Fabrinet

Valuation Analysis

About the Company

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's

Fabrinet Stock at a Glance

Fabrinet (FN) is currently trading at $611.01 with a market capitalization of $21.9B. The trailing P/E ratio stands at 52.36x, with a forward P/E of 35.38x. The 52-week range spans from $248.27 to $748.89; the current price is 18.4% below the yearly high. Year-over-year revenue growth stands at +39.3%. The net profit margin stands at 9.94%.

💰 Dividend

Fabrinet currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

9 analysts rate Fabrinet (FN) on consensus: None. The average price target is $749.11, implying +22.6% from the current price. Analyst price targets range from $635.00 to $850.00.

Fabrinet: The Investment Case in Detail

Fabrinet (FN) operates in the Technology — specifically Electronic Components — and is headquartered in Cayman Islands. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 39.3% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 43.67x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 35.38x is meaningfully below the trailing 52.36x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 22.6% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to market-like volatility, elevated short interest (8.1%).

Trading Data

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