Far EasTone Telecommunications Co., Ltd.

TWSE:4904 Stock Report

Market Cap: NT$317.7b

Far EasTone Telecommunications Valuation

Is 4904 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 4904 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4904 (NT$88.2) is trading below our estimate of fair value (NT$220.41)

Significantly Below Fair Value: 4904 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4904?

Key metric: As 4904 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4904. This is calculated by dividing 4904's market cap by their current earnings.
What is 4904's PE Ratio?
PE Ratio26.4x
EarningsNT$12.02b
Market CapNT$317.66b

Price to Earnings Ratio vs Peers

How does 4904's PE Ratio compare to its peers?

The above table shows the PE ratio for 4904 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.9x
3045 Taiwan Mobile
24.3x5.6%NT$340.3b
2412 Chunghwa Telecom
26x3.1%NT$958.0b
7020 Etihad Etisalat
14.7x8.4%ر.س41.7b
A017670 SK Telecom
10.7x8.4%₩11.8t
4904 Far EasTone Telecommunications
26.4x10.4%NT$317.7b

Price-To-Earnings vs Peers: 4904 is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

How does 4904's PE Ratio compare vs other companies in the Asian Wireless Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
4904 26.4xIndustry Avg. 17.9xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4904 is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the Asian Wireless Telecom industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is 4904'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.

4904 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.4x
Fair PE Ratio29.6x

Price-To-Earnings vs Fair Ratio: 4904 is good value based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

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 4904 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$88.20
NT$100.00
+13.4%
7.4%NT$105.00NT$84.00n/a6
Nov ’25NT$89.00
NT$99.33
+11.6%
7.1%NT$105.00NT$84.00n/a6
Oct ’25NT$91.00
NT$96.83
+6.4%
9.1%NT$105.00NT$84.00n/a6
Sep ’25NT$90.50
NT$96.83
+7.0%
9.1%NT$105.00NT$84.00n/a6
Aug ’25NT$86.70
NT$91.33
+5.3%
9.3%NT$102.00NT$78.00n/a6
Jul ’25NT$86.40
NT$89.20
+3.2%
8.6%NT$100.00NT$78.00n/a5
Jun ’25NT$83.50
NT$89.20
+6.8%
8.6%NT$100.00NT$78.00n/a5
May ’25NT$80.80
NT$88.40
+9.4%
8.2%NT$98.00NT$78.00n/a5
Apr ’25NT$82.30
NT$88.43
+7.5%
7.5%NT$98.00NT$78.00n/a6
Mar ’25NT$77.80
NT$88.43
+13.7%
7.5%NT$98.00NT$78.00n/a6
Feb ’25NT$80.40
NT$88.43
+10.0%
9.1%NT$100.00NT$75.00n/a6
Jan ’25NT$79.80
NT$86.80
+8.8%
9.9%NT$100.00NT$75.00n/a5
Dec ’24NT$82.00
NT$82.67
+0.8%
12.8%NT$97.00NT$65.00n/a6
Nov ’24NT$76.80
NT$80.17
+4.4%
12.3%NT$95.00NT$65.00NT$89.006
Oct ’24NT$72.70
NT$80.17
+10.3%
12.3%NT$95.00NT$65.00NT$91.006
Sep ’24NT$70.80
NT$80.17
+13.2%
12.3%NT$95.00NT$65.00NT$90.506
Aug ’24NT$70.90
NT$81.67
+15.2%
14.2%NT$98.00NT$65.00NT$86.706
Jul ’24NT$78.60
NT$81.67
+3.9%
14.2%NT$98.00NT$65.00NT$86.406
Jun ’24NT$78.30
NT$81.67
+4.3%
14.2%NT$98.00NT$65.00NT$83.506
May ’24NT$78.90
NT$77.67
-1.6%
14.9%NT$98.00NT$65.00NT$80.806
Apr ’24NT$75.20
NT$76.00
+1.1%
11.8%NT$88.00NT$65.00NT$82.306
Mar ’24NT$68.60
NT$76.00
+10.8%
11.8%NT$88.00NT$65.00NT$77.806
Feb ’24NT$66.50
NT$76.58
+15.2%
9.4%NT$87.00NT$70.00NT$80.406
Jan ’24NT$65.90
NT$78.25
+18.7%
8.5%NT$87.00NT$70.00NT$79.806
Dec ’23NT$67.00
NT$78.25
+16.8%
8.5%NT$87.00NT$70.00NT$82.006
Nov ’23NT$71.00
NT$79.92
+12.6%
8.6%NT$87.00NT$70.00NT$76.806

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

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