CTBC Financial Holding Co., Ltd.

TWSE:2891 Stock Report

Market Cap: NT$740.7b

CTBC Financial Holding Valuation

Is 2891 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 2891 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2891 (NT$37.75) is trading below our estimate of fair value (NT$74.2)

Significantly Below Fair Value: 2891 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2891?

Key metric: As 2891 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2891. This is calculated by dividing 2891's market cap by their current earnings.
What is 2891's PE Ratio?
PE Ratio11.9x
EarningsNT$62.34b
Market CapNT$740.70b

Price to Earnings Ratio vs Peers

How does 2891's PE Ratio compare to its peers?

The above table shows the PE ratio for 2891 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.9x
2886 Mega Financial Holding
16.9x-3.5%NT$589.6b
2884 E.SUN Financial Holding Company
16.4x-0.1%NT$439.1b
5880 Taiwan Cooperative Financial Holding
21.4xn/aNT$381.4b
2892 First Financial Holding
16.8x-4.4%NT$387.9b
2891 CTBC Financial Holding
11.9x2.3%NT$740.7b

Price-To-Earnings vs Peers: 2891 is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (17.9x).

Price to Earnings Ratio vs Industry

How does 2891's PE Ratio compare vs other companies in the Asian Banks Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2891 11.9xIndustry Avg. 8.5xNo. of Companies80PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2891 is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is 2891'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.

2891 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.9x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: 2891 is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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 2891 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$37.75
NT$39.85
+5.6%
7.1%NT$43.00NT$34.00n/a11
Nov ’25NT$35.70
NT$37.61
+5.4%
6.2%NT$41.00NT$34.00n/a10
Oct ’25NT$34.70
NT$37.39
+7.7%
6.2%NT$41.00NT$34.00n/a9
Sep ’25NT$32.65
NT$38.24
+17.1%
6.5%NT$41.10NT$33.00n/a9
Aug ’25NT$35.90
NT$38.20
+6.4%
8.1%NT$41.10NT$31.60n/a12
Jul ’25NT$38.20
NT$37.57
-1.7%
9.9%NT$41.10NT$29.60n/a12
Jun ’25NT$35.40
NT$34.21
-3.4%
7.8%NT$39.00NT$29.60n/a11
May ’25NT$34.10
NT$33.30
-2.3%
4.7%NT$35.00NT$29.60n/a11
Apr ’25NT$31.65
NT$33.03
+4.4%
4.5%NT$35.00NT$29.60n/a11
Mar ’25NT$29.05
NT$29.88
+2.8%
5.7%NT$32.00NT$27.00n/a12
Feb ’25NT$28.65
NT$29.93
+4.5%
5.6%NT$32.00NT$27.00n/a12
Jan ’25NT$28.35
NT$29.15
+2.8%
5.9%NT$31.60NT$26.10n/a11
Dec ’24NT$26.95
NT$28.63
+6.2%
5.4%NT$30.60NT$26.10n/a11
Nov ’24NT$24.35
NT$27.27
+12.0%
5.6%NT$30.00NT$25.20NT$35.7011
Oct ’24NT$24.50
NT$27.27
+11.3%
5.6%NT$30.00NT$25.20NT$34.7011
Sep ’24NT$23.80
NT$27.10
+13.9%
5.6%NT$30.00NT$25.20NT$32.6511
Aug ’24NT$26.25
NT$26.19
-0.2%
5.7%NT$29.20NT$24.00NT$35.9011
Jul ’24NT$24.85
NT$26.22
+5.5%
5.5%NT$29.20NT$24.00NT$38.2012
Jun ’24NT$24.30
NT$26.22
+7.9%
5.5%NT$29.20NT$24.00NT$35.4012
May ’24NT$22.60
NT$25.75
+14.0%
7.3%NT$28.70NT$22.05NT$34.1012
Apr ’24NT$21.85
NT$25.75
+17.9%
7.3%NT$28.70NT$22.05NT$31.6512
Mar ’24NT$22.70
NT$26.86
+18.3%
8.8%NT$30.00NT$22.50NT$29.0512
Feb ’24NT$22.75
NT$26.86
+18.1%
8.8%NT$30.00NT$22.50NT$28.6512
Jan ’24NT$22.10
NT$26.52
+20.0%
12.1%NT$30.00NT$19.00NT$28.3512
Dec ’23NT$22.60
NT$26.81
+18.6%
12.5%NT$30.00NT$19.00NT$26.9512
Nov ’23NT$21.10
NT$27.99
+32.7%
13.5%NT$33.00NT$20.00NT$24.3513

Analyst Forecast: Target price is less than 20% higher than the current share price.

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