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Hon Hai Precision Industry Co Ltd (2317) Fair Value & Analysis

Technology · TW · Market cap 3.3T TWD (≈ $105B) · ISIN TW0002317005

What is Hon Hai Precision Industry Co Ltd really worth?

HH Hon Hai Precision Industry Co Ltd 2317 · TW
Price256.00 TWD
Fair Value358.24 TWD
Upside+39.9%
Quality57/100

A solid business, trading 29% below our fair value of 358.24 TWD.

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Strengths

Low debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Mixed Growth (revenue 5y +8.6 %/yr)
!Thin margins · 2.3% net margin
!Narrow moat 42/100

For context

·2.81% dividend yield
Evidence: High Range 204.57 TWD – 473.32 TWD

Fair value as of: Sep 3, 2026

From 25 valuation models · updated yesterday

Share price −1.0% over the past month.

What runs behind every stock

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

What matters now

  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (204.57 TWD to 473.32 TWD) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

300.06 TWD 78.49 TWD Fair Value 358.24 TWD Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range 78.49 TWD – 300.06 TWD · fair‑value band 204.57 TWD – 473.32 TWD · the 256.00 TWD price screens below the 358.24 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 3, 2026.

Full chart & analysis →

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Analysis

Hon Hai Precision Industry Co Ltd (2317) currently trades at 256.00 TWD, while our model-based Fair Value estimate is 358.24 TWD, implying the stock looks roughly 28.5% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of 310.24 TWD per share, and 12 of the 25 models we run sit above the 256.00 TWD price. Bear case: the Asset-Based group reads lowest at 84.83 TWD, and 13 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Hon Hai Precision Industry Co Ltd generated revenue of 8.6T TWD at a net margin of 2.3%. Revenue grew 28.9% year over year. It earns a return on equity of 11.8%. Net debt stands at 270B TWD. Fundamentals as of Sep 3, 2026

Our scenario range runs from 204.57 TWD (bear case) to 473.32 TWD (bull case); at 256.00 TWD, the current price sits within 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 18% below its 52-week high and 75% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −62% fair-value upside, at 40%, 2317 screens cheaper 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 4.20 TWD per share, which is 1.2 % 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
FCF DCF 122.91 TWD 182.12 TWD 288.13 TWD 79
Growth DCF 122.86 TWD 178.89 TWD 278.73 TWD 78
Owner Earnings 158.53 TWD 246.97 TWD 405.31 TWD 75
All 25 models by family
DCF Models
FCF DCF 122.91 TWD 182.12 TWD 288.13 TWD 79
Owner Earnings 158.53 TWD 246.97 TWD 405.31 TWD 75
5Y Revenue Exit 187.68 TWD 310.24 TWD 478.73 TWD 71
5Y EBITDA Exit 291.18 TWD 520.89 TWD 811.53 TWD 73
5Y P/E Exit 253.33 TWD 443.86 TWD 662.26 TWD 70
10Y Revenue Exit 160.16 TWD 271.30 TWD 444.76 TWD 65
10Y EBITDA Exit 235.92 TWD 428.08 TWD 726.31 TWD 66
10Y P/E Exit 210.39 TWD 370.74 TWD 600.03 TWD 62
Earnings-Based
Graham-Dodd 91.96 TWD 407.27 TWD 557.69 TWD 64
Lynch FV 105.55 TWD 150.79 TWD 196.02 TWD 61
PEG = 1.0 105.55 TWD 150.79 TWD 196.02 TWD 57
EPV 179.87 TWD 202.66 TWD 222.91 TWD 74
Dividend Discount
Gordon GGM 55.35 TWD 120.84 TWD 203.32 TWD 65
DDM Multi-Stage 55.35 TWD 98.99 TWD 125.94 TWD 66
Multiples
P/E Multiple 283.99 TWD 378.66 TWD 473.32 TWD 63
P/S Multiple 172.42 TWD 229.90 TWD 287.37 TWD 58
P/B Multiple 172.42 TWD 229.90 TWD 287.37 TWD 55
EV/EBIT 383.98 TWD 495.06 TWD 606.14 TWD 66
EV/EBITDA 394.39 TWD 508.94 TWD 623.49 TWD 67
EV/Revenue 219.21 TWD 291.41 TWD 363.61 TWD 54
Asset-Based
NCAV (Graham) 63.30 TWD 84.83 TWD 126.61 TWD 54
Growth DCF
Growth DCF 122.86 TWD 178.89 TWD 278.73 TWD 78
Economic Profit
Residual Income 115.30 TWD 132.03 TWD 237.32 TWD 73
ROIC Compounder 197.32 TWD 252.71 TWD 328.07 TWD 72
Growth Earnings
Growth-Adj P/E 205.66 TWD 293.80 TWD 381.95 TWD 67

Widest divergence: DCF Models (310.24 TWD) versus Asset-Based (84.83 TWD). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 19.1
P/S ratio 0.45 P/E × margin
EPS (TTM) 13.40 TWD price ÷ EPS = P/E 19.1
Dividend yield 2.8% payout 53.7%
Net margin 2.3% FY2025
Return on equity 11.8% TTM
More key figures
Profitability
Return on assets (EBIT) 4.4% avg 5y
Operating margin 3.6% TTM
Growth
Revenue (TTM) 8.6T TWD TTM
Revenue growth (YoY) +28.9% 3y avg +6.9%
EPS growth (YoY) +18.1%
Balance sheet & cash flow
Free cash flow 75.5B TWD FY2025
Net debt 270B TWD FY2025 · ≈ 3.6 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 55 · Market factors (momentum, volatility) 56

Profitability 44
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 24
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 82
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

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services. The company offers consumer electronics, including smartphones, feature phones, wearable devices, televisions, game consoles, set-top boxes, and audio systems; cloud and networking products comprising routers, servers, edge computing, data centers, and satellite communications …

Full company description

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services. The company offers consumer electronics, including smartphones, feature phones, wearable devices, televisions, game consoles, set-top boxes, and audio systems; cloud and networking products comprising routers, servers, edge computing, data centers, and satellite communications and other related equipment; electronic computing equipment, such as desktop computers, laptops, tablets, multi-function devices and printers; and connectors, precision optical components, lenses, electronic components, semiconductor products, and automotive electronic parts. It operates in the United States, Singapore, Ireland, Mainland China, Japan, India, Taiwan, Vietnam, Mexico, and internationally. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hon Hai Precision Industry Co Ltd reported revenue of 8.1T TWD in FY2025 versus 6.0T TWD in FY2021, a compound +7.8%/yr. Reported net income was 189B TWD in FY2025, compounding +8.0%/yr from FY2021.

Growth Quality 63/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
8.1T TWD
Latest YoY
+18.1%
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.
+6.9%
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.
+8.6%
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.
+19.3%
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.
+13.1% (10.3 + 2.8)
Revenue +7.8%/yr
FY21 6.0T TWD
FY22 6.6T TWD
FY23 6.2T TWD
FY24 6.9T TWD
FY25 8.1T TWD
Net income +8.0%/yr
FY21 139B TWD
FY22 141B TWD
FY23 142B TWD
FY24 153B TWD
FY25 189B TWD
Character of growth · EPS growth decomposed (2014-2025) +1.2 % p.a.
Revenue per share +5.3 %

of which total revenue +5.5 % · buybacks/dilution −0.2 %

EBIT margin −2.4 %
Tax rate +0.0 %
Residual (interest, one-offs) −1.5 %

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).

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Cite: Fair Value Calculator (2026). "Hon Hai Precision Industry Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2317

Peer Group

Electronic Components · 638 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 57 · Above median
Fair Value upside +40% · Top 25%
Return on equity (TTM) 12% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 29% · Top 25%
Dividend yield (TTM) 2.8% · Top 25%
Debt / equity 0.17× · Higher than median

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 19.1× · Cheaper than 75% of peers
P/B 1.89× · Cheaper than median
P/S (TTM) 0.39× · Cheaper than 75% of peers
P/FCF 1.4× · Cheaper than median
EV/EBITDA 7.0× · Cheaper than 75% of peers
PEG 1.04× · Cheaper 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
VALUE87 · sector 0
FUTURE100 · sector 40
PAST47 · sector 25
HEALTH91 · sector 95
DIVIDEND56 · sector 24

Insider activity: 45/100

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
Amphenol Corporation APH $157.74 $97.19 −38%
Corning Incorporated GLW CHF 134.64 CHF 35.18 −74%
Delta Electronics, Inc 2308 1,750 TWD 602.37 TWD −66%
Luxshare Precision Industry Co 002475 ¥56.06 ¥38.44 −31%
Samsung Electro-Mechanics Co 009150 1,503,000 KRW 172,954 KRW −88%
Suzhou Dongshan Precision Manufacturing Co 002384 ¥202.11 ¥21.19 −90%
TE Connectivity plc TEL $202.66 $144.42 −29%
Shengyi Technology Co 600183 ¥132.80 ¥36.30 −73%
Flex Ltd FLEX $124.53 $48.10 −61%
Celestica Inc CLS $298.70 $113.54 −62%

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Frequently asked questions

Is Hon Hai Precision Industry Co Ltd (2317) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of 358.24 TWD versus a price of 256.00 TWD, about +40% upside (undervalued).
What is the fair value of 2317?
Our model-based fair value for Hon Hai Precision Industry Co Ltd is 358.24 TWD (as of Sep 3, 2026), built from audited fundamentals. The current price: 256.00 TWD.
What is the quality score of 2317?
Hon Hai Precision Industry Co Ltd has a Quality Score of 57/100. 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 Hon Hai Precision Industry Co Ltd (2317)?
Hon Hai Precision Industry Co Ltd reported trailing-twelve-month revenue of about 8.6T TWD (latest available figure, as of Sep 3, 2026).
What is the net profit margin of 2317?
The net profit margin of Hon Hai Precision Industry Co Ltd is about 2.3%, meaning it keeps roughly 2.3% of revenue as net income. Based on the latest reported figures.
Does Hon Hai Precision Industry Co Ltd pay a dividend?
Hon Hai Precision Industry Co Ltd currently shows a dividend yield of about 2.81% relative to its recent price (as of Sep 3, 2026).
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