Mega Financial Holding Co., Ltd.

TWSE:2886 Stock Report

Market Cap: NT$589.6b

Mega Financial Holding Valuation

Is 2886 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 2886 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2886 (NT$39.75) is trading below our estimate of fair value (NT$40.77)

Significantly Below Fair Value: 2886 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 2886?

Key metric: As 2886 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2886. This is calculated by dividing 2886's market cap by their current earnings.
What is 2886's PE Ratio?
PE Ratio16.9x
EarningsNT$34.88b
Market CapNT$589.63b

Price to Earnings Ratio vs Peers

How does 2886's PE Ratio compare to its peers?

The above table shows the PE ratio for 2886 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.2x
2891 CTBC Financial Holding
11.4x0.6%NT$740.7b
2884 E.SUN Financial Holding Company
16.4x-0.1%NT$439.1b
2880 Hua Nan Financial Holdings
15.7x1.4%NT$351.4b
5880 Taiwan Cooperative Financial Holding
21.4xn/aNT$381.4b
2886 Mega Financial Holding
16.9x-3.5%NT$589.6b

Price-To-Earnings vs Peers: 2886 is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (16.2x).

Price to Earnings Ratio vs Industry

How does 2886's PE Ratio compare vs other companies in the Asian Banks Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2886 16.9xIndustry Avg. 8.5xNo. of Companies79PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2886 is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is 2886'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.

2886 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.9x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: 2886 is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

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 2886 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$39.75
NT$36.84
-7.3%
9.0%NT$41.75NT$32.20n/a10
Nov ’25NT$38.65
NT$36.84
-4.7%
9.0%NT$41.75NT$32.20n/a10
Oct ’25NT$39.45
NT$36.84
-6.6%
9.0%NT$41.75NT$32.20n/a10
Sep ’25NT$38.95
NT$36.85
-5.4%
9.0%NT$41.75NT$32.30n/a9
Aug ’25NT$42.04
NT$35.79
-14.9%
8.2%NT$41.75NT$31.94n/a9
Jul ’25NT$39.56
NT$35.59
-10.0%
9.1%NT$41.75NT$30.19n/a9
Jun ’25NT$37.91
NT$35.24
-7.0%
9.7%NT$41.75NT$30.19n/a9
May ’25NT$38.83
NT$35.73
-8.0%
10.3%NT$41.75NT$30.19n/a10
Apr ’25NT$39.47
NT$35.19
-10.8%
11.9%NT$41.75NT$27.18n/a12
Mar ’25NT$37.43
NT$34.38
-8.1%
10.5%NT$38.83NT$27.18n/a12
Feb ’25NT$36.80
NT$34.44
-6.4%
10.3%NT$38.83NT$27.18n/a12
Jan ’25NT$38.06
NT$34.34
-9.8%
10.5%NT$38.83NT$27.18n/a12
Dec ’24NT$37.52
NT$34.24
-8.8%
11.5%NT$38.83NT$25.62n/a12
Nov ’24NT$35.58
NT$33.75
-5.1%
12.0%NT$38.83NT$25.62NT$38.6512
Oct ’24NT$36.60
NT$33.75
-7.8%
12.0%NT$38.83NT$25.62NT$39.4512
Sep ’24NT$34.95
NT$32.00
-8.5%
13.4%NT$38.53NT$25.62NT$38.9510
Aug ’24NT$39.10
NT$31.98
-18.2%
13.4%NT$38.53NT$25.62NT$42.0410
Jul ’24NT$36.79
NT$31.98
-13.1%
13.4%NT$38.53NT$25.62NT$39.5610
Jun ’24NT$34.53
NT$31.50
-8.8%
11.7%NT$36.60NT$25.62NT$37.9110
May ’24NT$32.80
NT$30.94
-5.7%
12.5%NT$36.60NT$25.62NT$38.8310
Apr ’24NT$31.78
NT$31.63
-0.5%
13.5%NT$38.53NT$25.62NT$39.4711
Mar ’24NT$32.46
NT$31.23
-3.8%
13.8%NT$38.53NT$25.62NT$37.4311
Feb ’24NT$31.40
NT$31.23
-0.5%
13.8%NT$38.53NT$25.62NT$36.8011
Jan ’24NT$29.23
NT$31.94
+9.3%
11.8%NT$38.53NT$26.01NT$38.0610
Dec ’23NT$30.39
NT$31.77
+4.5%
12.7%NT$38.53NT$26.01NT$37.529
Nov ’23NT$28.65
NT$32.18
+12.3%
12.2%NT$38.53NT$26.01NT$35.5810

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

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