<div id="readability-page-1"><div><p>Fabrinet (FN) has quietly turned into one of the market’s stronger compounders, with the stock gaining about 12% this year and roughly tripling over the past 3 years, driven by steady revenue and profit growth.</p> <p>See our latest analysis for Fabrinet.</p> <p>That steady execution has not gone unnoticed, with a 90 day share price return of almost 30% and a one year total shareholder return of around 101% signaling momentum that still looks constructive rather than exhausted.</p> <p>If Fabrinet’s run has you wondering what else is working in tech hardware and communications, it might be a good time to explore high growth tech and AI stocks as your next set of ideas.</p> <p>With Fabrinet now trading almost exactly at analyst targets after a powerful multi year run, investors are left to decide: is this a rare high quality compounder still misunderstood, or has the market already priced in its future growth?</p> <h2>Most Popular Narrative Narrative: 0.2% Undervalued</h2> <p>Fabrinet’s fair value estimate of $479.25 sits almost exactly on the last close at $478.45. This frames the story as a razor thin mispricing call.</p> <blockquote> <p><em>The decision to accelerate capacity expansion (Building 10) due to robust customer demand and new program ramps positions Fabrinet to capture additional large-scale opportunities in AI infrastructure and next-gen telecom, likely supporting both sustained revenue growth and operating leverage as fixed costs are spread over higher output.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see the math behind this near perfect price call? The narrative leans on powerful growth forecasts and a punchy future earnings multiple. Curious which assumptions really carry the weight here? Explore the details to uncover the projections that justify this tight fair value band.</p> <p><strong>Result: Fair Value of $479.25 (ABOUT RIGHT)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, customer concentration and ongoing supply bottlenecks in next generation transceivers could quickly challenge the growth assumptions that underpin Fabrinet’s near perfect valuation case.</p> <p>Find out about the key risks to this Fabrinet narrative.</p> <h2>Another Lens on Valuation</h2> <p>Step away from fair value models, and the plain earnings multiple paints a different picture. Fabrinet trades on a P/E of 48.8 times, well above both peers at 38.7 times and a fair ratio of 34.2 times, suggesting sentiment could be running ahead of fundamentals.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9b796b13-64f0-46e8-b0ad-6cfcfb74e61e/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9b796b13-64f0-46e8-b0ad-6cfcfb74e61e/chart/pe-multiple-vs-industry"/><figcaption>NYSE:FN PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Fabrinet Narrative</h2> <p>If you want to challenge these conclusions or dig into the numbers yourself, you can craft a custom Fabrinet storyline in just minutes using Do it your way.</p> <p>A great starting point for your Fabrinet research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Ready for your next investing move?</h2> <p>Before you move on, consider setting up your next potential opportunities using the Simply Wall Street Screener so you are not relying on just one great story.</p> <ul> <li>Target reliable income streams by reviewing these 15 dividend stocks with yields &gt; 3% that might strengthen your portfolio’s cash generation and reduce reliance on short term swings.</li> <li>Capitalize on potential market mispricing by focusing on these 905 undervalued stocks based on cash flows where future cash flows may be available at a meaningful discount.</li> <li>Position yourself thoughtfully by scanning these 26 AI penny stocks that use artificial intelligence to reshape industries and long term growth trends.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>Fabrinet (FN) has seen strong stock performance, tripling over 3 years due to steady revenue and profit growth. Currently trading near analyst targets, its valuation is debated as either a rare high-quality compounder or fully priced. The fair value estimate is $479.25, close to its last close at $478.45. Risks include customer concentration and supply bottlenecks. Fabrinet's P/E ratio is 48.8, higher than peers, suggesting sentiment may exceed fundamentals. Investors are encouraged to explore other tech and AI stocks for potential opportunities.</p>

Fabrinet (FN): Reviewing Valuation After a Strong Multi‑Year Share Price Run