Cathay Financial Holding Co Ltd (2882) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Cathay Financial Holding Co Ltd stock TWD 71.53, price TWD 112, that is 36.1% below the price, quality 57 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range 31.19 TWD – 116.50 TWD · fair‑value band 58.09 TWD – 99.57 TWD · the 112.00 TWD price screens above the 71.53 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial products and services in Taiwan, rest of Asia, and internationally.
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The company offers consumer banking services, such as deposit and remittance services; and credit services, including secured and unsecured consumer loans, adjustable-rate mortgage, revolving mortgage, and government subsidized mortgage.
It also provides corporate banking services, including corporate, sustainable, working capital, capital expenditure, and bill financing; financing for SMEs; loans for six core strategic industries; project lending; syndicated and structured loans; guarantee and acceptance services comprising tender and performance bond, prepayment, loan, promissory note, post-dated check, and medium/long term debt guarantee; trade financing solutions, such as import/export service, supply chain financing, and forfeiting and factoring; and cash management services.
In addition, the company offers wealth management solutions; trust business solutions, such as mutual fund and foreign securities service, real estate escrow trust, joint construction trust, urban renewal trust, and real estate inheritance trust; personal trust services, including children's, retirement, insurance, foreign currency money, equity planning, capital contribution, share ownership, dividend transfer, inheritance, and charity trust; corporate trust services, such as employee welfare and escrow trust, and electronic payment service; custodian service for investment trust funds, discretionary investment accounts, foreigners' investments, private equity funds, and investment-linked insurance policies and securities.
Further, it offers credit card services; merchant acquiring services; digital banking services through CUBE App and online banking services; and cross-border financial services. The company was founded in 1990 and is headquartered in Taipei, Taiwan.
Stock analysis
Cathay Financial Holding Co Ltd (2882) currently trades at 112.00 TWD, while our model-based Fair Value estimate is 71.53 TWD, 36% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of 67.14 TWD per share, and 0 of the 6 models we run sit above the 112.00 TWD price.
Bear case: the Asset-Based group reads lowest at 40.96 TWD, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: 58.09 TWD (bear) to 99.57 TWD (bull), the price of 112.00 TWD sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Financial Services sector.
Cathay Financial Holding Co Ltd reported revenue of 1.1T TWD in FY2025 versus 615B TWD in FY2021, a compound +14.6%/yr. Reported net income was 107B TWD in FY2025, compounding −6.4%/yr from FY2021.
Key figures
Market cap 1.6T TWD (≈ $49.9B) Large · P/E ratio 16.6 · P/S ratio 1.68 · EPS (TTM) 6.73 TWD · Dividend yield 3.1% · Net margin 10.1% · Return on equity 25.5% · Return on assets (EBIT) 1.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 76 out of 100 (low confidence).
What moves the price
The share trades about 4% below its 52-week high and 83% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −41% fair-value upside, at −36%, 2882 screens cheaper than that median.
Fair Value models
Bear58.09 TWDFair Value 71.53 TWDBull99.57 TWD
Price 112.00 TWD · Downside -36.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (2.74 TWD per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
What shareholders gained per year (last 5 years), in TWD ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ −26.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−30.0%
Dividend (yield on the price)3.1%
Per share before 2013divided by the spin-off factor 1.0678
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.5% vs 6.6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.100% → 11%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 2.8%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
⚠ Rate on operating basis: 2025 sits 110% above its own trend.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−15.9%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about −17.2% a year for the price.
News mood ⓘNews mood, the average tone of recent news (27 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Cathay Financial Holding Co Ltd with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance - Life · 77 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside−36.1% · Below median
Profitability
Return on equity (12 months)25.5% · Top 25%
Return on assets0.8% · Below median
Net margin (12 months)25.5% · Top 25%
Operating margin (12 months)52.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−62.4% · Bottom 25%
Dividend yield (12 months)3.1% · Above median
Balance sheet
Debt / equity0.22× · Below median
Valuation Multiplesvs Insurance - Life median · lower = cheaper
P/E (12 months)16.6× · Pricier than median
P/B1.77× · Pricier than median
P/S (12 months)1.72× · Pricier than median
Price / free cash flow7.4× · Pricier than median
EV/EBITDA9.4× · Pricier than median
PEG2.83× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 6
FUTURE (revenue growth)0· sector 44
PAST (return on equity)100· sector 52
HEALTH (low debt)89· sector 87
DIVIDEND (yield)63· sector 55
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Cathay Financial Holding Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2882
Frequently asked questions
Is Cathay Financial Holding Co Ltd (2882) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of 71.53 TWD versus a price of 112.00 TWD, about 36% lower (overvalued).
What is the fair value of 2882?
Our model-based fair value for Cathay Financial Holding Co Ltd is 71.53 TWD (as of Nov 1, 2026), built from audited fundamentals. The current price: 112.00 TWD.
What is the quality score of 2882?
Cathay Financial Holding Co Ltd has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cathay Financial Holding Co Ltd (2882)?
Our model-based price target is the fair value of 71.53 TWD (as of Nov 1, 2026) from 6 valuation models. Cautious scenario 58.09 TWD, optimistic scenario 99.57 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Cathay Financial Holding Co Ltd stock forecast for 2026?
Our models put fair value at 71.53 TWD, about 36% lower versus a price of 112.00 TWD (overvalued). Cautious scenario 58.09 TWD, optimistic scenario 99.57 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Cathay Financial Holding Co Ltd (2882)?
Cathay Financial Holding Co Ltd reported trailing-twelve-month revenue of about 955B TWD (latest available figure, as of Nov 1, 2026).
Does Cathay Financial Holding Co Ltd pay a dividend?
Cathay Financial Holding Co Ltd currently shows a dividend yield of 3.13% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Cathay Financial Holding Co Ltd (2882)?
For today's price to be fair in a discounted-cash-flow model, Cathay Financial Holding Co Ltd would have to grow free cash flow by -15.9 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.7 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of 2882 use?
Our models discount Cathay Financial Holding Co Ltd at 9.0 %: a base by market capitalisation (large), damped by beta 0.68, country premium for Taiwan. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cathay Financial Holding Co Ltd that is -15.9 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has Cathay Financial Holding Co Ltd (2882) delivered so far?
Over the past 5 years revenue at Cathay Financial Holding Co Ltd grew +10.7 % a year. The price currently implies -15.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cathay Financial Holding Co Ltd (2882) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Cathay Financial Holding Co Ltd (-15.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cathay Financial Holding Co Ltd (2882)?
The free-cash-flow yield on the price is 13.55 %: that much free cash flow Cathay Financial Holding Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cathay Financial Holding Co Ltd (2882)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cathay Financial Holding Co Ltd it is 71.53 TWD per share (as of Nov 1, 2026), against a price of 112.00 TWD. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Cathay Financial Holding Co Ltd stock overvalued or undervalued in 2026?
As of Nov 1, 2026, 2882 trades above its calculated fair value: price 112.00 TWD, fair value 71.53 TWD, a gap of about −36% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 2882?
No. The price is what the market pays today (112.00 TWD); the fair value is what the company's own numbers justify (71.53 TWD). For Cathay Financial Holding Co Ltd the two are 40.47 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Cathay Financial Holding Co Ltd worth?
The market values Cathay Financial Holding Co Ltd at about 1.6T TWD (market capitalisation, as of Nov 1, 2026). Per share that is 112.00 TWD; our models calculate a fair value of 71.53 TWD per share.
What do the bullish and bearish scenarios say about 2882?
Our models span a range for Cathay Financial Holding Co Ltd: cautious scenario 58.09 TWD, base 71.53 TWD, optimistic 99.57 TWD per share (as of Nov 1, 2026, price 112.00 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 2882?
Cathay Financial Holding Co Ltd trades at a price-to-earnings ratio of 16.6 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 71.53 TWD is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 10.9. Other multiples: PEG 2.8, P/B 1.8, P/S 1.7, EV/EBITDA 9.4.
What is the PEG ratio of 2882?
The PEG ratio of Cathay Financial Holding Co Ltd is 2.83 (P/E divided by earnings growth, as of Nov 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Cathay Financial Holding Co Ltd (2882)?
Balance-sheet figures for Cathay Financial Holding Co Ltd (as of Nov 1, 2026): return on equity 25.5%, debt of 0.22 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is 2882 from its 52-week high?
Cathay Financial Holding Co Ltd trades at 112.00 TWD, about 4% below its 52-week high of 116.50 TWD and 83% above the low of 61.31 TWD (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of 71.53 TWD is for.
Which stocks are comparable to Cathay Financial Holding Co Ltd?
From the same area (Financial Services) we also value Ping An Insurance (Group) Company, China Life Insurance Company, AIA Group, Manulife Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cathay Financial Holding Co Ltd stock attractive at the current price?
The data as of Nov 1, 2026: price 112.00 TWD, calculated fair value 71.53 TWD (−36%), Quality Score 57/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 2882 calculated?
We run Cathay Financial Holding Co Ltd through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 71.53 TWD, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Cathay Financial Holding Co Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cathay Financial Holding Co Ltd (2882)?
The closing price on Nov 5, 2026 was 112.00 TWD. Our model-based fair value is 71.53 TWD, about 36% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cathay Financial Holding Co Ltd right now?
The price sits above even our optimistic bull case (99.57 TWD). The favourable scenario is already priced in. Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Cathay Financial Holding Co Ltd (2882) come from?
Earnings per share at Cathay Financial Holding Co Ltd grew +4.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +0.6 %, EBIT margin −13.6 %, tax rate +0.1 %, residual (interest, one-offs) +20.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Cathay Financial Holding Co Ltd
How large is the market capitalisation of Cathay Financial Holding Co Ltd (2882)?
The market capitalisation of Cathay Financial Holding Co Ltd is 1.6T TWD (≈ $49.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cathay Financial Holding Co Ltd (2882)?
The price-to-sales ratio of Cathay Financial Holding Co Ltd is 1.68 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cathay Financial Holding Co Ltd (2882)?
Earnings per share at Cathay Financial Holding Co Ltd are 6.73 TWD (price ÷ EPS = P/E 16.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cathay Financial Holding Co Ltd (2882)?
The dividend yield of Cathay Financial Holding Co Ltd is 3.1% (payout 52.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Cathay Financial Holding Co Ltd (2882)?
The net margin of Cathay Financial Holding Co Ltd is 10.1% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cathay Financial Holding Co Ltd (2882)?
The return on equity (ROE) of Cathay Financial Holding Co Ltd is 25.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cathay Financial Holding Co Ltd (2882)?
On an EBIT basis the return on assets of Cathay Financial Holding Co Ltd is 1.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cathay Financial Holding Co Ltd (2882)?
The operating margin of Cathay Financial Holding Co Ltd is 52.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cathay Financial Holding Co Ltd (2882)?
Revenue at Cathay Financial Holding Co Ltd is growing −62.4% versus a year earlier (3y avg +40.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cathay Financial Holding Co Ltd (2882)?
Earnings per share at Cathay Financial Holding Co Ltd are growing +330% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Cathay Financial Holding Co Ltd (2882) hold?
Cathay Financial Holding Co Ltd holds more cash than debt, 335B TWD net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 1, 2026