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Cathay Financial Holding (2882A) Fair Value & Analysis

Financial Services · TW · Market cap 517B TWD

CF Cathay Financial Holding 2882A · TW
Price60.30 TWD
Fair Value111.44 TWD
Upside+84.8%
Quality62/100
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Weak Growth
Thin margins · 7.7% net margin
generates free cash flow
Ranks above peers (11/12)
Moderate moat 58/100
Evidence: High Range 83.58 TWD – 139.30 TWD Share as image

Fair value as of: Jul 12, 2026

From 18 valuation models · updated 26 days ago

Share price +0.2% over the past month.

A solid business, screening 85% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (83.58 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • 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)

62.60 TWD 52.60 TWD Fair Value 111.44 TWD Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range 52.60 TWD – 62.60 TWD · fair‑value band 83.58 TWD – 139.30 TWD · the 60.30 TWD price screens below the 111.44 TWD fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Cathay Financial Holding (2882A) currently trades at 60.30 TWD, while our model-based Fair Value estimate is 111.44 TWD, implying the stock looks roughly 84.8% undervalued today. We read business quality at 62/100 (solid quality), in the Financial Services 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: high), always confirm before acting.

Over the trailing twelve months, Cathay Financial Holding generated revenue of 813B TWD at a net margin of 7.7%. Revenue grew 94.2% year over year. It earns a return on equity of 11.7%. The stock trades on a trailing P/E of 7.1. Fundamentals as of Jul 12, 2026

Our scenario range runs from 83.58 TWD (bear case) to 139.30 TWD (bull case); at 60.30 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 4% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 33% fair-value upside, at 85%, 2882A screens cheaper 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 69.06 TWD 81.91 TWD 167.34 TWD 76
Growth DCF 236.83 TWD 318.14 TWD 437.36 TWD 72
Growth-Adj P/E 101.45 TWD 144.92 TWD 188.40 TWD 68
All 18 models by family
DCF Models
FCF DCF 232.04 TWD 320.63 TWD 457.22 TWD 38
Owner Earnings 165.35 TWD 218.94 TWD 301.57 TWD 31
5Y Revenue Exit 157.52 TWD 193.05 TWD 235.69 TWD 39
5Y P/E Exit 195.69 TWD 262.40 TWD 329.75 TWD 38
10Y Revenue Exit 180.69 TWD 218.69 TWD 264.60 TWD 36
10Y P/E Exit 207.10 TWD 267.20 TWD 336.10 TWD 35
Earnings-Based
Graham-Dodd 58.29 TWD 155.23 TWD 202.98 TWD 54
Lynch FV 30.06 TWD 42.95 TWD 55.83 TWD 50
PEG = 1.0 30.06 TWD 42.95 TWD 55.83 TWD 46
Multiples
P/E Multiple 128.58 TWD 171.45 TWD 214.31 TWD 63
P/S Multiple 62.75 TWD 83.67 TWD 104.59 TWD 58
P/B Multiple 109.30 TWD 145.73 TWD 182.16 TWD 55
EV/Revenue 121.83 TWD 146.93 TWD 172.03 TWD 43
Asset-Based
NCAV (Graham) 37.14 TWD 49.76 TWD 74.27 TWD 50
Growth DCF
Growth DCF 236.83 TWD 318.14 TWD 437.36 TWD 72
Rev-Margin DCF 157.52 TWD 195.47 TWD 238.33 TWD 67
Economic Profit
Residual Income 69.06 TWD 81.91 TWD 167.34 TWD 76
Growth Earnings
Growth-Adj P/E 101.45 TWD 144.92 TWD 188.40 TWD 68

Widest divergence: DCF Models (218.94 TWD) versus Earnings-Based (42.95 TWD). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 813B TWD
Revenue growth (YoY) +94.2%
Net margin 7.7%
Return on equity 11.7%
Free cash flow 183B TWD FY2025
P/E ratio 7.0
More key figures
Operating margin 36.4%
EPS (TTM) 8.58 TWD
EPS growth (YoY) -1.5%

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 58 · Market factors (momentum, volatility) 53

Profitability 43
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 96
Earnings quality: real cash, not paper profit
Fin. Strength 18
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 33
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

Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial products and services in Taiwan, rest of Asia, and internationally.

Full company description

Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial products and services in Taiwan, rest of Asia, and internationally. 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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Cathay Financial Holding reported revenue of 418B TWD in FY2025 versus 622B TWD in FY2021, a compound −9.4%/yr. Reported net income was 107B TWD in FY2025, compounding −6.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
418B TWD
Latest YoY
+15.9%
Avg. growth/yr (3Y)
+3.3%
Avg. growth/yr (5Y)
−8.3%
Avg. growth/yr (8Y)
−4.1%
Revenue −9.4%/yr
FY21 622B TWD
FY22 380B TWD
FY23 265B TWD
FY24 361B TWD
FY25 418B TWD
Net income −6.4%/yr
FY21 140B TWD
FY22 37.4B TWD
FY23 50.9B TWD
FY24 110B TWD
FY25 107B TWD

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Cite: Fair Value Calculator (2026). "Cathay Financial Holding Fair Value". https://www.fairvalue-calculator.com/stock/2882A

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Insurance - Life · 96 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 59 · Above median
Fair Value upside +85% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 2% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 36% · Top 25%
Revenue growth 94% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 7.0× · Cheaper than median
P/B 0.56× · Cheaper than 75% of peers
P/S (TTM) 0.64× · Cheaper than median
P/FCF 0.1× · Cheaper 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 100 · sector 28
FUTURE 100 · sector 44
PAST 47 · sector 42
HEALTH 0 · sector 85
DIVIDEND 0 · sector 54

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 Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥38.72 ¥70.87 +83%
Ping An Insurance (Group) Company 601318 ¥49.60 ¥96.76 +95%
AIA Group 1299 HK$75.55 HK$7.88 -90%
Manulife Financial Corporation MFC C$58.52 C$45.13 -23%
Great-West Lifeco Inc GWO C$92.34 C$59.64 -35%
Life Insurance Corporation LICI ₹438.30 ₹590.43 +35%
Fubon Financial Holding 2881 124.50 TWD 115.05 TWD -8%
Samsung Life Insurance Co 032830 337,500 KRW 166,710 KRW -51%
China Pacific Insurance (Group) Co 601601 ¥29.75 ¥59.50 +100%
Prudential plc PUKN 545.00 MXN 722.72 MXN +33%

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Frequently asked questions

Is Cathay Financial Holding (2882A) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of 111.44 TWD versus a price of 60.30 TWD, about +85% (undervalued).
What is the fair value of 2882A?
Our model-based fair value for Cathay Financial Holding is 111.44 TWD (as of Jul 12, 2026), built from audited fundamentals. The current price is 60.30 TWD.
What is the quality score of 2882A?
Cathay Financial Holding has a Quality Score of 62/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Cathay Financial Holding (2882A)?
Cathay Financial Holding reported trailing-twelve-month revenue of about 813B TWD (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 2882A?
The net profit margin of Cathay Financial Holding is about 7.7%, meaning it keeps roughly 7.7% 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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