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Walsin Lihwa Corp (1605) Fair Value & Analysis

Basic Materials · TW · Market cap 144B TWD (≈ $4.6B) · ISIN TW0001605004

What is Walsin Lihwa Corp really worth?

WL Walsin Lihwa Corp 1605 · TW
Price38.40 TWD
Fair Value15.07 TWD
Upside−60.8%
Quality44/100

Below-average quality, and trading another 155% above our fair value of 15.07 TWD.

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Risks

!Expensive Growth (revenue 5y +9.1 %/yr)
!Thin margins · 3.6% net margin
!Low debt · negative free cash flow
!Trails peers (2/14)
!Narrow moat 28/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 13 out of 100
!Weak on dividend: 26 out of 100

For context

·1.30% dividend yield
Evidence: Medium Range 11.30 TWD – 18.84 TWD

Fair value as of: Aug 29, 2026

From 10 valuation models · updated 6 days ago

Fair value updated Aug 29, 2026, revised from 12.20 TWD to 15.07 TWD (+23.5%) since Aug 13, 2026. Share price +10.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (18.84 TWD). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (5 years)

52.61 TWD 15.55 TWD Fair Value 15.07 TWD Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range 15.55 TWD – 52.61 TWD · fair‑value band 11.30 TWD – 18.84 TWD · the 38.40 TWD price screens above the 15.07 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

Walsin Lihwa Corp (1605) currently trades at 38.40 TWD, while our model-based Fair Value estimate is 15.07 TWD, implying the stock looks roughly 154.8% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Basic Materials sector. Bull case: the Economic Profit group reads highest at a median of 25.29 TWD per share, and 0 of the 10 models we run sit above the 38.40 TWD price. Bear case: the Dividend Discount group reads lowest at 5.85 TWD, and 10 of the 10 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Walsin Lihwa Corp generated revenue of 170B TWD at a net margin of 3.6%. Revenue declined 8.4% year over year. It earns a return on equity of 3.3%. Net debt stands at 76.6B TWD. Fundamentals as of Aug 29, 2026

Our scenario range runs from 11.30 TWD (bear case) to 18.84 TWD (bull case); at 38.40 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 17% below its 52-week high and 99% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −22% fair-value upside, at −61%, 1605 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 0.1692 TWD per share, which is 1.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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 best evidence 26.41 TWD 25.29 TWD 19.96 TWD 76
Gordon GGM 4.18 TWD 5.89 TWD 7.65 TWD 69
DDM Multi-Stage 4.18 TWD 5.85 TWD 7.80 TWD 67
All 10 models by family
Earnings-Based
Graham-Dodd 4.88 TWD 9.58 TWD 12.00 TWD 66
Dividend Discount
Gordon GGM 4.18 TWD 5.89 TWD 7.65 TWD 69
DDM Multi-Stage 4.18 TWD 5.85 TWD 7.80 TWD 67
Multiples
P/E Multiple 11.30 TWD 15.07 TWD 18.84 TWD 63
P/S Multiple 9.15 TWD 12.20 TWD 15.25 TWD 58
P/B Multiple 9.15 TWD 12.20 TWD 15.25 TWD 55
EV/EBITDA 8.87 TWD 15.25 TWD 21.64 TWD 65
Asset-Based
NCAV (Graham) 18.71 TWD 25.08 TWD 37.43 TWD 54
Economic Profit
Residual Income best evidence 26.41 TWD 25.29 TWD 19.96 TWD 76
Growth Earnings
Growth-Adj P/E 8.15 TWD 11.65 TWD 15.14 TWD 67

Widest divergence: Economic Profit (25.29 TWD) versus Dividend Discount (5.85 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 51.2
P/S ratio 0.93 P/E × margin
EPS (TTM) 0.7500 TWD price ÷ EPS = P/E 51.2
Dividend yield 1.3% payout 66.7%
Net margin 1.8% FY2025
Return on equity 3.3% TTM
More key figures
Profitability
Return on assets (EBIT) 4.0% avg 5y
Operating margin 1.3% TTM
Growth
Revenue (TTM) 170B TWD TTM
Revenue growth (YoY) −8.4% 3y avg −1.2%
EPS growth (YoY) +380%
Balance sheet & cash flow
Free cash flow −6.4B TWD FY2025
Net debt 76.6B TWD FY2025

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 42 · Market factors (momentum, volatility) 60

Profitability 21
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 33
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 86
Distance to the 52-week high (market factor)
Net Issuance 100
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Walsin Lihwa Corporation engages in the manufacture and sale of wires and cables, and stainless-steel products in Asia, the United States, Europe, and internationally. The company operates through Wires and Cables; Stainless Steel; Resource; Real Estate; and Administration and Investing segments.

Full company description

Walsin Lihwa Corporation engages in the manufacture and sale of wires and cables, and stainless-steel products in Asia, the United States, Europe, and internationally. The company operates through Wires and Cables; Stainless Steel; Resource; Real Estate; and Administration and Investing segments. It also offers copper wires and rods, power cables, communication cables, optical cables, industrial cables, steel cable and wire, and submarine cables for use in power, telecommunication, electrical engineering, information household appliance, construction, ship, heavy machinery, solar power, wind power, and electric vehicles; and copper rods, connectors, and components. In addition, the company provides stainless steel products, including billets, slabs, ingots, hot-rolled bars, cold- and hot-rolled coils, wire rods, cold-finished bars, seamless pipes and tubes, and precision foils. Further, the company engages in the production and sale of nickel pig iron and nickel matte. Further, it designs, installs, and manages solar power systems; invests in rental design and interior decoration business; and manufactures and sells flat-rolled products, and alloy materials. Additionally, the company provides mechanical, electrical, communications, and power systems; waste disposal, resource recovery, and cement products; solar power systems; and business and assets management, consulting, and advertising services. It also provides property and asset management services. The company was incorporated in 1966 and is headquartered in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Walsin Lihwa Corp reported revenue of 174B TWD in FY2025 versus 157B TWD in FY2021, a compound +2.7%/yr. Reported net income was 3.2B TWD in FY2025, compounding −31.7%/yr from FY2021.

Growth Quality 41/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
174B TWD
Latest YoY
−2.8%
Avg. revenue 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.
−1.2%
Avg. revenue 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.
+9.1%
Avg. revenue growth/yr (25Y) 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.
+6.3%
Value creation/yr (5Y, in TWD) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−11.4% (−12.7 + 1.3)
Revenue +2.7%/yr
FY21 157B TWD
FY22 180B TWD
FY23 190B TWD
FY24 179B TWD
FY25 174B TWD
Net income −31.7%/yr
FY21 14.6B TWD
FY22 19.4B TWD
FY23 5.1B TWD
FY24 2.8B TWD
FY25 3.2B TWD
Character of growth · EPS growth decomposed (2014-2025) +2.8 % p.a.
Revenue per share +1.6 %

of which total revenue +2.0 % · buybacks/dilution −0.3 %

EBIT margin −4.6 %
Tax rate +2.9 %
Residual (interest, one-offs) +2.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

1605 screens 155% overvalued. Compare with Nucor Corporation →

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Cite: Fair Value Calculator (2026). "Walsin Lihwa Corp Fair Value". https://www.fairvalue-calculator.com/stock/1605

Peer Group

Steel · 398 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 44 · Below median
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 1% · Below median
Revenue growth −8% · Below median
Dividend yield (TTM) 1.3% · Below median
Debt / equity 0.35× · Higher than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 51.2× · Pricier than 75% of peers
P/B 0.87× · Cheaper than median
P/S (TTM) 0.85× · Pricier than median
EV/EBITDA 24.9× · Pricier than 75% of peers
PEG 5.31× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 12
FUTURE0 · sector 2
PAST13 · sector 16
HEALTH82 · sector 95
DIVIDEND26 · sector 49

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

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Nucor Corporation NUE $250.50 $116.05 −54%
ArcelorMittal S.A MT €64.60 €46.04 −29%
JSW Steel Limited JSWSTEEL ₹1,296 ₹1,119 −14%
Steel Dynamics, Inc STLD $234.67 $127.14 −46%
500228 500228 ₹1,292 ₹1,079 −16%
Tata Steel Limited TATASTEEL ₹186.80 ₹145.39 −22%
Reliance, Inc RS $387.59 $217.81 −44%
Baoshan Iron & Steel Co 600019 ¥5.91 ¥8.07 +37%
POSCO Holdings PKX $63.13 $85.21 +35%
Jindal Steel & Power Limited JINDALSTEL ₹1,114 ₹429.44 −61%

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Frequently asked questions

Is Walsin Lihwa Corp (1605) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of 15.07 TWD versus a price of 38.40 TWD, about −61% upside (overvalued).
What is the fair value of 1605?
Our model-based fair value for Walsin Lihwa Corp is 15.07 TWD (as of Aug 29, 2026), built from audited fundamentals. The current price: 38.40 TWD.
What is the quality score of 1605?
Walsin Lihwa Corp has a Quality Score of 44/100. 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 Walsin Lihwa Corp (1605)?
Walsin Lihwa Corp reported trailing-twelve-month revenue of about 170B TWD (latest available figure, as of Aug 29, 2026).
What is the net profit margin of 1605?
The net profit margin of Walsin Lihwa Corp is about 3.6%, meaning it keeps roughly 3.6% of revenue as net income. Based on the latest reported figures.
Does Walsin Lihwa Corp pay a dividend?
Walsin Lihwa Corp currently shows a dividend yield of about 1.30% relative to its recent price (as of Aug 29, 2026).
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