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Taipei Star Bank (5863) Fair Value & Analysis

Financial Services · TW · Market cap 3.6B TWD

TS Taipei Star Bank 5863 · TWO
Price11.35 TWD
Fair Value16.71 TWD
Upside+47.2%
Quality42/100
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Expensive Growth
Solidly profitable · 13.2% net margin
negative free cash flow
3.51% dividend yield
Trails peers (4/11)
Narrow moat 43/100
Evidence: High Range 12.53 TWD – 20.88 TWD Share as image

Fair value as of: Jul 23, 2026

From 6 valuation models · updated 18 days ago

Share price +3.7% over the past month.

Below-average quality, screening 47% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (12.53 TWD). The market is more pessimistic than our downside scenario.
  • 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)

14.24 TWD 8.07 TWD Fair Value 16.71 TWD Feb 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 8.07 TWD – 14.24 TWD · fair‑value band 12.53 TWD – 20.88 TWD · the 11.35 TWD price screens below the 16.71 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 23, 2026.

Full chart & analysis →

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Analysis

Taipei Star Bank (5863) currently trades at 11.35 TWD, while our model-based Fair Value estimate is 16.71 TWD, implying the stock looks roughly 47.2% undervalued today. The Quality Score stands at 42/100 (below-average 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, Taipei Star Bank generated revenue of 1.4B TWD at a net margin of 13.2%. Revenue declined 10.8% year over year. It earns a return on equity of 2.9%. The balance sheet holds a net cash position of 6.2B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 12.53 TWD (bear case) to 20.88 TWD (bull case); at 11.35 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 10% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 47%, 5863 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
Residual Income 14.35 TWD 14.30 TWD 12.98 TWD 76
Gordon GGM 3.44 TWD 6.86 TWD 10.39 TWD 70
P/E Multiple 12.53 TWD 16.71 TWD 20.88 TWD 63
All 6 models by family
Dividend Discount
Gordon GGM 3.44 TWD 6.86 TWD 10.39 TWD 70
DDM Multi-Stage 3.44 TWD 5.53 TWD 7.24 TWD 61
Multiples
P/E Multiple 12.53 TWD 16.71 TWD 20.88 TWD 63
P/B Multiple 10.65 TWD 14.20 TWD 17.75 TWD 55
Asset-Based
NCAV (Graham) 9.65 TWD 12.94 TWD 19.31 TWD 50
Economic Profit
Residual Income 14.35 TWD 14.30 TWD 12.98 TWD 76

Widest divergence: Economic Profit (14.30 TWD) versus Dividend Discount (5.53 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.4B TWD
Revenue growth (YoY) -10.8%
Net margin 13.2%
Return on equity 2.9%
Free cash flow −447M TWD FY2025
P/E ratio 13.4
More key figures
Operating margin 20.8%
EPS (TTM) 0.8300 TWD
Dividend yield 3.5%
EPS growth (YoY) -57.4%
Net cash 6.2B TWD FY2024

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

Quality Score breakdown

Overall quality 42/100

Of which business quality 37 · Market factors (momentum, volatility) 54

Profitability 27
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 83
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

Taipei Star Bank provides various banking products and services in Taiwan. It offers demand and time deposits, current accounts, and fixed deposits, as well as cash, travel checks, and remittance services; revolving credit and house financing; and wealth management services, such as mutual funds, gold passbook, and insurance solutions, as well as eBanking …

Full company description

Taipei Star Bank provides various banking products and services in Taiwan. It offers demand and time deposits, current accounts, and fixed deposits, as well as cash, travel checks, and remittance services; revolving credit and house financing; and wealth management services, such as mutual funds, gold passbook, and insurance solutions, as well as eBanking services. The company was formerly known as Bank of Taipei, Ltd. and changed its name to Taipei Star Bank in May 2016. Taipei Star Bank was founded in 1917 and is headquartered in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Taipei Star Bank reported revenue of 1.3B TWD in FY2025 versus 1.2B TWD in FY2021, a compound +3.1%/yr. Reported net income was 267M TWD in FY2025, compounding +4.9%/yr from FY2021.

Growth Quality 37/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.3B TWD
Latest YoY
+13.5%
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.
+4.8%
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.
+3.0%
Avg. growth/yr (6Y) 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.
+3.5%
Revenue +3.1%/yr
FY21 1.2B TWD
FY22 1.2B TWD
FY23 1.1B TWD
FY24 1.2B TWD
FY25 1.3B TWD
Net income +4.9%/yr
FY21 221M TWD
FY22 221M TWD
FY23 113M TWD
FY24 251M TWD
FY25 267M TWD

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Cite: Fair Value Calculator (2026). "Taipei Star Bank Fair Value". https://www.fairvalue-calculator.com/stock/5863

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 42 · Bottom 25%
Fair Value upside +47% · Top 25%
Return on equity (TTM) 3% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 13% · Bottom 25%
Operating margin (TTM) 21% · Bottom 25%
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 3.5% · Above median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 13.7× · Pricier than median
P/B 0.59× · Cheaper than 75% of peers
P/S (TTM) 2.65× · Cheaper 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 96 · sector 39
FUTURE 0 · sector 44
PAST 12 · sector 41
HEALTH 0 · sector 85
DIVIDEND 70 · sector 49

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 23, 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 Taipei Star Bank (5863) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 16.71 TWD versus a price of 11.35 TWD, about +47% (undervalued).
What is the fair value of 5863?
Our model-based fair value for Taipei Star Bank is 16.71 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 11.35 TWD.
What is the quality score of 5863?
Taipei Star Bank has a Quality Score of 42/100. 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 Taipei Star Bank (5863)?
Taipei Star Bank reported trailing-twelve-month revenue of about 1.4B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 5863?
The net profit margin of Taipei Star Bank is about 13.2%, meaning it keeps roughly 13.2% of revenue as net income. Based on the latest reported figures.
Does Taipei Star Bank pay a dividend?
Taipei Star Bank currently shows a dividend yield of about 3.52% 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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