥26.33 ¥48.03 +82%
Zhejiang Supor Co 002032 ¥43.85 ¥44.84 +2%
COWAY Co 021240 96,700 KRW 112,530 KRW +16%
Ecovacs Robotics Co 603486 ¥50.13 ¥54.11 +8%

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Frequently asked questions

Is Redwood Group (8426) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 40.72 TWD versus a price of 21.25 TWD, about +92% (undervalued).
What is the fair value of 8426?
Our model-based fair value for Redwood Group is 40.72 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 21.25 TWD.
What is the quality score of 8426?
Redwood Group has a Quality Score of 54/100. 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 Redwood Group (8426)?
Redwood Group reported trailing-twelve-month revenue of about 2.8B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 8426?
The net profit margin of Redwood Group is about 3.8%, meaning it keeps roughly 3.8% of revenue as net income. Based on the latest reported figures.
Does Redwood Group pay a dividend?
Redwood Group currently shows a dividend yield of about 3.84% 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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