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Union Bank of Taiwan (2838A) Fair Value & Analysis

Financial Services · TW · Market cap 31.5B TWD

UB Union Bank of Taiwan 2838A · TW
Price51.90 TWD
Fair Value29.49 TWD
Upside-43.2%
Quality40/100
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Expensive Growth
Highly profitable · 31.7% net margin
negative free cash flow
0.84% dividend yield
Trails peers (2/9)
Moderate moat 62/100
Evidence: Medium Range 22.12 TWD – 36.86 TWD Share as image

Fair value as of: Jul 21, 2026

From 6 valuation models · updated 20 days ago

Share price −0.6% over the past month.

Below-average quality, and screening another 43% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (36.86 TWD). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • 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)

55.10 TWD 45.54 TWD Fair Value 29.49 TWD Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range 45.54 TWD – 55.10 TWD · fair‑value band 22.12 TWD – 36.86 TWD · the 51.90 TWD price screens above the 29.49 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Union Bank of Taiwan (2838A) currently trades at 51.90 TWD, while our model-based Fair Value estimate is 29.49 TWD, implying the stock looks roughly 43.2% overvalued today. The Quality Score stands at 40/100 (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%. The stock trades on a trailing P/E of 48.8. Fundamentals as of Jul 21, 2026

Our scenario range runs from 22.12 TWD (bear case) to 36.86 TWD (bull case); at 51.90 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 about 6% below its 52-week high, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -43%, 2838A 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 25.82 TWD 27.25 TWD 29.42 TWD 76
Gordon GGM 6.63 TWD 13.79 TWD 21.88 TWD 70
P/E Multiple 22.12 TWD 29.49 TWD 36.86 TWD 63
All 6 models by family
Dividend Discount
Gordon GGM 6.63 TWD 13.79 TWD 21.88 TWD 70
DDM Multi-Stage 6.63 TWD 10.87 TWD 14.48 TWD 61
Multiples
P/E Multiple 22.12 TWD 29.49 TWD 36.86 TWD 63
P/B Multiple 28.92 TWD 38.56 TWD 48.20 TWD 55
Asset-Based
NCAV (Graham) 15.85 TWD 21.24 TWD 31.70 TWD 50
Economic Profit
Residual Income 25.82 TWD 27.25 TWD 29.42 TWD 76

Widest divergence: Multiples (29.49 TWD) versus Dividend Discount (10.87 TWD). Highest evidence: Residual Income (76).

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 48.8
More key figures
Operating margin 35.9%
EPS (TTM) 1.11 TWD
Dividend yield 0.9%
EPS growth (YoY) +24.8%

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 31 · Market factors (momentum, volatility) 50

Profitability 40
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 46
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 20.2B TWD in FY2025 versus 16.9B TWD in FY2021, a compound +4.6%/yr. Reported net income was 6.1B TWD in FY2025, compounding +8.1%/yr from FY2021.

Growth Quality 47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
20.2B TWD
Latest YoY
+7.3%
Avg. growth/yr (3Y)
+6.1%
Avg. growth/yr (5Y)
+7.1%
Avg. growth/yr (8Y)
+6.3%
Revenue +4.6%/yr
FY21 16.9B TWD
FY22 16.9B TWD
FY23 17.7B TWD
FY24 18.8B TWD
FY25 20.2B TWD
Net income +8.1%/yr
FY21 4.5B TWD
FY22 3.5B TWD
FY23 4.3B TWD
FY24 5.2B TWD
FY25 6.1B TWD

2838A screens 43% overvalued. Compare with PT Bank Central Asia Tbk →

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

Peer Group

Banks - Regional · 1083 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 36 · Bottom 25%
Fair Value upside −43% · Bottom 25%
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) 0.8% · Bottom 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 46.7× · 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 39
FUTURE 48 · sector 44
PAST 30 · sector 41
HEALTH 0 · sector 85
DIVIDEND 17 · sector 49

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 Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Union Bank of Taiwan (2838A) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 29.49 TWD versus a price of 51.90 TWD, about −43% (overvalued).
What is the fair value of 2838A?
Our model-based fair value for Union Bank of Taiwan is 29.49 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 51.90 TWD.
What is the quality score of 2838A?
Union Bank of Taiwan has a Quality Score of 40/100. 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 (2838A)?
Union Bank of Taiwan reported trailing-twelve-month revenue of about 20.3B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 2838A?
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 0.85% relative to its recent price (as of Jul 21, 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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