Shinkong Insurance Valuation

Q: What is the Fair Price of 2850 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2850 (NT$100.5) is trading below our estimate of [[fair value]] (NT$170.28)

Is 2850 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 2850 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2850 (NT$100.5) is trading below our estimate of fair value (NT$170.28)

Significantly Below Fair Value: 2850 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2850?

Key metric: As 2850 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2850. This is calculated by dividing 2850's market cap by their current earnings.
What is 2850's PE Ratio?
PE Ratio	9.8x
Earnings	NT$3.25b
Market Cap	NT$31.60b

2850 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	0.9x
Enterprise Value/EBITDA	4.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2850's PE Ratio compare to its peers?

The above table shows the PE ratio for 2850 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	8x
2832 Taiwan Fire & Marine Insurance	9.2x	n/a	NT$10.2b
2852 First Insurance	8.2x	n/a	NT$7.5b
2816 Union Insurance	7.1x	n/a	NT$7.0b
2851 Central Reinsurance	7.7x	n/a	NT$20.7b
2850 Shinkong Insurance	9.8x	n/a	NT$31.6b

Price-To-Earnings vs Peers: 2850 is expensive based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (8x).

Price to Earnings Ratio vs Industry

How does 2850's PE Ratio compare vs other companies in the Asian Insurance Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2850 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the Asian Insurance industry average (11.1x).

Price to Earnings Ratio vs Fair Ratio

What is 2850'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.

2850 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2850's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Taiwan Fire & Marine Insurance

NT$10.2b

Provides various insurance products and services in Taiwan.

2832

NT$28.25

0.2%

13.0%

Cathay Financial Holding

NT$993.1b

Through its subsidiaries, provides various financial products and services in Taiwan, rest of Asia, and internationally.

2882

NT$67.70

0.3%

46.7%