Deswell Industries Inc (DSWL) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Deswell Industries Inc $5.42, price $3.14, upside +72.6%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Watch Deswell Industries Inc for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card.Watch for freePro now: $1 first month
69 individual criteria per stock, every one traceableSee the method →
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
60‑month range $1.84 – $4.21 · fair‑value band $4.08 – $6.68 · the $3.14 price screens below the $5.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
Follow Deswell Industries in your weekly email
Every Wednesday you see whether Deswell Industries is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally.
Show more
Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally. The company operates through two segments, Plastic Injection Molding and Electronic Products Assembling. It produces various plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components for electronic entertainment products, power tools, accessories, and outdoor equipment; cases for flashlights, telephones, printers, scanners; parts for industrial components, and indoor control switches, as well as parts for audio equipment, and cases and key tops for personal organizers and remote controls; double injection caps; parts for medical products comprising apparatus for blood tests; laser key caps; automobile components; and plastic components of automatic robot. The company also provides electronic products that consist of audio equipment, including digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment, and speaker enclosures; consumer audio products, such as multi-channel receivers-amplifiers, wired and wireless audio streaming products, and headphones; printed circuit board assemblies; and medical products. The company was founded in 1987 and is based in Macau.
Stock analysis
Deswell Industries Inc (DSWL) currently trades at $3.14, while our model-based Fair Value estimate is $5.42, implying the stock looks roughly 42.1% undervalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of $13.99 per share, and 20 of the 22 models we run sit above the $3.14 price.
Bear case: the Earnings-Based group reads lowest at $2.43, and 2 of the 22 models stay below the price. Evidence for this calculation is high.
Scenario range: $4.08 (bear) to $6.68 (bull), the price of $3.14 sits below 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 59/100 (solid quality), in the Technology sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
Deswell Industries Inc reported revenue of $61.3M in FY2026 versus $85.5M in FY2022, a compound −8.0%/yr. Reported net income was $10.6M in FY2026, compounding +6.6%/yr from FY2022.
Key figures
Market cap $59.1M · P/E ratio 4.0 · P/S ratio 0.70 · EPS (TTM) $0.7800 · Dividend yield 6.4% · Net margin 17.3% · Return on equity 12.1% · Return on assets (EBIT) 2.6%.
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 21% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −66% fair-value upside, at 73%, DSWL screens cheaper than that median.
Fair Value models
Bear $4.08Fair Value $5.42Bull $6.68
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 2026 figures (about 6 months old). Earnings retained since then ($0.2813 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 is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−9.3%
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.
−7.5%
Revenue growth 5 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.
−1.1%
Start year 2021 (pandemic). Over 10 years: +3.2% a year
Revenue growth 30 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.
+2.3%
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years) ⓘ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.
+1.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−4.5%
Dividend (yield on the price)6.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6% vs 23%, slowing
Profit margin 2021 to 2026 ⓘ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.5% → 4%
Start year 2021 (pandemic)
Growth Forecast
Little optimism in the price
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).
less than -40 %
Yearly growth needed for the next five years to justify today's price.
Price, fair value, quality and upside side by side.
Free, no sign-up
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.Electronic Components · 654 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside+73% · Top 25%
Profitability
Return on equity (TTM)12% · Top 25%
Return on assets2% · Below median
Net margin (TTM)19% · Top 25%
Operating margin (TTM)7% · Above median
Growth and dividend
Revenue growth−6% · Below median
Dividend yield (TTM)6.4% · Top 25%
Valuation Multiplesvs Electronic Components median · lower = cheaper
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 Deswell Industries Inc (DSWL) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $5.42 versus a price of $3.14, about +73% upside (undervalued).
What is the fair value of DSWL?
Our model-based fair value for Deswell Industries Inc is $5.42 (as of Sep 23, 2026), built from audited fundamentals. The current price: $3.14.
What is the quality score of DSWL?
Deswell Industries Inc has a Quality Score of 59/100. 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 Deswell Industries Inc (DSWL)?
Our model-based price target is the fair value of $5.42 (as of Sep 23, 2026) from 22 valuation models. Cautious scenario $4.08, optimistic scenario $6.68. It is a calculation from audited fundamentals, not an analyst target.
What is the Deswell Industries Inc stock forecast for 2026?
Our models put fair value at $5.42, about +73% upside versus a price of $3.14 (undervalued). Cautious scenario $4.08, optimistic scenario $6.68. The calculation is refreshed regularly with new filings.
What is the revenue of Deswell Industries Inc (DSWL)?
Deswell Industries Inc reported trailing-twelve-month revenue of about $65.7M (latest available figure, as of Sep 23, 2026).
Does Deswell Industries Inc pay a dividend?
Deswell Industries Inc currently shows a dividend yield of about 6.37% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Deswell Industries Inc (DSWL)?
For today's price to be fair in a discounted-cash-flow model, Deswell Industries Inc would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 11.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -1.1 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of DSWL use?
Our models discount Deswell Industries Inc at 11.5 %: a base by market capitalisation (micro), damped by beta 0.62, country premium for USA. 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 Deswell Industries Inc that is less than minus 40 % per year a year over ten years, using the same discount rate (11.5 %) and the same formula as our fair value.
How much growth has Deswell Industries Inc (DSWL) delivered so far?
Over the past 5 years revenue at Deswell Industries Inc grew -1.1 % a year. The price currently implies less than minus 40 % 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 Deswell Industries Inc (DSWL) growing?
The median revenue growth in the sector is +8.2 % a year. That is the yardstick for the growth priced into Deswell Industries Inc (less than minus 40 % 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 Deswell Industries Inc (DSWL)?
The free-cash-flow yield on the price is 9.43 %: that much free cash flow Deswell Industries Inc produces per unit of market value. When it exceeds the discount rate of our models (11.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Deswell Industries Inc (DSWL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Deswell Industries Inc it is $5.42 per share (as of Sep 23, 2026), against a price of $3.14. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Deswell Industries Inc stock overvalued or undervalued in 2026?
As of Sep 23, 2026, DSWL trades below its calculated fair value: price $3.14, fair value $5.42, a gap of about +73% (undervalued). 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 DSWL?
No. The price is what the market pays today ($3.14); the fair value is what the company's own numbers justify ($5.42). For Deswell Industries Inc the two are $2.28 per share apart. That gap is exactly why we show both numbers side by side.
How much is Deswell Industries Inc worth?
The market values Deswell Industries Inc at about $59.1M (market capitalisation, as of Sep 23, 2026). Per share that is $3.14; our models calculate a fair value of $5.42 per share.
What do the bullish and bearish scenarios say about DSWL?
Our models span a range for Deswell Industries Inc: cautious scenario $4.08, base $5.42, optimistic $6.68 per share (as of Sep 23, 2026, price $3.14). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DSWL?
Deswell Industries Inc trades at a price-to-earnings ratio of 4.0 (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 $5.42 is built from several models across several years. Other multiples: PEG 0.9, P/B 0.5, P/S 0.9, EV/EBITDA 6.7.
What is the PEG ratio of DSWL?
The PEG ratio of Deswell Industries Inc is 0.89 (P/E divided by earnings growth, as of Sep 23, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Deswell Industries Inc (DSWL)?
Balance-sheet figures for Deswell Industries Inc (as of Sep 23, 2026): return on equity 12.1%. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is DSWL from its 52-week high?
Deswell Industries Inc trades at $3.14, about 21% below its 52-week high of $3.98 and 8% above the low of $2.91 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $5.42 is for.
Which stocks are comparable to Deswell Industries Inc?
From the same area (Technology) we also value Amphenol Corporation, Delta Electronics, Inc, Corning Incorporated, Hon Hai Precision Industry Co, 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 Deswell Industries Inc stock attractive at the current price?
The data as of Sep 23, 2026: price $3.14, calculated fair value $5.42 (+73%), Quality Score 59/100, from 22 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 DSWL calculated?
We run Deswell Industries Inc through 22 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 $5.42, 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 13.0 % above its aggregate fair value. Deswell Industries Inc currently trades 73 % below its own fair value, and the market average says nothing about that. 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 Deswell Industries Inc (DSWL)?
The closing price on Sep 23, 2026 was $3.14. Our model-based fair value is $5.42, about +73% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Deswell Industries Inc right now?
The price is below even our cautious bear case ($4.08). The market is more pessimistic than our downside scenario. Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Deswell Industries Inc
How large is the market capitalisation of Deswell Industries Inc (DSWL)?
The market capitalisation of Deswell Industries Inc is $59.1M. 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 Deswell Industries Inc (DSWL)?
The price-to-sales ratio of Deswell Industries Inc is 0.70 (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 Deswell Industries Inc (DSWL)?
Earnings per share at Deswell Industries Inc are $0.7800 (price ÷ EPS = P/E 4.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Deswell Industries Inc (DSWL)?
The dividend yield of Deswell Industries Inc is 6.4% (payout 25.6%). 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 Deswell Industries Inc (DSWL)?
The net margin of Deswell Industries Inc is 17.3% (fiscal year 2026). 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 Deswell Industries Inc (DSWL)?
The return on equity (ROE) of Deswell Industries Inc is 12.1% (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 Deswell Industries Inc (DSWL)?
On an EBIT basis the return on assets of Deswell Industries Inc is 2.6% (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 Deswell Industries Inc (DSWL)?
The operating margin of Deswell Industries Inc is 7.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Deswell Industries Inc (DSWL)?
Revenue at Deswell Industries Inc is growing −5.5% versus a year earlier (3y avg −7.5%). 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 Deswell Industries Inc (DSWL)?
Earnings per share at Deswell Industries Inc are growing +21.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Deswell Industries Inc (DSWL) hold?
Deswell Industries Inc holds more cash than debt, $23.1M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
Free · no account needed
Watch Deswell Industries Inc in the live analysis
One click puts Deswell Industries Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
Broad data
Sep 23, 2026