China Banking Valuation

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

CBC (₱60.1) is trading below our estimate of [[fair value]] (₱63.5)

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

Below Fair Value: CBC (₱60.1) is trading below our estimate of fair value (₱63.5)

Significantly Below Fair Value: CBC is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CBC. This is calculated by dividing CBC's market cap by their current earnings.
What is CBC's PE Ratio?
PE Ratio	6.7x
Earnings	₱24.21b
Market Cap	₱161.21b

CBC 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	0.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CBC 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	34.1x
UBP Union Bank of the Philippines	12.6x	30.5%	₱123.5b
PTC Philippine Trust	109.1x	n/a	₱85.4b
MBT Metropolitan Bank & Trust	7.5x	6.3%	₱345.9b
RCB Rizal Commercial Banking	7.2x	n/a	₱60.0b
CBC China Banking	6.7x	15.4%	₱161.7b

Price-To-Earnings vs Peers: CBC is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (34.1x).

Price to Earnings Ratio vs Industry

How does CBC's PE Ratio compare vs other companies in the Asian Banks Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CBC is good value based on its Price-To-Earnings Ratio (6.7x) compared to the Asian Banks industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is CBC'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.

CBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.7x
Fair PE Ratio	7.5x

Price-To-Earnings vs Fair Ratio: CBC is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (7.5x).

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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