Cathay Financial Holding Co., Ltd.

BDL:CATFH Stock Report

Market Cap: US$31.4b

Cathay Financial Holding Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 CATFH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CATFH ($21) is trading below our estimate of fair value ($35.33)

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


Key Valuation Metric

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

Key metric: As CATFH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CATFH. This is calculated by dividing CATFH's market cap by their current earnings.
What is CATFH's PE Ratio?
PE Ratio11.4x
EarningsNT$89.44b
Market CapNT$1.02t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CATFH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13x
SLF Sun Life Financial
13.9x6.8%CA$49.5b
6178 Japan Post Holdings
16.4x13.1%JP¥4.8t
2881 Fubon Financial Holding
11x-1.9%NT$1.3t
PRU Prudential Financial
10.6x7.3%US$42.7b
CATFH Cathay Financial Holding
11.4x1.7%US$1.0t

Price-To-Earnings vs Peers: CATFH is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (13x).


Price to Earnings Ratio vs Industry

How does CATFH's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CATFH 11.4xIndustry Avg. 12.2xNo. of Companies15PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CATFH is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Insurance industry average (12x).


Price to Earnings Ratio vs Fair Ratio

What is CATFH'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.

CATFH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CATFH's Price-To-Earnings Fair Ratio for valuation analysis.


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.


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