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Postal Savings Bank of China Co (601658) Fair Value & Analysis

Financial Services · CN · Market cap 605B CNY

PS Postal Savings Bank of China Co 601658 · SHG
Price¥4.97
Fair Value¥8.41
Upside+69.1%
Quality45/100
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Healthy Growth
Highly profitable · 27.2% net margin
generates free cash flow
4.42% dividend yield
Mixed vs. peers (7/13)
Moderate moat 63/100
Evidence: High Range ¥6.30 – ¥10.51 Share as image

Fair value as of: Jul 13, 2026

From 26 valuation models · updated 25 days ago

Share price +0.9% over the past month.

Below-average quality, screening 69% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥6.30). The market is more pessimistic than our downside scenario.
  • Solid quality (45/100) 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)

¥6.39 ¥3.68 Fair Value ¥8.41 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range ¥3.68 – ¥6.39 · fair‑value band ¥6.30 – ¥10.51 · the ¥4.97 price screens below the ¥8.41 fair value. Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Postal Savings Bank of China Co (601658) currently trades at ¥4.97, while our model-based Fair Value estimate is ¥8.41, implying the stock looks roughly 69.1% undervalued today. We read business quality at 45/100 (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, Postal Savings Bank of China Co generated revenue of 323B CNY at a net margin of 27.2%. Revenue declined 0.3% year over year. It earns a return on equity of 8.2%. The balance sheet holds a net cash position of 390B CNY. Fundamentals as of Jul 13, 2026

Our scenario range runs from ¥6.30 (bear case) to ¥10.51 (bull case); at ¥4.97, 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 23% below its 52-week high and 2% 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 69%, 601658 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 ¥8.70 ¥9.50 ¥12.98 76
Growth DCF ¥24.54 ¥32.03 ¥44.68 72
Gordon GGM ¥3.50 ¥7.64 ¥12.85 70
All 26 models by family
DCF Models
FCF DCF ¥24.38 ¥31.85 ¥44.26 38
Owner Earnings ¥23.72 ¥30.75 ¥42.44 31
5Y Revenue Exit ¥20.85 ¥25.09 ¥30.48 39
5Y EBITDA Exit ¥23.30 ¥29.80 ¥37.49 41
5Y P/E Exit ¥24.76 ¥32.60 ¥41.03 38
10Y Revenue Exit ¥21.76 ¥26.04 ¥31.86 36
10Y EBITDA Exit ¥23.58 ¥29.45 ¥37.49 37
10Y P/E Exit ¥24.54 ¥31.46 ¥40.32 35
Earnings-Based
Graham-Dodd ¥5.93 ¥21.01 ¥28.28 54
Lynch FV ¥4.93 ¥7.04 ¥9.15 50
PEG = 1.0 ¥4.93 ¥7.04 ¥9.15 46
EPV ¥21.90 ¥23.44 ¥24.82 59
Dividend Discount
Gordon GGM ¥3.50 ¥7.64 ¥12.85 70
DDM Multi-Stage ¥3.50 ¥6.26 ¥7.96 61
Multiples
P/E Multiple ¥13.08 ¥17.44 ¥21.80 63
P/S Multiple ¥6.64 ¥8.86 ¥11.07 58
P/B Multiple ¥11.12 ¥14.82 ¥18.53 55
EV/EBIT ¥26.39 ¥30.80 ¥35.21 53
EV/EBITDA ¥23.84 ¥27.40 ¥30.96 54
EV/Revenue ¥19.36 ¥22.02 ¥24.67 43
Asset-Based
NCAV (Graham) ¥5.04 ¥6.75 ¥10.08 50
Growth DCF
Growth DCF ¥24.54 ¥32.03 ¥44.68 72
Rev-Margin DCF ¥20.85 ¥25.13 ¥30.26 67
Economic Profit
Residual Income ¥8.70 ¥9.50 ¥12.98 76
ROIC Compounder ¥21.90 ¥23.44 ¥24.82 67
Growth Earnings
Growth-Adj P/E ¥9.22 ¥13.17 ¥17.12 68

Widest divergence: DCF Models (¥29.80) versus Dividend Discount (¥6.26). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 323B CNY
Revenue growth (YoY) -0.3%
Net margin 27.2%
Return on equity 8.2%
Free cash flow 90.6B CNY FY2025
P/E ratio 6.9
More key figures
Operating margin 35.2%
EPS (TTM) ¥0.7300
Dividend yield 4.4%
EPS growth (YoY) -16.7%
Net cash 390B CNY FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 42 · Market factors (momentum, volatility) 47

Profitability 33
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 0
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

Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People's Republic of China.

Full company description

Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People's Republic of China. It offers demand, time, personal call, time/demand optional, call, negotiated, foreign currency exchange deposit; passbooks and certificate of deposits; credit, mortgage, government, farmer, and merchant express loan; business easy mix, agriculture aid plus, domestic remittance and exchange, and payment and collection agency; cross-border remittance, personal exchange settlement and sale, and foreign currency exchange services; personal housing, auto, consumer, and personal education loans; and bank cards, as well as online banking services. The company also provides pledge, syndicated, land reserve, town rebuild, commercial property mortgage, real estate development, fixed asset, project, and consignment loans. In addition, it offers check, promissory notes, bank and commercial draft, remittance, consignment collection, and collection with acceptance settlement services; accounts management, payments and collection, liquidity, investment and financing, information management, fund monitoring, and bank-enterprise direct link services; draft acceptance and discounting, draft manager, and electronic commercial draft services; foreign exchange deposit, foreign exchange settlement, sale, and conversion, settlement, and trade finance; custody services; and bill rediscount, interbank financing, investment, and market trading services. It operates through directly operated outlets and agency outlets. The company was founded in 2007 and is based in Beijing, China. Postal Savings Bank of China Co., Ltd. operates as a subsidiary of China Post Group Corporation Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Postal Savings Bank of China Co reported revenue of ¥355B in FY2025 versus ¥272B in FY2021, a compound +6.8%/yr. Reported net income was ¥87.4B in FY2025, compounding +3.5%/yr from FY2021.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
355B CNY
Latest YoY
+10.7%
Avg. growth/yr (3Y)
+5.8%
Avg. growth/yr (5Y)
+8.5%
Avg. growth/yr (13Y)
+8.6%
Revenue +6.8%/yr
FY21 ¥272B
FY22 ¥300B
FY23 ¥317B
FY24 ¥321B
FY25 ¥355B
Net income +3.5%/yr
FY21 ¥76.2B
FY22 ¥85.2B
FY23 ¥86.3B
FY24 ¥86.5B
FY25 ¥87.4B

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Cite: Fair Value Calculator (2026). "Postal Savings Bank of China Co Fair Value". https://www.fairvalue-calculator.com/stock/601658

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.

Quality Score 45 · Bottom 25%
Fair Value upside +69% · Top 25%
Return on equity (TTM) 8% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 27% · Below median
Operating margin (TTM) 35% · Below median
Revenue growth -0% · Bottom 25%
Dividend yield (TTM) 4.4% · Top 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 6.9× · Cheaper than 75% of peers
P/B 0.60× · Cheaper than 75% of peers
P/S (TTM) 1.88× · Cheaper than 75% of peers
P/FCF 1.0× · Cheaper than median
PEG 0.83× · 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 39
FUTURE 0 · sector 44
PAST 33 · sector 41
HEALTH 0 · sector 85
DIVIDEND 88 · 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 13, 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 Postal Savings Bank of China Co (601658) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ¥8.41 versus a price of ¥4.97, about +69% (undervalued).
What is the fair value of 601658?
Our model-based fair value for Postal Savings Bank of China Co is ¥8.41 (as of Jul 13, 2026), built from audited fundamentals. The current price is ¥4.97.
What is the quality score of 601658?
Postal Savings Bank of China Co has a Quality Score of 45/100. 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 Postal Savings Bank of China Co (601658)?
Postal Savings Bank of China Co reported trailing-twelve-month revenue of about 323B CNY (latest available figure, as of Jul 13, 2026).
What is the net profit margin of 601658?
The net profit margin of Postal Savings Bank of China Co is about 27.2%, meaning it keeps roughly 27.2% of revenue as net income. Based on the latest reported figures.
Does Postal Savings Bank of China Co pay a dividend?
Postal Savings Bank of China Co currently shows a dividend yield of about 4.42% relative to its recent price (as of Jul 13, 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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