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Union Bank of Taiwan (2838) Fair Value & Analysis

Financial Services · TW · Market cap 94.8B TWD

UB Union Bank of Taiwan 2838 · TW
Price20.35 TWD
Fair Value19.55 TWD
Upside-3.9%
Quality31/100
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Strengths

Highly profitable · 31.7% net margin
Wide moat 65/100

Risks

!Expensive Growth
!Low debt · negative free cash flow
!Trails peers (4/14)
!Evidence only medium, so the estimate is less certain
Expensive Growth
Highly profitable · 31.7% net margin
Low debt · negative free cash flow
2.12% dividend yield
Trails peers (4/14)
Wide moat 65/100
Evidence: Medium Range 14.66 TWD – 24.43 TWD Share as image

Fair value as of: Aug 13, 2026

From 4 valuation models · updated 8 days ago

Fair value updated Aug 13, 2026, revised from 17.19 TWD to 19.55 TWD (+13.7%) since Jul 23, 2026. Share price +0.5% over the past month.

Below-average quality, currently priced close to our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

24.70 TWD 10.54 TWD Fair Value 19.55 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 10.54 TWD – 24.70 TWD · fair‑value band 14.66 TWD – 24.43 TWD · the 20.35 TWD price screens above the 19.55 TWD fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Union Bank of Taiwan (2838) currently trades at 20.35 TWD, while our model-based Fair Value estimate is 19.55 TWD, implying the stock looks roughly 3.9% fairly valued today. The Quality Score stands at 31/100 (below-average quality), in the Financial Services 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, Union Bank of Taiwan generated revenue of 20.3B TWD at a net margin of 31.5%. Revenue grew 9.3% year over year. It earns a return on equity of 7.6%. Net debt stands at 69.1B TWD. Fundamentals as of Aug 13, 2026

Our scenario range runs from 14.66 TWD (bear case) to 24.43 TWD (bull case); at 20.35 TWD, the current price sits within 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 8% below its 52-week high and 24% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 46% fair-value upside, at -4%, 2838 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 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. Evidence
Highest evidence
Residual Income 15.08 TWD 15.90 TWD 17.15 TWD 76
P/E Multiple 12.89 TWD 17.19 TWD 21.48 TWD 63
P/B Multiple 16.86 TWD 22.47 TWD 28.09 TWD 55
All 4 models by family
Multiples
P/E Multiple 12.89 TWD 17.19 TWD 21.48 TWD 63
P/B Multiple 16.86 TWD 22.47 TWD 28.09 TWD 55
Asset-Based
NCAV (Graham) 9.27 TWD 12.42 TWD 18.54 TWD 50
Economic Profit
Residual Income 15.08 TWD 15.90 TWD 17.15 TWD 76

Widest divergence: Multiples (17.19 TWD) versus Asset-Based (12.42 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 20.2B TWD
Revenue growth (YoY) +9.6%
Net margin 31.7%
Return on equity 7.6%
Free cash flow −12.2B TWD FY2025
P/E ratio 16.7
More key figures
Operating margin 35.9%
EPS (TTM) 1.22 TWD
Dividend yield 2.1%
EPS growth (YoY) +24.8%
Net debt 69.1B TWD FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 31/100

Of which business quality 25 · Market factors (momentum, volatility) 63

Profitability 32
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 34
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 27
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

Union Bank of Taiwan provides various banking products and services. It operates through Corporate Banking Unit, Consumer Banking Unit, Wealth Management and Trust Unit, Investing Unit, and Leasing Unit segments.

Full company description

Union Bank of Taiwan provides various banking products and services. It operates through Corporate Banking Unit, Consumer Banking Unit, Wealth Management and Trust Unit, Investing Unit, and Leasing Unit segments. The company accepts deposit products, loans, remittances, acceptances, issuance of guarantees and letters of credit, short-term bills transactions, foreign exchange transactions, savings, and trusts. It also provides corporate loans, discount bills and notes, domestic letters of credit and conduct accounts receivable factoring, mortgages, auto loans, personal loans, and other consumer credit; credit card services; and wealth management, trust, custodian business, safe-deposit box rental, and certification services for marketable securities. In addition, the company engages in handling of exports, imports, foreign remittances, foreign currency loans, and guarantees; trades in marketable securities and futures on behalf of customers; and acts as collecting and paying agent for public facilities fees, taxes, and remittances, as well as operates as a property insurance agency. Further, the company involved in the retail and distribution of hardware and software products; development of system programs; system development outsourcing; website designing; e-commerce activities; car rental; import and export financing; securities investment trust; and installment, leasing, and accounts receivable factoring businesses. Additionally, it engages in sale, purchase, and leasing of real estate; venture capital; general business investment; installment sale and purchase; investment leasing business; general and investment management consulting; investment and management of private equity fund; and power generation, transmission, distribution, and energy technology service business; and equipment leasing activities. Union Bank of Taiwan was founded in 1989 and is headquartered in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Union Bank of Taiwan reported revenue of 7.2B TWD in FY2025 versus 19.6B TWD in FY2021, a compound −22.1%/yr. Reported net income was 6.1B TWD in FY2025, compounding +8.0%/yr from FY2021.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
7.2B TWD
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.0%
Avg. growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.6%
Revenue −22.1%/yr
FY21 19.6B TWD
FY22 22.1B TWD
FY23 29.3B TWD
FY24 32.8B TWD
FY25 7.2B TWD
Net income +8.0%/yr
FY21 4.5B TWD
FY22 3.5B TWD
FY23 4.3B TWD
FY24 5.2B TWD
FY25 6.1B TWD
Character of growth · EPS growth decomposed (2014-2025) +6.0 % p.a.
Revenue per share +4.1 pp

of which total revenue +4.6 pp · buybacks/dilution −0.5 pp

EBIT margin +1.5 pp
Tax rate +0.3 pp
Residual (interest, one-offs) +0.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Union Bank of Taiwan Fair Value". https://www.fairvalue-calculator.com/stock/2838

Peer Group

Banks - Regional · 1091 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 30 · Bottom 25%
Fair Value upside −4% · Below median
Return on equity (TTM) 8% · Below median
Return on assets 1% · Below median
Net margin (TTM) 32% · Above median
Operating margin (TTM) 36% · Below median
Revenue growth 10% · Above median
Dividend yield (TTM) 2.3% · Below median
Debt / equity 0.12× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 16.7× · Pricier than 75% of peers
P/B 1.11× · Pricier than median
P/S (TTM) 4.69× · Pricier than 75% of peers
EV/EBITDA 6.9× · Cheaper than median
PEG 17.13× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE28 · sector 34
FUTURE48 · sector 44
PAST30 · sector 41
HEALTH94 · sector 85
DIVIDEND45 · sector 51

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

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,150 IDR 6,067 IDR +46%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

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Frequently asked questions

Is Union Bank of Taiwan (2838) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 19.55 TWD versus a price of 20.35 TWD, about −4% (fairly valued).
What is the fair value of 2838?
Our model-based fair value for Union Bank of Taiwan is 19.55 TWD (as of Aug 13, 2026), built from audited fundamentals. The current price: 20.35 TWD.
What is the quality score of 2838?
Union Bank of Taiwan has a Quality Score of 31/100. 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 Union Bank of Taiwan (2838)?
Union Bank of Taiwan reported trailing-twelve-month revenue of about 20.3B TWD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2838?
The net profit margin of Union Bank of Taiwan is about 31.5%, meaning it keeps roughly 31.5% of revenue as net income. Based on the latest reported figures.
Does Union Bank of Taiwan pay a dividend?
Union Bank of Taiwan currently shows a dividend yield of about 2.12% relative to its recent price (as of Aug 13, 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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