Flex Ltd (FLEX) 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 -137% for FLEX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.8% (average of 3 methods) values the shares at $48.24; the price of $114.45 is 137% above that value, and 67% of that value comes from beyond year five.
Leak Score 56/100 on 10 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 | FLEX | FN |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $114.45 | $403.80 |
| Intrinsic value | $48.24 | $1164.03 |
| Margin of safety | -137% | +65% |
| Leak Score | 56/100 (10/12) | 100/100 (2/12) |
| Market cap | $42.3B | $14.5B |
| Revenue growth, 5 years | 3.0% | 19.8% |
| Operating margin | 5.6% | 10.1% |
| Net margin | 3.3% | 10.2% |
| Return on equity | 18.4% | 21.3% |
| Debt to equity | 1.08 | 0.00 |
| P/E | 44.2x | 31.0x |
| Forward P/E | 16.1x | 18.6x |
| P/B | 7.7x | 5.9x |