2 models fit Fabrinet Ordinary Shares and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Bronze46
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionFabrinet Ordinary Shares (FN)
Fair value (2 models)
$357
ACCE price target
$420
Rating
Fairly valued
Horizon
12 months
Fair value published on 24 Oct 2026, 16:06 CEST; previously $392 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 26 Sept 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 16:06 CEST.
Price used: $315 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
11.8% below
+13.4% to fair value
ACCE score
58
out of 100
Analysts
78% buy
9 covering
P/E
24.3x
forward 12.8x
1-year return
-24.1%
Dividend yield
0.00%
Fabrinet Ordinary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Fabrinet is a contract manufacturer that builds optical communications modules and assemblies for hyperscale data center and telecom customers, mainly under outsourced agreements with the big optical component makers and networking OEMs. Its moat is process know-how in precision optical packaging and high-volume assembly, which is hard to replicate quickly and gives it a sticky position in the supply chain for 400G and 800G transceivers. The near-term driver is the buildout of AI cluster networking, where optical interconnects are a growing share of data center capex. Revenue growth of 44.6% is strong, and the stock trades at 19.6x forward earnings against 32.8x trailing, implying the market expects earnings to climb sharply from here. Thin margins (12.0% gross, 10.2% operating) mean the thesis depends on volume and execution rather than pricing power, so the deeper look should focus on customer concentration and whether margins hold as volumes scale.