KGI Financial Holding Valuation

Q: What is the Fair Price of 2883 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2883 (NT$18) is trading below our estimate of [[fair value]] (NT$31.2)

Is 2883 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 2883 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2883 (NT$18) is trading below our estimate of fair value (NT$31.2)

Significantly Below Fair Value: 2883 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2883?

Key metric: As 2883 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2883. This is calculated by dividing 2883's market cap by their current earnings.
What is 2883's PE Ratio?
PE Ratio	11x
Earnings	NT$30.01b
Market Cap	NT$331.02b

2883 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	-5.7x

Price to Earnings Ratio vs Peers

How does 2883's PE Ratio compare to its peers?

The above table shows the PE ratio for 2883 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	10.4x
2888 Shin Kong Financial Holding	16.3x	0.5%	NT$214.0b
2882 Cathay Financial Holding	11.3x	1.7%	NT$1.0t
2881 Fubon Financial Holding	10.8x	-1.9%	NT$1.3t
5859 Farglory Life Insurance	3.4x	n/a	NT$22.8b
2883 KGI Financial Holding	11x	-1.9%	NT$331.0b

Price-To-Earnings vs Peers: 2883 is expensive based on its Price-To-Earnings Ratio (11x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does 2883'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: 2883 is expensive based on its Price-To-Earnings Ratio (11x) compared to the Asian Insurance industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is 2883'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.

2883 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11x
Fair PE Ratio	11x

Price-To-Earnings vs Fair Ratio: 2883 is expensive based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

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.