Taishin Financial Holding Valuation

Q: What is the Fair Price of 2887Z1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2887Z1 (NT$16.1) is trading below our estimate of [[fair value]] (NT$21.66)

Is 2887Z1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 2887Z1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2887Z1 (NT$16.1) is trading below our estimate of fair value (NT$21.66)

Significantly Below Fair Value: 2887Z1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2887Z1?

Key metric: As 2887Z1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2887Z1. This is calculated by dividing 2887Z1's market cap by their current earnings.
What is 2887Z1's PE Ratio?
PE Ratio	17.1x
Earnings	NT$14.32b
Market Cap	NT$244.22b

2887Z1 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	2x

Price to Earnings Ratio vs Peers

How does 2887Z1's PE Ratio compare to its peers?

The above table shows the PE ratio for 2887Z1 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	15x
2801 Chang Hwa Commercial Bank	14.2x	n/a	NT$198.9b
2890 SinoPac Financial Holdings	12.8x	1.1%	NT$288.2b
2880 Hua Nan Financial Holdings	15.7x	1.4%	NT$351.4b
5876 Shanghai Commercial & Savings Bank	17.4x	21.7%	NT$183.6b
2887Z1 Taishin Financial Holding	17.1x	8.5%	NT$244.2b

Price-To-Earnings vs Peers: 2887Z1 is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

How does 2887Z1'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: 2887Z1 is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is 2887Z1'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.

2887Z1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.1x
Fair PE Ratio	15.3x

Price-To-Earnings vs Fair Ratio: 2887Z1 is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).

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.