Cathay Financial Holding Valuation

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

CATFH ($21) is trading below our estimate of [[fair value]] ($35.33)

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 Ratio	11.4x
Earnings	NT$89.44b
Market Cap	NT$1.02t

CATFH 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	1x
Enterprise Value/EBITDA	4.2x
PEG Ratio	6.8x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	13x
SLF Sun Life Financial	13.9x	6.8%	CA$49.5b
6178 Japan Post Holdings	16.4x	13.1%	JP¥4.8t
2881 Fubon Financial Holding	11x	-1.9%	NT$1.3t
PRU Prudential Financial	10.6x	7.3%	US$42.7b
CATFH Cathay Financial Holding	11.4x	1.7%	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 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market 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 Ratio	11.4x
Fair PE Ratio	n/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.