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China Motor Corporation (2204) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 30.7B TWD

CM China Motor Corporation 2204 · TW
Price50.80 TWD
Fair Value63.34 TWD
Upside+24.7%
Quality42/100
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Weak Growth
Thin margins · 8.9% net margin
Low debt · negative free cash flow
Ranks above peers (9/13)
Narrow moat 37/100
Evidence: Medium Range 52.17 TWD – 81.76 TWD Share as image

Fair value as of: Jul 23, 2026

From 13 valuation models · updated 18 days ago

Fair value updated Jul 23, 2026, revised from 63.16 TWD to 63.34 TWD (+0.3%) since Jul 7, 2026. Share price −11.8% over the past month.

Below-average quality, screening 25% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (52.17 TWD). The market is more pessimistic than our downside scenario.
  • Our model range runs from 52.17 TWD (bear) to 81.76 TWD (bull), base 63.34 TWD. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 42/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

147.50 TWD 38.39 TWD Fair Value 63.34 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 38.39 TWD – 147.50 TWD · fair‑value band 52.17 TWD – 81.76 TWD · the 50.80 TWD price screens below the 63.34 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

China Motor Corporation (2204) currently trades at 50.80 TWD, while our model-based Fair Value estimate is 63.34 TWD, implying the stock looks roughly 24.7% undervalued today. The Quality Score stands at 42/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China Motor Corporation generated revenue of 33.6B TWD at a net margin of 8.9%. Revenue grew 18.4% year over year. It earns a return on equity of 7.8%. Net debt stands at 3.5B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 52.17 TWD (bear case) to 81.76 TWD (bull case); at 50.80 TWD, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 25% fair-value upside, at 25%, 2204 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 56.83 TWD 60.79 TWD 68.19 TWD 76
ROIC Compounder 24.29 TWD 27.22 TWD 29.79 TWD 72
Growth-Adj P/E 62.73 TWD 89.61 TWD 116.49 TWD 68
All 13 models by family
DCF Models
Owner Earnings 41.27 TWD 54.85 TWD 80.00 TWD 31
Earnings-Based
Graham-Dodd 36.67 TWD 44.82 TWD 50.43 TWD 54
EPV 24.29 TWD 27.22 TWD 29.79 TWD 59
Multiples
P/E Multiple 88.99 TWD 118.65 TWD 148.31 TWD 63
P/S Multiple 52.17 TWD 69.56 TWD 86.95 TWD 58
P/B Multiple 68.76 TWD 91.68 TWD 114.60 TWD 55
EV/EBIT 34.41 TWD 43.66 TWD 52.90 TWD 53
EV/EBITDA 42.83 TWD 54.88 TWD 66.93 TWD 54
EV/Revenue 25.38 TWD 33.39 TWD 41.40 TWD 43
Asset-Based
NCAV (Graham) 34.22 TWD 45.85 TWD 68.44 TWD 50
Economic Profit
Residual Income 56.83 TWD 60.79 TWD 68.19 TWD 76
ROIC Compounder 24.29 TWD 27.22 TWD 29.79 TWD 72
Growth Earnings
Growth-Adj P/E 62.73 TWD 89.61 TWD 116.49 TWD 68

Widest divergence: Growth Earnings (89.61 TWD) versus Earnings-Based (27.22 TWD). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 33.6B TWD
Revenue growth (YoY) +18.4%
Net margin 8.9%
Return on equity 7.8%
Free cash flow −999M TWD FY2025
P/E ratio 10.1
More key figures
Operating margin 4.6%
EPS (TTM) 5.47 TWD
EPS growth (YoY) +2.5%
Net debt 3.5B TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 42 · Market factors (momentum, volatility) 45

Profitability 36
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 37
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Motor Corporation manufactures and sells automobiles, and related parts and components in Taiwan and internationally. The company operates through Vehicle Manufacturing, Channel, and Others segments. It offers commercial and recreational vehicles, electric motorcycle, automated guided vehicle, sedan, RV, LCV, Truck, EV, and electric scooter.

Full company description

China Motor Corporation manufactures and sells automobiles, and related parts and components in Taiwan and internationally. The company operates through Vehicle Manufacturing, Channel, and Others segments. It offers commercial and recreational vehicles, electric motorcycle, automated guided vehicle, sedan, RV, LCV, Truck, EV, and electric scooter. The company also engages in overseas investment in production and service industries; manufacture of automobile engine; provision of after-sales services of vehicle; consulting and servicing, and investment activities; automatic control equipment engineering; and sale of second-hand vehicle, motorcycle, bicycle, and parts. China Motor Corporation was incorporated in 1969 and is based in Taoyuan City, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Motor Corporation reported revenue of 32.1B TWD in FY2025 versus 31.1B TWD in FY2021, a compound +0.8%/yr. Reported net income was 3.0B TWD in FY2025, compounding −8.1%/yr from FY2021.

Growth Quality 21/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
32.1B TWD
Latest YoY
−18.2%
Avg. growth/yr (3Y)
+2.8%
Avg. growth/yr (5Y)
+0.8%
Avg. growth/yr (25Y)
−2.6%
Revenue +0.8%/yr
FY21 31.1B TWD
FY22 29.6B TWD
FY23 38.5B TWD
FY24 39.2B TWD
FY25 32.1B TWD
Net income −8.1%/yr
FY21 4.2B TWD
FY22 −7.6B TWD
FY23 5.7B TWD
FY24 4.0B TWD
FY25 3.0B TWD

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Cite: Fair Value Calculator (2026). "China Motor Corporation Fair Value". https://www.fairvalue-calculator.com/stock/2204

Peer Group

Auto Manufacturers · 119 stocks

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.

Quality Score 42 · Below median
Fair Value upside +25% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 2% · Above median
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 5% · Above median
Revenue growth 18% · Above median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 10.1× · Cheaper than 75% of peers
P/B 0.81× · Cheaper than median
P/S (TTM) 0.92× · Pricier than median
EV/EBITDA 12.1× · Pricier than median
PEG 17.97× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 66 · sector 28
FUTURE 92 · sector 33
PAST 31 · sector 19
HEALTH 100 · sector 94
DIVIDEND 0 · sector 44

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $179.76 $224.63 +25%
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Volkswagen AG VOW 2,149 CZK 7,191 CZK +235%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%

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Frequently asked questions

Is China Motor Corporation (2204) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 63.34 TWD versus a price of 50.80 TWD, about +25% (undervalued).
What is the fair value of 2204?
Our model-based fair value for China Motor Corporation is 63.34 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 50.80 TWD.
What is the quality score of 2204?
China Motor Corporation has a Quality Score of 42/100. 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 revenue of China Motor Corporation (2204)?
China Motor Corporation reported trailing-twelve-month revenue of about 33.6B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 2204?
The net profit margin of China Motor Corporation is about 8.9%, meaning it keeps roughly 8.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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