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The Ambassador Hotel,Ltd. (2704) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 17.0B TWD

TA The Ambassador Hotel,Ltd. 2704 · TW
Price45.85 TWD
Fair Value9.73 TWD
Upside-78.8%
Quality41/100
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Weak Growth
Highly profitable · 48.2% net margin
Low debt · negative free cash flow
1.07% dividend yield
Trails peers (4/12)
Narrow moat 40/100
Evidence: Medium Range 7.30 TWD – 12.16 TWD Share as image

Fair value as of: Jul 23, 2026

From 8 valuation models · updated 18 days ago

Share price +2.3% over the past month.

Below-average quality, and screening another 79% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (12.16 TWD). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

77.20 TWD 26.15 TWD Fair Value 9.73 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 26.15 TWD – 77.20 TWD · fair‑value band 7.30 TWD – 12.16 TWD · the 45.85 TWD price screens above the 9.73 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

The Ambassador Hotel,Ltd. (2704) currently trades at 45.85 TWD, while our model-based Fair Value estimate is 9.73 TWD, implying the stock looks roughly 78.8% overvalued today. The Quality Score stands at 41/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, The Ambassador Hotel,Ltd. generated revenue of 1.4B TWD at a net margin of 48.2%. Revenue grew 0.8% year over year. It earns a return on equity of 2.7%. Net debt stands at 740M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 7.30 TWD (bear case) to 12.16 TWD (bull case); at 45.85 TWD, the current price sits above 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 near its 52-week high and 12% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -62% fair-value upside, at -79%, 2704 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 47.38 TWD 43.74 TWD 31.48 TWD 76
Growth-Adj P/E 6.66 TWD 9.51 TWD 12.37 TWD 68
P/E Multiple 9.45 TWD 12.59 TWD 15.74 TWD 63
All 8 models by family
Earnings-Based
Graham-Dodd 3.89 TWD 4.76 TWD 5.35 TWD 54
Multiples
P/E Multiple 9.45 TWD 12.59 TWD 15.74 TWD 63
P/S Multiple 3.33 TWD 4.44 TWD 5.55 TWD 58
P/B Multiple 7.30 TWD 9.73 TWD 12.16 TWD 55
EV/EBITDA 13.74 TWD 15.63 TWD 17.53 TWD 54
Asset-Based
NCAV (Graham) 34.89 TWD 46.75 TWD 69.77 TWD 50
Economic Profit
Residual Income 47.38 TWD 43.74 TWD 31.48 TWD 76
Growth Earnings
Growth-Adj P/E 6.66 TWD 9.51 TWD 12.37 TWD 68

Widest divergence: Asset-Based (46.75 TWD) versus Earnings-Based (4.76 TWD). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 1.4B TWD
Revenue growth (YoY) +0.8%
Net margin 48.2%
Return on equity 2.7%
Free cash flow −4.1M TWD FY2025
P/E ratio 76.3
More key figures
Operating margin 3.1%
EPS (TTM) 0.5700 TWD
Dividend yield 1.2%
EPS growth (YoY) +694%
Net debt 740M TWD FY2025

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

Quality Score breakdown

Overall quality 41/100

Of which business quality 45 · Market factors (momentum, volatility) 64

Profitability 22
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 0
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 82
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

The Ambassador Hotel,Ltd. operates hotels and restaurants under the Ambassador Hotels, A CUT STEAKHOUSE, and Corner Bakery63 brands in Taiwan. Its facilities include restaurants, cafes, lounge bars, and clubs. The company was founded in 1951 and is based in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The Ambassador Hotel,Ltd. reported revenue of 1.4B TWD in FY2025 versus 1.5B TWD in FY2021, a compound −2.8%/yr. Reported net income was 210M TWD in FY2025.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.4B TWD
Latest YoY
+4.2%
Avg. growth/yr (3Y)
−2.2%
Avg. growth/yr (5Y)
−7.5%
Avg. growth/yr (23Y)
−1.8%
Revenue −2.8%/yr
FY21 1.5B TWD
FY22 1.4B TWD
FY23 1.3B TWD
FY24 1.3B TWD
FY25 1.4B TWD
Net income
FY21 −88.2M TWD
FY22 1.1B TWD
FY23 493M TWD
FY24 1.0B TWD
FY25 210M TWD

2704 screens 79% overvalued. Compare with Marriott International, Inc →

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Cite: Fair Value Calculator (2026). "The Ambassador Hotel,Ltd. Fair Value". https://www.fairvalue-calculator.com/stock/2704

Peer Group

Lodging · 170 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 41 · Bottom 25%
Fair Value upside −79% · Bottom 25%
Return on equity (TTM) 3% · Above median
Return on assets -0% · Bottom 25%
Net margin (TTM) 48% · Top 25%
Operating margin (TTM) 3% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 26.0× · Pricier than median
P/B 0.66× · Cheaper than median
P/S (TTM) 12.46× · 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 0 · sector 1
FUTURE 4 · sector 18
PAST 11 · sector 11
HEALTH 99 · sector 91
DIVIDEND 21 · sector 23

VALUE 0: the price sits above our fair-value range.

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 Lodging stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $369.05 $135.64 -63%
Hilton Worldwide Holdings HLT $328.48 $123.67 -62%
InterContinental Hotels Group IHG $159.87 $85.18 -47%
Hyatt Hotels Corporation H $191.00 $47.69 -75%
H World Group HTHT $42.67 $47.55 +11%
Accor SA AC €47.25 €39.26 -17%
The Indian Hotels Company INDHOTEL ₹743.20 ₹260.68 -65%
Wyndham Hotels & Resorts, Inc WH $78.54 $24.02 -69%
Hanjin Kal, 180640 113,500 KRW 36,890 KRW -67%
Jabal Omar Development Company 4250 16.00 SAR 11.64 SAR -27%

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Frequently asked questions

Is The Ambassador Hotel,Ltd. (2704) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 9.73 TWD versus a price of 45.85 TWD, about −79% (overvalued).
What is the fair value of 2704?
Our model-based fair value for The Ambassador Hotel,Ltd. is 9.73 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 45.85 TWD.
What is the quality score of 2704?
The Ambassador Hotel,Ltd. has a Quality Score of 41/100. 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 The Ambassador Hotel,Ltd. (2704)?
The Ambassador Hotel,Ltd. reported trailing-twelve-month revenue of about 1.4B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 2704?
The net profit margin of The Ambassador Hotel,Ltd. is about 48.2%, meaning it keeps roughly 48.2% of revenue as net income. Based on the latest reported figures.
Does The Ambassador Hotel,Ltd. pay a dividend?
The Ambassador Hotel,Ltd. currently shows a dividend yield of about 1.17% relative to its recent price (as of Jul 23, 2026).

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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