FN Valuation

Fabrinet

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328.070

-1.73(-0.525%)1D

Overview
Forecast
Valuation
Earnings

FN Relative Valuation

FN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, FN is overvalued; if below, it's undervalued.

Historical Valuation

Fabrinet (FN) is now in the Overvalued zone, suggesting that its current forward PE ratio of 29.37 is considered Overvalued compared with the five-year average of 18.20. The fair price of Fabrinet (FN) is between 196.72 to 267.01 according to relative valuation methord. Compared to the current price of 328.07 USD , Fabrinet is Overvalued By 22.87%.

Relative Value

Fair Zone

196.72-267.01

Current Price：328.07

22.87%

Overvalued

29.37

Trailing

Forward

24.75

EV/EBITDA

Fabrinet. (FN) has a current EV/EBITDA of 24.75. The 5-year average EV/EBITDA is 13.74. The thresholds are as follows: Strongly Undervalued below 6.17, Undervalued between 6.17 and 9.95, Fairly Valued between 17.53 and 9.95, Overvalued between 17.53 and 21.31, and Strongly Overvalued above 21.31. The current Forward EV/EBITDA of 24.75 falls within the Strongly Overvalued range.

28.43

EV/EBIT

Fabrinet. (FN) has a current EV/EBIT of 28.43. The 5-year average EV/EBIT is 16.06. The thresholds are as follows: Strongly Undervalued below 7.45, Undervalued between 7.45 and 11.75, Fairly Valued between 20.37 and 11.75, Overvalued between 20.37 and 24.68, and Strongly Overvalued above 24.68. The current Forward EV/EBIT of 28.43 falls within the Strongly Overvalued range.

3.18

Fabrinet. (FN) has a current PS of 3.18. The 5-year average PS is 1.88. The thresholds are as follows: Strongly Undervalued below 0.89, Undervalued between 0.89 and 1.39, Fairly Valued between 2.37 and 1.39, Overvalued between 2.37 and 2.86, and Strongly Overvalued above 2.86. The current Forward PS of 3.18 falls within the Strongly Overvalued range.

30.75

P/OCF

Fabrinet. (FN) has a current P/OCF of 30.75. The 5-year average P/OCF is 18.18. The thresholds are as follows: Strongly Undervalued below 9.18, Undervalued between 9.18 and 13.68, Fairly Valued between 22.68 and 13.68, Overvalued between 22.68 and 27.17, and Strongly Overvalued above 27.17. The current Forward P/OCF of 30.75 falls within the Strongly Overvalued range.

37.62

P/FCF

Fabrinet. (FN) has a current P/FCF of 37.62. The 5-year average P/FCF is 21.82. The thresholds are as follows: Strongly Undervalued below 7.16, Undervalued between 7.16 and 14.49, Fairly Valued between 29.16 and 14.49, Overvalued between 29.16 and 36.49, and Strongly Overvalued above 36.49. The current Forward P/FCF of 37.62 falls within the Strongly Overvalued range.

Fabrinet (FN) has a current Price-to-Book (P/B) ratio of 6.20. Compared to its 3-year average P/B ratio of 4.04 , the current P/B ratio is approximately 53.29% higher. Relative to its 5-year average P/B ratio of 3.62, the current P/B ratio is about 71.30% higher. Fabrinet (FN) has a Forward Free Cash Flow (FCF) yield of approximately 2.31%. Compared to its 3-year average FCF yield of 3.31%, the current FCF yield is approximately -30.29% lower. Relative to its 5-year average FCF yield of 2.99% , the current FCF yield is about -22.87% lower.

6.20

P/B

Median3y

4.04

Median5y

3.62

2.31

FCF Yield

Median3y

3.31

Median5y

2.99

Competitors Valuation Multiple

The average P/S ratio for FN's competitors is 5.77, providing a benchmark for relative valuation. Fabrinet Corp (FN) exhibits a P/S ratio of 3.18, which is -44.97% above the industry average. Given its robust revenue growth of 19.17%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Skyworks Solutions Inc

MACOM Technology Solutions Holdings Inc

Lattice Semiconductor Corp

Performance Decomposition

Market capitalization of FN increased by 35.36% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 27.87 to 36.77.

The secondary factor is the Revenue Growth, contributed 19.17%to the performance.

Overall, the performance of FN in the past 1 year is driven by P/E Change. Which is more unsustainable.

19.17%

731.54M → 871.80M

Revenue Growth

-15.73%

11.06 → 9.32

Margin Expansion

31.92%

27.87 → 36.77

P/E Change

35.36%