Hua Nan Financial Holdings Co., Ltd.

TWSE:2880 Stock Report

Market Cap: NT$372.0b

Hua Nan Financial Holdings Valuation

Is 2880 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 2880 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2880 (NT$27.15) is trading above our estimate of fair value (NT$22.61)

Significantly Below Fair Value: 2880 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2880?

Key metric: As 2880 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2880. This is calculated by dividing 2880's market cap by their current earnings.
What is 2880's PE Ratio?
PE Ratio16.6x
EarningsNT$22.58b
Market CapNT$372.04b

Price to Earnings Ratio vs Peers

How does 2880's PE Ratio compare to its peers?

The above table shows the PE ratio for 2880 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.8x
5880 Taiwan Cooperative Financial Holding
20.8xn/aNT$385.9b
2884 E.SUN Financial Holding Company
16.5x0.08%NT$443.1b
2892 First Financial Holding
16.2x-1.9%NT$392.8b
2890 SinoPac Financial Holdings
13.8x1.2%NT$308.5b
2880 Hua Nan Financial Holdings
16.6x1.1%NT$372.0b

Price-To-Earnings vs Peers: 2880 is good value based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

How does 2880's PE Ratio compare vs other companies in the Asian Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2880 16.6xIndustry Avg. 8.8xNo. of Companies74PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2880 is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the Asian Banks industry average (8.8x).


Price to Earnings Ratio vs Fair Ratio

What is 2880'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.

2880 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.6x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: 2880 is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).


Analyst Price Targets

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

The above table shows the analyst 2880 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$27.15
NT$24.65
-9.2%
11.6%NT$27.50NT$21.80n/a2
Nov ’25NT$25.15
NT$22.57
-10.2%
9.6%NT$24.75NT$20.40n/a2
Oct ’25NT$25.60
NT$22.57
-11.8%
9.6%NT$24.75NT$20.40n/a2
Sep ’25NT$25.50
NT$22.57
-11.5%
9.6%NT$24.75NT$20.40n/a2
Aug ’25NT$28.12
NT$22.57
-19.7%
9.6%NT$24.75NT$20.40n/a2
Jul ’25NT$26.34
NT$22.57
-14.3%
9.6%NT$24.75NT$20.40n/a2
Jun ’25NT$24.75
NT$21.88
-11.6%
13.1%NT$24.75NT$19.01n/a2
May ’25NT$23.42
NT$21.88
-6.6%
13.1%NT$24.75NT$19.01n/a2
Apr ’25NT$22.97
NT$21.88
-4.7%
13.1%NT$24.75NT$19.01n/a2
Oct ’24NT$20.30
NT$21.93
+8.0%
12.9%NT$24.75NT$19.11NT$25.602
Sep ’24NT$20.40
NT$21.93
+7.5%
12.9%NT$24.75NT$19.11NT$25.502
Aug ’24NT$22.33
NT$22.23
-0.4%
11.4%NT$24.75NT$19.70NT$28.122
Jul ’24NT$21.98
NT$22.23
+1.1%
11.4%NT$24.75NT$19.70NT$26.342
Jun ’24NT$21.98
NT$22.23
+1.1%
11.4%NT$24.75NT$19.70NT$24.752
May ’24NT$21.68
NT$22.23
+2.5%
11.4%NT$24.75NT$19.70NT$23.422
Apr ’24NT$22.13
NT$22.23
+0.4%
11.4%NT$24.75NT$19.70NT$22.972
Mar ’24NT$22.62
NT$22.23
-1.8%
11.4%NT$24.75NT$19.70NT$21.632
Feb ’24NT$22.67
NT$22.23
-2.0%
11.4%NT$24.75NT$19.70NT$21.632
Jan ’24NT$22.23
NT$22.82
+2.7%
8.5%NT$24.75NT$20.89NT$22.132
Dec ’23NT$22.57
NT$22.82
+1.1%
8.5%NT$24.75NT$20.89NT$21.732

Analyst Forecast: Target price is lower than the current share price.


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