Celestica Inc (CLS) is overvalued and Fabrinet (FN) is undervalued.
Against our estimates of intrinsic value, FN trades at the wider discount: a margin of safety of +65%, against -93% for CLS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 13.5% (average of 3 methods) values the shares at $184.33; the price of $356.09 is 93% above that value, and 64% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $1164.03; the price of $403.80 is 65% below that value.
Leak Score 100/100 on 2 of 12 signals
| Metric | CLS | FN |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $356.09 | $403.80 |
| Intrinsic value | $184.33 | $1164.03 |
| Margin of safety | -93% | +65% |
| Leak Score | 59/100 (3/12) | 100/100 (2/12) |
| Market cap | $44.9B | $14.5B |
| Revenue growth, 5 years | 16.6% | 19.8% |
| Operating margin | 8.4% | 10.1% |
| Net margin | 7.2% | 10.2% |
| Return on equity | 52.7% | 21.3% |
| Debt to equity | 0.40 | 0.00 |
| P/E | 37.0x | 31.0x |
| Forward P/E | 18.3x | 18.6x |
| P/B | 16.5x | 5.9x |