Mega Financial Holding (2886) Fair Value & Analysis

Financial Services · TW · Market cap 682B TWD

A solid business, but screening 40% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (38.38 TWD). The favourable scenario is already priced in.
• Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 24.49 TWD – 53.10 TWD · fair‑value band 23.03 TWD – 38.38 TWD · the 50.90 TWD price screens above the 30.71 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Mega Financial Holding (2886) currently trades at 50.90 TWD, while our model-based Fair Value estimate is 30.71 TWD, implying the stock looks roughly 39.7% overvalued today. We read business quality at 68/100 (solid 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: high).

Over the trailing twelve months, Mega Financial Holding generated revenue of 78.9B TWD at a net margin of 46.1%. Revenue grew 12.0% year over year. It earns a return on equity of 9.4%. Net debt stands at 737B TWD. Fundamentals as of Jul 16, 2026

Our scenario range runs from 23.03 TWD (bear case) to 38.38 TWD (bull case); at 50.90 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 near its 52-week high and 34% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -40%, 2886 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.

Widest divergence: Growth DCF (189.42 TWD) versus Dividend Discount (17.27 TWD). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Mega Financial Holding Co., Ltd. provides various financial services in Taiwan. It offers brokerage, dealing and underwriting of short-term debt instruments and financial debentures; notary services for short-term debt instruments and financial debentures; guarantee or endorsement services for short-term debt instruments; brokerage for inter-bank call …

Full company description

Mega Financial Holding Co., Ltd. provides various financial services in Taiwan. It offers brokerage, dealing and underwriting of short-term debt instruments and financial debentures; notary services for short-term debt instruments and financial debentures; guarantee or endorsement services for short-term debt instruments; brokerage for inter-bank call loans; proprietary trading in government bonds; and foreign and domestic securities brokerage, securities dealing, securities underwriting, and future services. The company also provides fire, marine cargo, marine hull, auto, aviation, engineering, liability, credit and bond, and accidental insurance products; acquisition and underwriting services, including acquiring NPLs, real estate investment, and corporate restructuring; and collection solutions. In addition, it is involved in the venture capital and leverage buy-out investment; and issuing and managing equity fund, fixed income fund, and other investment trust instruments. Further, the company engages in deposits loan and guarantee business, trading financing, remittance business, offshore banking business, short-term bills business, foreign exchange trading, safety deposit box business, book-entry government bond business, various kinds of ATM debit card business and electronic banking, and internet banking business; credit card business, consumer loans, student loans, home purchase and maintenance loans, private banking, car loans, and credit insurance consumer loans; equity and investments, securities underwriting business, as well as financial planning and consulting services; and money trust, custodian services, trusteeship for bond issuances, and distribution of trust fund beneficiary certificates. The company was formerly known as CTB Financial Holding Co., Ltd. and changed its name to Mega Financial Holding Co., Ltd. in December 2002. The company was incorporated in 2002 and is headquartered in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mega Financial Holding reported revenue of 39.5B TWD in FY2025 versus 69.3B TWD in FY2021, a compound −13.1%/yr. Reported net income was 35.0B TWD in FY2025, compounding +8.0%/yr from FY2021.

2886 screens 40% overvalued. Compare with PT Bank Central Asia Tbk →

Peer Group

Banks - Regional · 1082 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.

Valuation Multiples vs Banks - Regional median · lower = cheaper

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: 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.

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

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Frequently asked questions

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.