China Merchants Bank Valuation

Q: What is the Fair Price of M4B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

M4B (€4.46) is trading below our estimate of [[fair value]] (€13.82)

Is M4B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of M4B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: M4B (€4.46) is trading below our estimate of fair value (€13.82)

Significantly Below Fair Value: M4B is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for M4B?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for M4B. This is calculated by dividing M4B's market cap by their current preferred multiple.
What is M4B's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	CN¥893.07b

M4B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does M4B's PE Ratio compare to its peers?

The above table shows the PE ratio for M4B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	13.7x
CBK Commerzbank	8.9x	7.8%	€19.4b
PCZ ProCredit Holding	4.7x	9.7%	€501.8m
TD Toronto-Dominion Bank	19.4x	18.0%	CA$148.3b
1120 Al Rajhi Banking and Investment	21.6x	12.1%	ر.س358.4b
M4B China Merchants Bank	6.4x	6.5%	€893.1b

Price-To-Earnings vs Peers: M4B is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (13.7x).

Price to Earnings Ratio vs Industry

How does M4B's PE Ratio compare vs other companies in the European Banks Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	0.4%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	0.4%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: M4B is good value based on its Price-To-Earnings Ratio (6.4x) compared to the European Banks industry average (7.6x).

Price to Earnings Ratio vs Fair Ratio

What is M4B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

M4B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.4x
Fair PE Ratio	11.9x

Price-To-Earnings vs Fair Ratio: M4B is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.