Deswell Industries (FRA:DW2) Growth Rank: 1 (As of Aug. 31, 2026) — 75% Below Median

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FRA:DW2 Deswell Industries Inc FRA:DW2
68 GF Score
Price €2.50
GF Value €1.88
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Deswell Industries Growth Rank?

Deswell Industries FRA:DW2 -3.10% 68 Growth Rank is 1 as of Aug. 31, 2026, which is 75% below its 10-year median of 4.00. GuruFocus rates FRA:DW2 with a GF Score™ of 68/100 and a GF Value™ of €1.88 (Significantly Overvalued). The stock has 3 warning signs investors should review.

Deswell Industries has the Growth Rank of 1.

GuruFocus Growth Rank measures the growth of a company in terms of its revenue and profitability, rated on a scale from 1 to 10. Historically, the companies with the highest growth ranks performed the best over the long term. It is calculated using the following criteria:

1. 5-year revenue growth rate, the higher, the better.
2. 3-year revenue growth rate, the higher, the better.
3. 5-year EBITDA growth rate, the higher, the better.
4. The predictability of 5-year revenue. The most consistent it is, the higher the rank.

A higher score reflects a greater ability to drive business growth, with companies considered to have strong and sustainable expansion potential. Conversely, a lower score indicates challenges in achieving consistent growth and scalability.

GuruFocus found that the Growth Rank is the second of the two most-sensitive parameters among the five parameters checked. Please click GF Score to see more details on GF Score's 5 Key Aspects of Analysis.

Please note that we are using the five-year EBITDA growth rate as a parameter, so the company needs to have had positive growth over that time. The reason we use EBITDA instead of earnings per share is that with EBITDA, we can rank a lot more companies since a company may have positive EBITDA but negative EPS. Since we are looking at the growth here, EBITDA gives us a pretty clear picture about the growth in the company's business operations.

Deswell Industries Growth Rank Related Terms

FRA:DW2 vs ELTK, FSTJ, DAIO: Growth Rank Comparison

For the Electronic Components subindustry, Deswell Industries's Growth Rank, along with its competitors' market caps and Growth Rank 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 Growth Rank vs Hardware Industry

For the Hardware industry and Technology sector, Deswell Industries's Growth Rank distribution charts can be found below:

* The bar in red indicates where Deswell Industries's Growth Rank falls into.


FRA:DW2
68GF Score
Deswell Industries Inc FRA:DW2
Growth Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Growth Rank →
What does a Growth Rank of 1 mean?
Deswell Industries (FRA:DW2) has a Growth Rank of 1 as of Aug. 31, 2026. Growth Rank measures the growth of a company in terms of its revenue and profitability. View historical data on Deswell Industries and its competitors. This is 75% below median its historical median of 4.00. Over the past decade, Deswell Industries' Growth Rank has ranged from 1.00 to 9.00.
Is Deswell Industries' Growth Rank too high?
Deswell Industries' current Growth Rank of 1 is 75% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 9.00. Overall, Deswell Industries has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deswell Industries' Growth Rank compare to ELTK and FSTJ?
Deswell Industries' Growth Rank of 1 can be compared against companies in the Hardware industry. Historically, Deswell Industries' own Growth Rank has ranged from 1.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Growth Rank for a Hardware company?
A good Growth Rank depends on the Hardware industry context. However, Growth Rank 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 Growth Rank mean?
A high Growth Rank can signal that a stock is expensive relative to its fundamentals. Growth Rank measures the growth of a company in terms of its revenue and profitability. View historical data on Deswell Industries and its competitors. Deswell Industries's current Growth Rank is 1, which is 75% below median its own 10-year median of 4.00. 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 €1.88, compared to a current price of €2.50 — trading 33% above its estimated fair value. The current Growth Rank is 1, which is 75% below median its 10-year median of 4.00. Deswell Industries' overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Growth Rank calculated?
Growth Rank is calculated from a company's financial statements. For Deswell Industries (FRA:DW2), the current Growth Rank is 1 as of Aug. 31, 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 Deswell Industries (FRA:DW2) Overvalued in 2026?

Based on GuruFocus' analysis, Deswell Industries stock appears to be overvalued. The current stock price of €2.50 is trading 33% above its estimated GF Value™ of €1.88. GuruFocus considers Deswell Industries to be Significantly Overvalued.

Key valuation signals for FRA:DW2:

  • Growth Rank: 1 (75% below median its 10-year median of 4.00)
  • GF Value™: €1.88 vs. price of €2.50 (33% above fair value)
  • GF Score™: 68/100 with 3 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

Other Exchanges DSWL:USA
Address 10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC
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.
68GF Score

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

€2.50
Price
€1.88
GF Value