HROEY (Hirose Electric Co) Intrinsic Value: DCF (FCF Based): $8.02 (As of Aug. 21, 2026) — 424% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HROEY Hirose Electric Co Ltd HROEY
89 GF Score
Price $16.07
GF Value $15.72
Valuation Fairly Valued
! 5 Warning Signs
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What is Hirose Electric Co Intrinsic Value: DCF (FCF Based)?

Hirose Electric Co HROEY 89 Intrinsic Value: DCF (FCF Based) is $8.02 as of Aug. 21, 2026, which is 424% above its 10-year median of 1.53. GuruFocus rates HROEY with a GF Scoreâ„¢ of 89/100 and a GF Valueâ„¢ of $15.72 (Fairly Valued). The stock has 5 warning signs investors should review. Among 208 Hardware companies, Hirose Electric Co ranks worse than 61.54% on this metric.

As of today (2026-08-21), Hirose Electric Co's intrinsic value calculated from the Discounted Cash Flow model is $8.02.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Hirose Electric Co's Predictability Rank is 1.5-Stars.

Margin of Safety (FCF Based) using Discounted Cash Flow model for Hirose Electric Co is -100.31%.

The industry rank for Hirose Electric Co's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

HROEY's Price-to-DCF (FCF Based) is ranked worse than
61.54% of 208 companies
in the Hardware industry
Industry Median: 1.535 vs HROEY: 2.00

Hirose Electric Co  (OTCPK:HROEY) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Hirose Electric Co Intrinsic Value: DCF (FCF Based) Related Terms


Hirose Electric Co Intrinsic Value: DCF (FCF Based) Historical Data

* Premium members only.

The historical data trend for Hirose Electric Co's Intrinsic Value: DCF (FCF Based) can be seen below:

* 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.

Hirose Electric Co Intrinsic Value: DCF (FCF Based) Chart

Hirose Electric Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Intrinsic Value: DCF (FCF Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.00 9.16 0.00 0.00 7.84

Hirose Electric Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Intrinsic Value: DCF (FCF Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 7.84 8.45

HROEY vs APH, GLW, TEL: Intrinsic Value: DCF (FCF Based) Comparison

For the Electronic Components subindustry, Hirose Electric Co's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) 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.


Hirose Electric Co Price-to-DCF (FCF Based) vs Hardware Industry

For the Hardware industry and Technology sector, Hirose Electric Co's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Hirose Electric Co's Price-to-DCF (FCF Based) falls into.


HROEY
89GF Score
Hirose Electric Co Ltd HROEY
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hirose Electric Co Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 9%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 2.67%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 7.10%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Hirose Electric Co's average Free Cash Flow Growth Rate in the past 10 years was 7.10%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 7.10%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $0.513.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Hirose Electric Co's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.071)/(1+0.09) = 0.98256880733945
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.09) = 0.95412844036697

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Free Cash Flow per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=0.513*15.6272
=8.02

Margin of Safety (FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(8.02-16.065)/8.02
=-100.31 %

* 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.

What does a Intrinsic Value: DCF (FCF Based) of $8.02 mean?
Hirose Electric Co (HROEY) has a Intrinsic Value: DCF (FCF Based) of $8.02 as of Aug. 21, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Hirose Electric Co and its competitors. This is 424% above median its historical median of 1.53. Over the past decade, Hirose Electric Co's Intrinsic Value: DCF (FCF Based) has ranged from 1.20 to 3.30. According to the industry distribution chart, Hirose Electric Co ranks #128 out of 208 companies in the Hardware industry, placing it in the top 61.5%.
Is Hirose Electric Co's Intrinsic Value: DCF (FCF Based) too high?
Hirose Electric Co's current Intrinsic Value: DCF (FCF Based) of $8.02 is 424% above median its 10-year median of 1.53. Over the past 10 years, this metric has ranged from a low of 1.20 to a high of 3.30. The Hardware industry median Intrinsic Value: DCF (FCF Based) is 1.54. Hirose Electric Co's value of $8.02 is 422.5% above this industry median. Based on the distribution chart, Hirose Electric Co ranks #128 out of 208 companies in the Hardware industry, which is below the industry midpoint. Overall, Hirose Electric Co has a GF Scoreâ„¢ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hirose Electric Co's Intrinsic Value: DCF (FCF Based) compare to APH and GLW?
According to the Hardware industry distribution chart, Hirose Electric Co ranks #128 out of 208 companies for Intrinsic Value: DCF (FCF Based). This places Hirose Electric Co in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 1.54. Hirose Electric Co's value of $8.02 is 422.5% above this benchmark. Historically, Hirose Electric Co's own Intrinsic Value: DCF (FCF Based) has ranged from 1.20 to 3.30 over the past decade. While the company's 10-year median is 1.53 vs. the industry median of 1.54, Hirose Electric Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (FCF Based) for a Hardware company?
The median Intrinsic Value: DCF (FCF Based) among Hardware companies is 1.54, based on 208 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (FCF Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hirose Electric Co's current Intrinsic Value: DCF (FCF Based) of $8.02 is 422.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (FCF Based) mean?
A high Intrinsic Value: DCF (FCF Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Hirose Electric Co and its competitors. For the Hardware industry, the median Intrinsic Value: DCF (FCF Based) is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hirose Electric Co's current Intrinsic Value: DCF (FCF Based) is $8.02, which is 424% above median its own 10-year median of 1.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hirose Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Hirose Electric Co (HROEY) is currently considered Fairly Valued. The stock's GF Value™ is $15.72, compared to a current price of $16.07 — trading 2.2% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is $8.02, which is 424% above median its 10-year median of 1.53 and 422.5% above the Hardware industry median of 1.54. Hirose Electric Co's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (FCF Based) calculated?
Intrinsic Value: DCF (FCF Based) is calculated from a company's financial statements. For Hirose Electric Co (HROEY), the current Intrinsic Value: DCF (FCF Based) is $8.02 as of Aug. 21, 2026. 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 Hirose Electric Co (HROEY) Overvalued in 2026?

Based on GuruFocus' analysis, Hirose Electric Co stock appears to be overvalued. The current stock price of $16.07 is trading 2.2% above its estimated GF Value™ of $15.72. GuruFocus considers Hirose Electric Co to be Fairly Valued.

Key valuation signals for HROEY:

  • Intrinsic Value: DCF (FCF Based): $8.02 (424% above median its 10-year median of 1.53)
  • GF Value™: $15.72 vs. price of $16.07 (2.2% above fair value)
  • GF Score™: 89/100 with 5 warning signs
  • Industry Position: 422.5% above the Hardware median (#128 of 208)

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


Hirose Electric Co Business Description

Other Exchanges 6806:Japan
Address 2-6-3 Nakagawa Chuoh, Tsuzuki-ku, Kanagawa Prefecture, Yokohama, JPN, 224-8540
Hirose Electric Co Ltd is engaged in the production and sale of connectors and related products. The company's operations are organized into two reportable segments: Multipole connectors and Coaxial connectors. Multipole connectors include circular, rectangular, ribbon cable, printed circuit board, and flexible printed circuit connectors, while Coaxial connectors are high-performance connectors for high-frequency and optical signal transmission. It generates the majority of its revenue from the Multipole connector segment.
89GF Score

Get the complete analysis for HROEY

Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$16.07
Price
$15.72
GF Value