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Eternal Materials Co Ltd (1717) Fair Value & Analysis

Basic Materials · TW · Market cap 73.0B TWD (≈ $2.3B) · ISIN TW0001717007

What is Eternal Materials Co Ltd really worth?

EM Eternal Materials Co Ltd 1717 · TW
Price76.10 TWD
Fair Value18.20 TWD
Upside−76.1%
Quality52/100

A solid business, but trading 318% above our fair value of 18.20 TWD.

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Strengths

Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +1.2 %/yr)
!Thin margins · 4.3% net margin
!Trails peers (1/14)
!Narrow moat 33/100
!Weak on future: 9 out of 100
!Weak on past: 24 out of 100
!Weak on dividend: 26 out of 100

For context

·1.31% dividend yield
Evidence: High Range 12.80 TWD – 23.39 TWD

Fair value as of: Aug 13, 2026

From 22 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from 18.29 TWD to 18.20 TWD (−0.5%) since Jul 23, 2026. Share price +14.4% 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 (23.39 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (12.80 TWD to 23.39 TWD) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

85.40 TWD 10.09 TWD Fair Value 18.20 TWD Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 10.09 TWD – 85.40 TWD · fair‑value band 12.80 TWD – 23.39 TWD · the 76.10 TWD price screens above the 18.20 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Eternal Materials Co Ltd (1717) currently trades at 76.10 TWD, while our model-based Fair Value estimate is 18.20 TWD, implying the stock looks roughly 318.1% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Basic Materials sector. Bull case: the Multiples group reads highest at a median of 23.96 TWD per share, and 0 of the 22 models we run sit above the 76.10 TWD price. Bear case: the Growth DCF group reads lowest at 4.04 TWD, and 22 of the 22 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Eternal Materials Co Ltd generated revenue of 40.9B TWD at a net margin of 4.3%. Revenue grew 1.8% year over year. It earns a return on equity of 6.1%. Net debt stands at 16.1B TWD. Fundamentals as of Aug 13, 2026

Our scenario range runs from 12.80 TWD (bear case) to 23.39 TWD (bull case); at 76.10 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 15% below its 52-week high and 225% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −58% fair-value upside, at −76%, 1717 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 0.2775 TWD per share, which is 1.5 % 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 18.57 TWD 19.14 TWD 19.39 TWD 76
FCF DCF 1.41 TWD 3.83 TWD 8.47 TWD 73
5Y EBITDA Exit 10.82 TWD 20.58 TWD 33.50 TWD 73
All 22 models by family
DCF Models
FCF DCF 1.41 TWD 3.83 TWD 8.47 TWD 73
Owner Earnings 1.67 TWD 4.19 TWD 9.01 TWD 70
5Y Revenue Exit 4.73 TWD 10.21 TWD 18.21 TWD 69
5Y EBITDA Exit 10.82 TWD 20.58 TWD 33.50 TWD 73
5Y P/E Exit 6.85 TWD 13.82 TWD 22.10 TWD 68
10Y Revenue Exit 3.03 TWD 7.64 TWD 13.01 TWD 64
10Y EBITDA Exit 7.14 TWD 14.49 TWD 23.06 TWD 66
10Y P/E Exit 4.69 TWD 10.02 TWD 15.57 TWD 62
Earnings-Based
Graham-Dodd 9.58 TWD 16.34 TWD 19.95 TWD 67
EPV 2.84 TWD 4.21 TWD 5.41 TWD 73
Multiples
P/E Multiple 17.97 TWD 23.96 TWD 29.95 TWD 63
P/S Multiple 17.97 TWD 23.96 TWD 29.95 TWD 58
P/B Multiple 17.97 TWD 23.96 TWD 29.95 TWD 55
EV/EBIT 9.72 TWD 14.76 TWD 19.80 TWD 65
EV/EBITDA 19.93 TWD 28.38 TWD 36.82 TWD 67
EV/Revenue 7.70 TWD 13.32 TWD 18.94 TWD 52
Asset-Based
NCAV (Graham) 11.78 TWD 15.78 TWD 23.56 TWD 54
Growth DCF
Growth DCF 1.68 TWD 4.04 TWD 8.21 TWD 73
Rev-Margin DCF 4.73 TWD 10.30 TWD 17.15 TWD 70
Economic Profit
Residual Income best evidence 18.57 TWD 19.14 TWD 19.39 TWD 76
ROIC Compounder 2.84 TWD 4.21 TWD 5.41 TWD 71
Growth Earnings
Growth-Adj P/E 12.80 TWD 18.29 TWD 23.77 TWD 67

Widest divergence: Multiples (23.96 TWD) versus Growth DCF (4.04 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 54.0
P/S ratio 2.20 P/E × margin
EPS (TTM) 1.41 TWD price ÷ EPS = P/E 54.0
Dividend yield 1.3% payout 70.9%
Net margin 4.1% FY2025
Return on equity 6.1% TTM
More key figures
Profitability
Return on assets (EBIT) 4.4% avg 5y
Operating margin 5.6% TTM
Growth
Revenue (TTM) 40.9B TWD TTM
Revenue growth (YoY) +1.8% 3y avg −6.0%
EPS growth (YoY) +21.5%
Balance sheet & cash flow
Free cash flow 791M TWD FY2025
Net debt 16.1B TWD FY2025 · ≈ 20.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 51 · Market factors (momentum, volatility) 60

Profitability 32
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 25
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 85
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

Eternal Materials Co., Ltd. manufactures and sells resin, high performance, electronic materials, and other related products.

Full company description

Eternal Materials Co., Ltd. manufactures and sells resin, high performance, electronic materials, and other related products. The company offers resin materials, including acrylic for adhesives and overprinting, polyester polyol, polyurethane, optoelectronic materials, alkyd, solvent-based acrylic coating, water-based acrylic coating, amino, fluorocarbon, polyester, other coatings, unsaturated polyester, vinyl ester, fire retardant, epoxy system, structural adhesive, and polyester for polyurethane foam. It also provides UV monomers, oligomers, special coatings, silicone powder, additives, and 3D printing material; and electronic materials, comprising printed circuit board material-dry film photoresist, material-dry film solder mask, material-UV ink, material-dry film photosensitive polyimide, material-paper phenolic copper clad and material-composite epoxy copper clad laminate, flat panel display and touch panel material-dry film photoresist, flat panel display and touch panel material-liquid polyimide, vacuum laminator, and toll coating service. In addition, the company offers hydrophilic film, biomaterials-enzymes for biochemical diagnosis, biomaterials-enzymes for molecular diagnosis, biomaterials-recombinant proteins, biomaterials-antibodies, in vitro diagnostic (IVD) rapid test strips, liquid molding compound for WLP, lithium battery materials, green process-less CTP plate photoresist, and thermoplastic composites. The company was formerly known as Eternal Chemical Co., Ltd. and changed its name to Eternal Materials Co., Ltd. in 2014. Eternal Materials Co., Ltd. was incorporated in 1964 and is headquartered in Kaohsiung, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Eternal Materials Co Ltd reported revenue of 40.7B TWD in FY2025 versus 50.5B TWD in FY2021, a compound −5.2%/yr. Reported net income was 1.7B TWD in FY2025, compounding −17.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
40.7B TWD
Latest YoY
−7.9%
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.
−6.0%
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.
+1.2%
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.
+4.5%
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.
−6.8% (−8.1 + 1.3)
Revenue −5.2%/yr
FY21 50.5B TWD
FY22 49.0B TWD
FY23 42.5B TWD
FY24 44.2B TWD
FY25 40.7B TWD
Net income −17.4%/yr
FY21 3.5B TWD
FY22 2.6B TWD
FY23 1.5B TWD
FY24 1.8B TWD
FY25 1.7B TWD
Character of growth · EPS growth decomposed (2014-2025) −4.8 % p.a.
Revenue per share +0.9 %

of which total revenue +0.9 % · buybacks/dilution +0.0 %

EBIT margin −6.0 %
Tax rate −1.7 %
Residual (interest, one-offs) +2.0 %

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).

1717 screens 318% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Eternal Materials Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1717

Peer Group

Specialty Chemicals · 695 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 52 · Below median
Fair Value upside −76% · Bottom 25%
Return on equity (TTM) 6% · Above median
Return on assets 2% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 1.3% · Below median
Debt / equity 0.45× · Higher than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 54.0× · Pricier than 75% of peers
P/B 2.64× · Pricier than median
P/S (TTM) 1.79× · Pricier than median
P/FCF 2.9× · Pricier than median
EV/EBITDA 19.9× · Pricier than median

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 0
FUTURE9 · sector 20
PAST24 · sector 23
HEALTH78 · sector 95
DIVIDEND26 · sector 28

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $485.35 $222.03 −54%
The Sherwin-Williams Company SHW $344.86 $143.38 −58%
Ecolab Inc ECL $286.75 $96.18 −66%
Air Products and Chemicals, Inc APD $308.09 $122.14 −60%
Givaudan SA GIVN CHF 3,282 CHF 1,498 −54%
Wanhua Chemical Group 600309 ¥77.66 ¥68.03 −12%
500820 500820 ₹2,757 ₹557.43 −80%
Novozymes A/S NSISB kr 456.40 kr 169.99 −63%
Asian Paints Limited ASIANPAINT ₹2,630 ₹696.23 −74%
PPG Industries, Inc PPG $114.22 $71.31 −38%

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Frequently asked questions

Is Eternal Materials Co Ltd (1717) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 18.20 TWD versus a price of 76.10 TWD, about −76% upside (overvalued).
What is the fair value of 1717?
Our model-based fair value for Eternal Materials Co Ltd is 18.20 TWD (as of Aug 13, 2026), built from audited fundamentals. The current price: 76.10 TWD.
What is the quality score of 1717?
Eternal Materials Co Ltd has a Quality Score of 52/100. 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 Eternal Materials Co Ltd (1717)?
Eternal Materials Co Ltd reported trailing-twelve-month revenue of about 40.9B TWD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1717?
The net profit margin of Eternal Materials Co Ltd is about 4.3%, meaning it keeps roughly 4.3% of revenue as net income. Based on the latest reported figures.
Does Eternal Materials Co Ltd pay a dividend?
Eternal Materials Co Ltd currently shows a dividend yield of about 1.31% relative to its recent price (as of Aug 13, 2026).
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