Deswell Industries, Inc.

NasdaqGM:DSWL Stock Report

Market Cap: US$41.4m

Deswell Industries Valuation

Is DSWL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DSWL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DSWL ($2.62) is trading below our estimate of fair value ($9.79)

Significantly Below Fair Value: DSWL is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DSWL?

Key metric: As DSWL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DSWL. This is calculated by dividing DSWL's market cap by their current earnings.
What is DSWL's PE Ratio?
PE Ratio4x
EarningsUS$10.34m
Market CapUS$41.43m

Price to Earnings Ratio vs Peers

How does DSWL's PE Ratio compare to its peers?

The above table shows the PE ratio for DSWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.7x
TRSG Tungray Technologies
41.3xn/aUS$37.3m
OPTX Syntec Optics Holdings
76.6xn/aUS$33.7m
NSYS Nortech Systems
6.1xn/aUS$28.1m
SHMD SCHMID Group
2.6xn/aUS$107.9m
DSWL Deswell Industries
4xn/aUS$41.4m

Price-To-Earnings vs Peers: DSWL is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (31.7x).


Price to Earnings Ratio vs Industry

How does DSWL's PE Ratio compare vs other companies in the US Electronic Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SHMD SCHMID Group
2.6xn/aUS$107.87m
SGE Strong Global Entertainment
3.8xn/aUS$12.27m
SPEC Spectaire Holdings
0.03xn/aUS$797.53k
SMX SMX (Security Matters)
0.5xn/aUS$714.91k
No more companies available in this PE range
DSWL 4.0xIndustry Avg. 23.5xNo. of Companies9PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DSWL is good value based on its Price-To-Earnings Ratio (4x) compared to the US Electronic industry average (23.4x).


Price to Earnings Ratio vs Fair Ratio

What is DSWL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DSWL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DSWL's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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