CTBC Financial Holding Co., Ltd.

TWSE:2891C Stock Report

Market Cap: NT$732.8b

CTBC Financial Holding Valuation

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

Below Fair Value: 2891C (NT$56) is trading below our estimate of fair value (NT$87.04)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for 2891C. This is calculated by dividing 2891C's market cap by their current earnings.
What is 2891C's PE Ratio?
PE Ratio11.3x
EarningsNT$65.07b
Market CapNT$732.83b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 2891C vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
2886 Mega Financial Holding
17.1x-3.5%NT$595.6b
2884 E.SUN Financial Holding Company
16.6x-0.1%NT$444.7b
5880 Taiwan Cooperative Financial Holding
21.5xn/aNT$382.9b
2892 First Financial Holding
17x-4.4%NT$390.7b
2891C CTBC Financial Holding
11.3x0.9%NT$732.8b

Price-To-Earnings vs Peers: 2891C is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2891C 11.3xIndustry Avg. 8.6xNo. of Companies79PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2891C is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the Asian Banks industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is 2891C'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.

2891C PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: 2891C is good value based on its Price-To-Earnings Ratio (11.3x) 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.

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