Renesas Electronics Corp (RNECY) fair value: what the stock is really worth
As of Oct 22, 2026: fair value (intrinsic value) of Renesas Electronics Corp stock $15.34, price $9.11, upside +68.4%, quality 48 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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 Oct 22, 2026.
How to read this chart
60‑month range $3.81 – $15.76 · fair‑value band $10.80 – $19.89 · the $9.11 price screens below the $15.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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Renesas Electronics Corporation engages in the design, research, development, manufacturing, sale, and service of semiconductors in Japan, China, rest of Asia, Europe, North America, and internationally.
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The company operates through Automotive Business and Industrial/Infrastructure/IoT Business segments.
It offers microcontrollers and microprocessors; amplifiers, audio and video, data converters, power line communication, and switches and multiplexer products; custom ASICS and processor IP solutions; automotive products; and specific clocks, clock distribution and generation, jitter attenuators with frequency translation, and crystal oscillators.
The company also provides buffers, AS interface, data communication ICs, haptic drivers, logic level signal translators, memory interface products, optical interconnect, photocouplers, physical layer products, power line communications, transceivers, telecom interface products, USB products, and VME; and bus switches, embedded host bridges, FIFO products, memory interface products, multi-port memory, non-volatile memory, SRAMs, and standard logic.
In addition, it offers power discrete products, converters, battery management ICs, power modules, FET drivers, LED drivers, linear regulators, motor drivers, PMICs, multi-phase power, power supply support, power devices, solid state lightning, and USB-C power; programmable logic products; and inductive position sensors, optical sensors, sensor signal conditioners, and automotive sensors.
Further, the company provides space and harsh environment products, including Hi-Rel analog, data converters, digital, interface, power discrete, power management, and RF; and wireless connectivity products comprising Bluetooth Low Energy, DECT, NFC, sub-GHz/Wi-SUN transceivers, Wi-Fi MCUs, Wi-Fi networking, and wireless audio.
Renesas Electronics Corporation was incorporated in 2002 and is headquartered in Tokyo, Japan.
Stock analysis
Renesas Electronics Corp (RNECY) currently trades at $9.11, while our model-based Fair Value estimate is $15.34, implying the stock looks roughly 40.6% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $8.65 per share, and 5 of the 13 models we run sit above the $9.11 price.
Bear case: the Earnings-Based group reads lowest at $2.70, and 8 of the 13 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $10.80 (bear) to $19.89 (bull), the price of $9.11 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 48/100 (below-average quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Renesas Electronics Corp ADR reported revenue of ¥1.4T in FY2025 versus ¥994B in FY2021, a compound +8.6%/yr. Reported net income was −¥54.3B in FY2025.
Key figures
Market cap $33.8B Large · P/E ratio 15.2 · P/S ratio 0.02 · EPS (TTM) $0.6000 · Dividend yield 0.9% · Net margin −3.9% · Return on equity 14.0% · Return on assets (EBIT) 9.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 54 out of 100 (medium confidence).
What moves the price
The share trades about 42% below its 52-week high and 63% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −10% fair-value upside, at 68%, RNECY screens cheaper than that median.
Fair Value models
Bear$10.80Fair Value $15.34Bull$19.89
Price $9.11 · Upside +68.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.4866 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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 growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+2.7%
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.
−2.6%
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.
+14.1%
Start year 2020 (pandemic). Over 10 years: +7.2% a year
Revenue growth 21 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.
+3.2%
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Profit margin (trend) ⓘ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.
9.1% (2020) → 17.7% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
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).
+7.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+10.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +4.8% a year for the price and +8.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Positive cash flows offer limited support, yet negative net income, weak returns and high debt provide scant evidence of a moat in the competitive semiconductor sector.
Main risk: Failure to displace mature silicon solutions at scale could restrict broad adoption of its GaN devices and limit revenue expansion.
Renesas is extending its GaN power devices into low-voltage applications such as AI data centers and robotics with new 100V FETs that cut switching losses and raise power density. These parts keep silicon-compatible footprints to ease design-in, yet they still face the test of displacing mature silicon solutions at scale. Our models see the shares as undervalued. Will the efficiency edge translate into broad adoption or stay confined to early pilots?
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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.Semiconductors · 350 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score48 · Below median
Fair Value upside+68.4% · Top 25%
Profitability
Return on equity (12 months)14.0% · Above median
Return on assets−1.3% · Below median
Net margin (12 months)23.0% · Top 25%
Operating margin (12 months)23.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)28.5% · Above median
Dividend yield (12 months)0.9% · Above median
Balance sheet
Debt / equity0.39× · Highest 25%
Valuation Multiplesvs Semiconductors median · lower = cheaper
P/E (12 months)15.2× · Cheapest 25%
P/B2.17× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
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 Renesas Electronics Corp (RNECY) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of $15.34 versus a price of $9.11, about +68% upside (undervalued).
What is the fair value of RNECY?
Our model-based fair value for Renesas Electronics Corp ADR is $15.34 (as of Oct 22, 2026), built from audited fundamentals. The current price: $9.11.
What is the quality score of RNECY?
Renesas Electronics Corp ADR has a Quality Score of 48/100. 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 Renesas Electronics Corp (RNECY)?
Our model-based price target is the fair value of $15.34 (as of Oct 22, 2026) from 13 valuation models. Cautious scenario $10.80, optimistic scenario $19.89. It is a calculation from audited fundamentals, not an analyst target.
What is the Renesas Electronics Corp ADR stock forecast for 2026?
Our models put fair value at $15.34, about +68% upside versus a price of $9.11 (undervalued). Cautious scenario $10.80, optimistic scenario $19.89. The calculation is refreshed regularly with new filings.
What is the revenue of Renesas Electronics Corp (RNECY)?
Renesas Electronics Corp ADR reported trailing-twelve-month revenue of about ¥1.5T (latest available figure, as of Oct 22, 2026).
Does Renesas Electronics Corp ADR pay a dividend?
Renesas Electronics Corp ADR currently shows a dividend yield of 0.92% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Renesas Electronics Corp (RNECY)?
For today's price to be fair in a discounted-cash-flow model, Renesas Electronics Corp ADR would have to grow free cash flow by +7.0 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.1 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of RNECY use?
Our models discount Renesas Electronics Corp ADR at 9.9 %: a base by market capitalisation (large), damped by beta 1.30, 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 Renesas Electronics Corp ADR that is +7.0 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Renesas Electronics Corp (RNECY) delivered so far?
Over the past 5 years revenue at Renesas Electronics Corp ADR grew +14.1 % a year. The price currently implies +7.0 % 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 Renesas Electronics Corp (RNECY) growing?
The median revenue growth in the sector is +10.8 % a year. That is the yardstick for the growth priced into Renesas Electronics Corp ADR (+7.0 % 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 Renesas Electronics Corp (RNECY)?
The free-cash-flow yield on the price is 6.89 %: that much free cash flow Renesas Electronics Corp ADR produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Renesas Electronics Corp (RNECY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Renesas Electronics Corp ADR it is $15.34 per share (as of Oct 22, 2026), against a price of $9.11. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Renesas Electronics Corp ADR stock overvalued or undervalued in 2026?
As of Oct 22, 2026, RNECY trades below its calculated fair value: price $9.11, fair value $15.34, a gap of about +68% (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 RNECY?
No. The price is what the market pays today ($9.11); the fair value is what the company's own numbers justify ($15.34). For Renesas Electronics Corp ADR the two are $6.23 per share apart. That gap is exactly why we show both numbers side by side.
How much is Renesas Electronics Corp ADR worth?
The market values Renesas Electronics Corp ADR at about $33.8B (market capitalisation, as of Oct 22, 2026). Per share that is $9.11; our models calculate a fair value of $15.34 per share.
What do the bullish and bearish scenarios say about RNECY?
Our models span a range for Renesas Electronics Corp ADR: cautious scenario $10.80, base $15.34, optimistic $19.89 per share (as of Oct 22, 2026, price $9.11). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RNECY?
Renesas Electronics Corp ADR trades at a price-to-earnings ratio of 15.2 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $15.34 is built from several models across several years. Other multiples: PEG 1.6, P/B 2.2, P/S 3.6, EV/EBITDA 13.3.
What is the PEG ratio of RNECY?
The PEG ratio of Renesas Electronics Corp ADR is 1.59 (P/E divided by earnings growth, as of Oct 22, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Renesas Electronics Corp (RNECY)?
Balance-sheet figures for Renesas Electronics Corp ADR (as of Oct 22, 2026): return on equity 14.0%, debt of 0.39 per unit of equity. They feed the Quality Score of 48/100, which measures business quality independently of the share price.
How far is RNECY from its 52-week high?
Renesas Electronics Corp ADR trades at $9.11, about 42% below its 52-week high of $15.76 and 63% above the low of $5.58 (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of $15.34 is for.
Which stocks are comparable to Renesas Electronics Corp ADR?
From the same area (Technology) we also value NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company, Broadcom Inc, Micron Technology, Inc, 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 Renesas Electronics Corp ADR stock attractive at the current price?
The data as of Oct 22, 2026: price $9.11, calculated fair value $15.34 (+68%), Quality Score 48/100, from 13 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 RNECY calculated?
We run Renesas Electronics Corp ADR through 13 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 $15.34, 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 13.2 % above its aggregate fair value. Renesas Electronics Corp ADR currently trades 41 % 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 Renesas Electronics Corp (RNECY)?
The closing price on Oct 22, 2026 was $9.11. Our model-based fair value is $15.34, about +68% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Renesas Electronics Corp ADR right now?
The price is below even our cautious bear case ($10.80). The market is more pessimistic than our downside scenario. Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($10.80 to $19.89) leaves room in how you read the outcome.
Where does the earnings growth of Renesas Electronics Corp (RNECY) come from?
Earnings per share at Renesas Electronics Corp ADR grew +13.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.4 %, EBIT margin +5.0 %, tax rate −1.5 %, residual (interest, one-offs) +2.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Renesas Electronics Corp ADR
How large is the market capitalisation of Renesas Electronics Corp (RNECY)?
The market capitalisation of Renesas Electronics Corp ADR is $33.8B. 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 Renesas Electronics Corp (RNECY)?
The price-to-sales ratio of Renesas Electronics Corp ADR is 0.02 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Renesas Electronics Corp (RNECY)?
Earnings per share at Renesas Electronics Corp ADR are $0.6000 (price ÷ EPS = P/E 15.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Renesas Electronics Corp (RNECY)?
The dividend yield of Renesas Electronics Corp ADR is 0.9% (payout 14.0%). 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 Renesas Electronics Corp (RNECY)?
The net margin of Renesas Electronics Corp ADR is −3.9% (fiscal year 2025). 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 Renesas Electronics Corp (RNECY)?
The return on equity (ROE) of Renesas Electronics Corp ADR is 14.0% (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 Renesas Electronics Corp (RNECY)?
On an EBIT basis the return on assets of Renesas Electronics Corp ADR is 9.1% (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 Renesas Electronics Corp (RNECY)?
The operating margin of Renesas Electronics Corp ADR is 23.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Renesas Electronics Corp (RNECY)?
Revenue at Renesas Electronics Corp ADR is growing +28.5% versus a year earlier (3y avg −2.6%). 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 Renesas Electronics Corp (RNECY)?
Earnings per share at Renesas Electronics Corp ADR are growing +159% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Renesas Electronics Corp (RNECY) carry?
The net debt of Renesas Electronics Corp ADR is ¥911B (fiscal year 2025, ≈ 2.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Oct 22, 2026