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Deswell Industries, Inc (DSWL) Fair Value & Analysis

Technology · US · Market cap $59.1M

DI Deswell Industries, Inc logo Deswell Industries, Inc DSWL · US
Price$3.28
Fair Value$6.00
Upside+82.9%
Quality59/100
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Weak Growth
Solidly profitable · 19.0% net margin
generates free cash flow
6.04% dividend yield
Ranks above peers (11/14)
Moderate moat 50/100
Evidence: High Range $5.58 – $6.79 Share as image

Fair value as of: Jul 15, 2026

From 22 valuation models · updated 27 days ago

Share price −3.5% over the past month.

A solid business, screening 83% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($5.58). 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.
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Price vs Fair Value (5 years)

$4.21 $1.84 Fair Value $6.00 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $1.84 – $4.21 · fair‑value band $5.58 – $6.79 · the $3.28 price screens below the $6.00 fair value. Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Deswell Industries, Inc (DSWL) currently trades at $3.28, while our model-based Fair Value estimate is $6.00, implying the stock looks roughly 82.9% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Technology 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, Deswell Industries, Inc generated revenue of $65.7M at a net margin of 19.0%. Revenue declined 5.5% year over year. It earns a return on equity of 12.1%. The balance sheet holds a net cash position of $23.1M. Fundamentals as of Jul 15, 2026

Our scenario range runs from $5.58 (bear case) to $6.79 (bull case); at $3.28, 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 25% below its 52-week high and 46% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at 83%, DSWL 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
Residual Income $5.38 $5.71 $6.19 76
Growth DCF $3.64 $4.16 $4.93 72
Growth-Adj P/E $7.08 $10.11 $13.14 68
All 22 models by family
DCF Models
FCF DCF $3.58 $4.14 $5.03 38
Owner Earnings $6.72 $8.09 $10.29 31
5Y Revenue Exit $3.06 $3.56 $4.28 39
5Y EBITDA Exit $3.47 $4.27 $5.32 41
5Y P/E Exit $6.97 $10.31 $14.28 38
10Y Revenue Exit $3.28 $3.63 $3.99 36
10Y EBITDA Exit $3.51 $4.00 $4.51 37
10Y P/E Exit $5.33 $7.19 $8.99 35
Earnings-Based
Graham-Dodd $4.53 $5.54 $6.24 54
EPV $2.32 $2.43 $2.51 59
Multiples
P/E Multiple $10.00 $13.34 $16.67 63
P/S Multiple $7.22 $9.62 $12.03 58
P/B Multiple $8.50 $11.34 $14.17 55
EV/EBIT $3.28 $3.89 $4.50 53
EV/EBITDA $3.68 $4.42 $5.17 54
EV/Revenue $2.68 $3.21 $3.74 43
Asset-Based
NCAV (Graham) $3.43 $4.60 $6.86 50
Growth DCF
Growth DCF $3.64 $4.16 $4.93 72
Rev-Margin DCF $3.06 $3.62 $4.33 67
Economic Profit
Residual Income $5.38 $5.71 $6.19 76
ROIC Compounder $2.32 $2.43 $2.51 67
Growth Earnings
Growth-Adj P/E $7.08 $10.11 $13.14 68

Widest divergence: Growth Earnings ($10.11) versus Earnings-Based ($2.43). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) $65.7M
Revenue growth (YoY) -5.5%
Net margin 19.0%
Return on equity 12.1%
Free cash flow $4.7M FY2026
P/E ratio 4.8
More key figures
Operating margin 7.5%
EPS (TTM) $0.7800
Dividend yield 6.0%
EPS growth (YoY) +21.1%
Net cash $23.1M FY2026

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 58 · Market factors (momentum, volatility) 50

Profitability 44
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 84
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

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.

Full company description

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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$61.3M
Latest YoY
−9.3%
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.
−7.5%
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.
−1.1%
Avg. growth/yr (30Y) 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.
+2.3%
Revenue −8.0%/yr
FY22 $85.5M
FY23 $77.5M
FY24 $69.4M
FY25 $67.6M
FY26 $61.3M
Net income +6.6%/yr
FY22 $8.2M
FY23 $2.1M
FY24 $7.7M
FY25 $11.1M
FY26 $10.6M

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Cite: Fair Value Calculator (2026). "Deswell Industries, Inc Fair Value". https://www.fairvalue-calculator.com/stock/DSWL

Peer Group

Electronic Components · 627 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 59 · Above median
Fair Value upside +83% · Top 25%
Return on equity (TTM) 12% · Top 25%
Return on assets 2% · Below median
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 7% · Above median
Revenue growth -6% · Below median
Dividend yield (TTM) 6.0% · Top 25%

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 4.8× · Cheaper than 75% of peers
P/B 0.54× · Cheaper than 75% of peers
P/S (TTM) 0.90× · Cheaper than median
P/FCF 12.5× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than 75% of peers
PEG 0.89× · 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 0 · sector 32
PAST 48 · sector 24
HEALTH 0 · sector 95
DIVIDEND 100 · sector 25

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is Deswell Industries, Inc (DSWL) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $6.00 versus a price of $3.28, about +83% (undervalued).
What is the fair value of DSWL?
Our model-based fair value for Deswell Industries, Inc is $6.00 (as of Jul 15, 2026), built from audited fundamentals. The current price is $3.28.
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 revenue of Deswell Industries, Inc (DSWL)?
Deswell Industries, Inc reported trailing-twelve-month revenue of about $65.7M (latest available figure, as of Jul 15, 2026).
What is the net profit margin of DSWL?
The net profit margin of Deswell Industries, Inc is about 19.0%, meaning it keeps roughly 19.0% of revenue as net income. Based on the latest reported figures.
Does Deswell Industries, Inc pay a dividend?
Deswell Industries, Inc currently shows a dividend yield of about 6.04% relative to its recent price (as of Jul 15, 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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