CTBC Financial Holding Valuation

Q: What is the Fair Price of 2891B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2891B (NT$60.8) is trading below our estimate of [[fair value]] (NT$93.71)

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

Below Fair Value: 2891B (NT$60.8) is trading below our estimate of fair value (NT$93.71)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for 2891B. This is calculated by dividing 2891B's market cap by their current earnings.
What is 2891B's PE Ratio?
PE Ratio	11.4x
Earnings	NT$65.07b
Market Cap	NT$740.67b

2891B 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	2.4x
Enterprise Value/EBITDA	6.1x
PEG Ratio	12x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 2891B 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	17.3x
2886 Mega Financial Holding	16.7x	-3.1%	NT$591.1b
2884 E.SUN Financial Holding Company	16.2x	-0.1%	NT$436.7b
5880 Taiwan Cooperative Financial Holding	20.4x	n/a	NT$382.1b
2892 First Financial Holding	15.7x	-7.0%	NT$385.1b
2891B CTBC Financial Holding	11.4x	0.9%	NT$740.7b

Price-To-Earnings vs Peers: 2891B is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (17.6x).

Price to Earnings Ratio vs Industry

How does 2891B'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: 2891B is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the Asian Banks industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is 2891B'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.

2891B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	14.6x

Price-To-Earnings vs Fair Ratio: 2891B is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

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.