Independent equity research
Is Fabrinet (FN) a Buy, Hold or Sell?
Fabrinet — our independent, AI-built valuation and rating, in brief.
SELL (reduce)
12-mo fair value
$285.00
To fair value
−31%
By · report dated 2026-08-18 · fair value derived independently of the market price.
The thesis, in brief
Fabrinet turned $473m of FY26 net income into $4m of free cash flow and has permanently lost its Thai tax shield to the OECD 15% minimum tax; we expect FY27 free cash flow below $150m, and see fair value near $285 even on our above-consensus $6.2bn revenue forecast
How we value it
We value Fabrinet using 10-yr owner-FCF DCF (WACC 12.8%, g 2.5%), cross-checked on 19x FY27E fully-taxed EPS. The 12-month fair value is set from that intrinsic estimate first, then compared to the market to read the upside or downside — never anchored to the current price.
What the full report covers
- Business & moat + industry cycle
- Earnings quality & normalized EPS
- Returns on capital (ROIC vs WACC)
- Balance-sheet safety
- Two independent valuations (DCF + multiples)
- Bear / base / bull fair values
- Earnings-call analysis
- Insider activity & positioning
- Technicals (RSI / ADX)
- A falsifiable thesis
Read the full Fabrinet report
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