China Merchants Bank Co Ltd (600036) Fair Value & Analysis
Financial Services · CN · Market cap 929B CNY (≈ $138B) · ISIN CNE000001B33
What is China Merchants Bank Co Ltd really worth?
A solid business, trading 49% below our fair value of ¥81.72.
As of Sep 2, 2026, the fair value of China Merchants Bank Co Ltd is ¥81.72 per share against a price of ¥41.69, so the fair value sits 96% above the price. A model estimate blended from multiple valuation models, recalculated regularly.
Strengths
Risks
For context
Fair value as of: Sep 2, 2026
From 6 valuation models · updated 4 days ago
Fair value updated Sep 2, 2026, revised from ¥77.40 to ¥81.72 (+5.6%) since Aug 13, 2026. Share price +7.1% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case (¥61.29). 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.
- 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 Sep 2, 2026.
How to read this chart
60‑month range ¥21.80 – ¥44.43 · fair‑value band ¥61.29 – ¥102.15 · the ¥41.69 price screens below the ¥81.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 2, 2026.
Analysis
China Merchants Bank Co Ltd (600036) currently trades at ¥41.69, while our model-based Fair Value estimate is ¥81.72, implying the stock looks roughly 49.0% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ¥83.20 per share, and 5 of the 6 models we run sit above the ¥41.69 price. Bear case: the Asset-Based group reads lowest at ¥39.82, and 1 of the 6 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, China Merchants Bank Co Ltd generated revenue of 299B CNY at a net margin of 50.5%. Revenue grew 1.7% year over year. It earns a return on equity of 11.9%. The balance sheet holds a net cash position of 15.0B CNY. Fundamentals as of Sep 2, 2026
Our scenario range runs from ¥61.29 (bear case) to ¥102.15 (bull case); at ¥41.69, 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 8% below its 52-week high and 13% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −17% fair-value upside, at 96%, 600036 screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥2.52 per share, which is 3.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 6 models by family
Widest divergence: Multiples (¥83.20) versus Asset-Based (¥39.82). Highest evidence: Residual Income (71).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 50 · Market factors (momentum, volatility) 64
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. It offers current, demand, time, call, savings, notice, and renminbi accounts.
Full company description
China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. It offers current, demand, time, call, savings, notice, and renminbi accounts. The company also offers loan products include personal commercial real estate, consumption, housing, and car loans; loans to finance for studying abroad; micro-business loans; mortgage loans for equipment; joint guarantee, special guarantee, and housing mortgage loan; bank acceptance, discount, liquid capital, and fixed asset loans; and loans for vessels. In addition, it offers credit cards; insurance products; open-ended funds; discount and guarantees for commercial bills, redemption of commercial bills, and guaranteed discount for commercial acceptance bills; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. Further, the company provides forfeiting and risk participation, escrow, cross-border RMB clearing, and interbank services; and risk and financial management, cross-border RMB and oversea financing, international factoring and settlement, and trade finance services. Additionally, it offers financial leasing and guarantee, investment and wealth management, forex option and gold trading, forex express trading, international, offshore and private banking, custody, pension, and electronic banking services. The company also operates in Hong Kong, New York, London, Singapore, Luxembourg, and Sydney. The company was founded in 1987 and is headquartered in Shenzhen, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
China Merchants Bank Co Ltd reported revenue of 338B CNY in FY2025 versus 265B CNY in FY2021, a compound +6.2%/yr. Reported net income was 150B CNY in FY2025, compounding +5.8%/yr from FY2021.
of which total revenue +9.3 % · buybacks/dilution −0.3 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Industrial And Commercial Bank Of China (SEHK:1398) Tests Repo Based Loans, Is The Stock Still Cheap?
- China Merchants Bank Subsidiary Brings $3.8B Institutional Fund to BNB Chain
Peer Group
Banks - Regional · 1070 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
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must China Merchants Bank Co Ltd deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →
Context: sector, industry, market
- Is the Financials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Chinese Stocks
Strength profile in five axes (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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Sep 2, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| DBS Group D05 | 75.65 SGD | 40.48 SGD | −46% |
| Intesa Sanpaolo S.p.A ISP | €6.78 | €5.66 | −17% |
| HDFC Bank Limited HDB | $23.18 | $24.12 | +4% |
| BNP Paribas SA BNP | €104.54 | €144.64 | +38% |
| UniCredit S.p.A UCG | €84.71 | €77.62 | −8% |
| Mizuho Financial Group MFG | $10.74 | $9.69 | −10% |
| ICICI Bank Limited ICICIBANK | ₹1,423 | ₹835.21 | −41% |
| Oversea-Chinese Banking Corporation O39 | 31.07 SGD | 19.80 SGD | −36% |
| CaixaBank, S.A CABK | €13.52 | €8.85 | −35% |
| The PNC Financial Services Group PNC | $242.22 | $192.40 | −21% |
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