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Continental Holdings (3703) Fair Value & Analysis

Industrials · TW · Market cap 16.8B TWD

CH Continental Holdings 3703 · TW
Price20.20 TWD
Fair Value30.59 TWD
Upside+51.4%
Quality55/100
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Healthy Growth
Thin margins · 5.1% net margin
Moderate debt · generates free cash flow
5.11% dividend yield
Ranks above peers (9/14)
Narrow moat 29/100
Evidence: High Range 22.94 TWD – 38.24 TWD Share as image

Fair value as of: Jul 23, 2026

From 25 valuation models · updated 18 days ago

Share price −1.9% over the past month.

A solid business, screening 51% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (22.94 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

39.60 TWD 18.51 TWD Fair Value 30.59 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 18.51 TWD – 39.60 TWD · fair‑value band 22.94 TWD – 38.24 TWD · the 20.20 TWD price screens below the 30.59 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Continental Holdings (3703) currently trades at 20.20 TWD, while our model-based Fair Value estimate is 30.59 TWD, implying the stock looks roughly 51.4% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Industrials 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, Continental Holdings generated revenue of 33.3B TWD at a net margin of 5.1%. Revenue declined 14.1% year over year. It earns a return on equity of 5.9%. Net debt stands at 30.1B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 22.94 TWD (bear case) to 38.24 TWD (bull case); at 20.20 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 19% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 51%, 3703 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 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
Growth DCF 32.07 TWD 45.91 TWD 64.59 TWD 80
Residual Income 26.35 TWD 27.02 TWD 26.57 TWD 76
Rev-Margin DCF 19.54 TWD 29.32 TWD 39.79 TWD 74
All 25 models by family
DCF Models
FCF DCF 30.95 TWD 45.65 TWD 66.27 TWD 38
Owner Earnings 18.34 TWD 27.75 TWD 40.97 TWD 31
5Y Revenue Exit 19.54 TWD 28.75 TWD 39.75 TWD 39
5Y EBITDA Exit 23.15 TWD 35.08 TWD 48.10 TWD 41
5Y P/E Exit 24.39 TWD 37.26 TWD 49.82 TWD 38
10Y Revenue Exit 23.02 TWD 31.95 TWD 42.41 TWD 36
10Y EBITDA Exit 25.78 TWD 36.21 TWD 48.43 TWD 37
10Y P/E Exit 26.55 TWD 37.67 TWD 49.67 TWD 35
Earnings-Based
Graham-Dodd 12.24 TWD 26.53 TWD 33.76 TWD 54
PEG = 1.0 4.14 TWD 5.92 TWD 7.70 TWD 46
EPV 10.67 TWD 13.14 TWD 15.30 TWD 59
Dividend Discount
Gordon GGM 10.33 TWD 16.11 TWD 22.46 TWD 70
DDM Multi-Stage 10.33 TWD 14.90 TWD 20.07 TWD 61
Multiples
P/E Multiple 28.34 TWD 37.79 TWD 47.24 TWD 63
P/S Multiple 22.94 TWD 30.59 TWD 38.24 TWD 58
P/B Multiple 22.94 TWD 30.59 TWD 38.24 TWD 55
EV/EBIT 21.47 TWD 30.00 TWD 38.54 TWD 53
EV/EBITDA 21.97 TWD 30.67 TWD 39.37 TWD 54
EV/Revenue 14.14 TWD 21.97 TWD 29.80 TWD 43
Asset-Based
NCAV (Graham) 16.91 TWD 22.65 TWD 33.81 TWD 50
Growth DCF
Growth DCF 32.07 TWD 45.91 TWD 64.59 TWD 80
Rev-Margin DCF 19.54 TWD 29.32 TWD 39.79 TWD 74
Economic Profit
Residual Income 26.35 TWD 27.02 TWD 26.57 TWD 76
ROIC Compounder 10.67 TWD 13.14 TWD 15.30 TWD 72
Growth Earnings
Growth-Adj P/E 20.98 TWD 29.97 TWD 38.96 TWD 68

Widest divergence: DCF Models (35.08 TWD) versus Earnings-Based (13.14 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 33.3B TWD
Revenue growth (YoY) -14.1%
Net margin 5.1%
Return on equity 5.9%
Free cash flow 2.7B TWD FY2025
P/E ratio 12.3
More key figures
Operating margin 5.1%
EPS (TTM) 1.80 TWD
Dividend yield 5.1%
EPS growth (YoY) +581%
Net debt 30.1B TWD FY2025

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

Quality Score breakdown

Overall quality 55/100

Of which business quality 53 · Market factors (momentum, volatility) 45

Profitability 22
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 99
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

Continental Holdings Corporation, together with its subsidiaries, engages in construction engineering, real estate development, environmental project development, and water treatment businesses in Taiwan and internationally.

Full company description

Continental Holdings Corporation, together with its subsidiaries, engages in construction engineering, real estate development, environmental project development, and water treatment businesses in Taiwan and internationally. The company constructs roads, bridges, tunnels, harbors, rapid transit projects, oil tankers, liquefied natural gas storage tanks, as well as undertakes power plant, environmental protection, and civil engineering projects. It also constructs residential buildings, commercial buildings, factories, hospitals, hotels, telecommunication rooms, educational and research facilities, township communities, and other construction projects; and engages in leasing and management of real estate properties. In addition, the company constructs, renovates, and operates water treatment, sewage treatment, wastewater reclamation, waste treatment, and biomass and renewable energy projects. Further, it engages in the underground pipeline construction projects; design and construction of sewer system; development of sludge reduction, energy-saving products, waste thermal treatment systems, sorting systems, exhaust gas treatment system, fly ash stabilization systems, and power generation technology; water treatment; and provision of mechanical and electrical services, such as electrical, plumbing, fire, and air-conditioning, as well as sells liquor. Continental Holdings Corporation was founded in 1945 and is based in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Continental Holdings reported revenue of 34.4B TWD in FY2025 versus 26.8B TWD in FY2021, a compound +6.4%/yr. Reported net income was 1.5B TWD in FY2025, compounding −5.1%/yr from FY2021.

Growth Quality 75/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
34.4B TWD
Latest YoY
+12.0%
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.
+2.3%
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.
+9.7%
Avg. growth/yr (22Y) 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.
+3.9%
Revenue +6.4%/yr
FY21 26.8B TWD
FY22 32.1B TWD
FY23 30.6B TWD
FY24 30.7B TWD
FY25 34.4B TWD
Net income −5.1%/yr
FY21 1.8B TWD
FY22 2.9B TWD
FY23 1.7B TWD
FY24 1.2B TWD
FY25 1.5B TWD

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Cite: Fair Value Calculator (2026). "Continental Holdings Fair Value". https://www.fairvalue-calculator.com/stock/3703

Peer Group

Engineering & Construction · 839 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 55 · Above median
Fair Value upside +51% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth -14% · Below median
Dividend yield (TTM) 5.1% · Top 25%
Debt / equity 0.54× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 9.8× · Cheaper than 75% of peers
P/B 0.60× · Cheaper than median
P/S (TTM) 0.50× · Cheaper than median
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 9.0× · Pricier than median

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 16
FUTURE 0 · sector 17
PAST 24 · sector 26
HEALTH 73 · sector 94
DIVIDEND 100 · sector 33

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

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Continental Holdings (3703) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 30.59 TWD versus a price of 20.20 TWD, about +51% (undervalued).
What is the fair value of 3703?
Our model-based fair value for Continental Holdings is 30.59 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 20.20 TWD.
What is the quality score of 3703?
Continental Holdings has a Quality Score of 55/100. 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 Continental Holdings (3703)?
Continental Holdings reported trailing-twelve-month revenue of about 33.3B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 3703?
The net profit margin of Continental Holdings is about 5.1%, meaning it keeps roughly 5.1% of revenue as net income. Based on the latest reported figures.
Does Continental Holdings pay a dividend?
Continental Holdings currently shows a dividend yield of about 5.11% 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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