Hon Hai (Foxconn) (2317.TW)
Technology · TWSE · Taiwan
Fundamentals
Valuation and ratings
Hon Hai (Foxconn) trades at NT$239.00, which is 100% below the NT$477.71 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 43 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Hon Hai (Foxconn)
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.
2317.TW passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Hon Hai (Foxconn) (2317.TW) undervalued?
Against our discounted cash flow estimate of NT$477.71, 2317.TW at NT$239.00 is 100% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 2317.TW's P/E ratio?
2317.TW trades at 17.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.