Deswell Industries (FRA:DW2) EBIT: €1.84 Mil (TTM As of Sep. 2025)

What is Deswell Industries EBIT?

Deswell Industries FRA:DW2 -0.60% 62 EBIT is €1.84 Mil as of Sep. 2025. GuruFocus rates FRA:DW2 with a GF Score™ of 62/100 and a GF Value™ of €1.95 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Deswell Industries's earnings before interest and taxes (EBIT) for the six months ended in Sep. 2025 was €2.01 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2025 was €1.84 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Deswell Industries's annualized ROC % for the quarter that ended in Sep. 2025 was 14.85%. Deswell Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was 16.52%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Deswell Industries's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was -8.79%.

Deswell Industries (FRA:DW2) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Deswell Industries's annualized ROC % for the quarter that ended in Sep. 2025 is calculated as:

	ROC % (Q: Sep. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2025 )	+	Invested Capital (Q: Sep. 2025 ))	/ count )
=	4.014 * ( 1 - 2.17% )	/	( (26.87	+	26.022)	/ 2 )
=	3.9268962	/	26.446
=	14.85 %

where

	Invested Capital		(Q: Mar. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	111.192	-	14.485	-	( 69.837	-	max(0, 16.388	-	89.251	+	69.837	))
=	26.87

	Invested Capital		(Q: Sep. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	109.236	-	15.337	-	( 67.877	-	max(0, 16.917	-	89.392	+	67.877	))
=	26.022

Note: The Operating Income data used here is two times the semi-annual (Sep. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Deswell Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2025		Q: Sep. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	4.014	/	( ( (21.631 + max(2.82, 0))	+	(19.557 + max(4.598, 0)) )	/	2 )
=	4.014	/	( ( 24.451	+	24.155 )	/	2 )
=	4.014	/	24.303
=	16.52 %

where Working Capital is:

	Working Capital		(Q: Mar. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9.17	+	8.752	+	1.286)	-	(14.485	+	1.904	+	-0.00099999999999767)
=	2.82

	Working Capital		(Q: Sep. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(11.844	+	8.631	+	1.04)	-	(15.337	+	1.58	+	0)
=	4.598

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Deswell Industries's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Sep. 2025 )
	=	1.842	/	-20.965
	=	-8.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Deswell Industries EBIT Related Terms

Deswell Industries EBIT Historical Data

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The historical data trend for Deswell Industries's EBIT can be seen below:

Deswell Industries EBIT Chart

Deswell Industries Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

EBIT

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2.57

1.96

3.06

2.25

1.87

Deswell Industries Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
EBIT	Get a 7-Day Free Trial															1.13	1.32	0.90	2.01	-0.17

FRA:DW2 vs WBX, HOLO, IEHC: EBIT Comparison

For the Electronic Components subindustry, Deswell Industries's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Deswell Industries EV-to-EBIT vs Hardware Industry

For the Hardware industry and Technology sector, Deswell Industries's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Deswell Industries's EV-to-EBIT falls into.

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62GF Score

Deswell Industries Inc FRA:DW2

EBIT is just one metric. See GF Score™, valuation, warning signs, and more.

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Deswell Industries EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was €1.84 Mil.

Frequently Asked Questions Learn more about EBIT →

What does a EBIT of €1.84 Mil mean?

Deswell Industries (FRA:DW2) has a EBIT of €1.84 Mil as of Sep. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Deswell Industries.

Is Deswell Industries' EBIT too high?

Deswell Industries' current EBIT is €1.84 Mil. Overall, Deswell Industries has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Deswell Industries' EBIT compare to WBX and HOLO?

Deswell Industries' EBIT of €1.84 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good EBIT for a Hardware company?

A good EBIT depends on the Hardware industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high EBIT mean?

A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Deswell Industries. Deswell Industries's current EBIT is €1.84 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Deswell Industries stock overvalued right now?

Based on GuruFocus' analysis, Deswell Industries (FRA:DW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.95, compared to a current price of €3.30 — trading 69.2% above its estimated fair value. The current EBIT is €1.84 Mil. Deswell Industries' overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is EBIT calculated?

EBIT is calculated from a company's financial statements. For Deswell Industries (FRA:DW2), the current EBIT is €1.84 Mil as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Deswell Industries (FRA:DW2) Overvalued in 2026?

Based on GuruFocus' analysis, Deswell Industries stock appears to be overvalued. The current stock price of €3.30 is trading 69.2% above its estimated GF Value™ of €1.95. GuruFocus considers Deswell Industries to be Significantly Overvalued.

Key valuation signals for FRA:DW2:

EBIT: €1.84 Mil
GF Value™: €1.95 vs. price of €3.30 (69.2% above fair value)
GF Score™: 62/100 with 5 warning signs

No single metric tells the full story. See the FRA:DW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Deswell Industries Business Description

Industry Technology Hardware

Comparable Companies WBX HOLO IEHC ELTK DAIO NEON REFR LINK WETH GAUZ TPE:2308 APH GLW TPE:2317 TSE:6981 XKRX:009150 SZSE:002475 TEL TPE:2383 SZSE:002384

Other Exchanges DSWL:USA

Address 10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC

Website https://www.deswell.com

Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.

62GF Score

Get the complete analysis for FRA:DW2

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.30

Price

€1.95

GF Value

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