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China Everbright Bank Company (601818) Fair Value & Analysis

Financial Services · CN · Market cap 181B CNY

CE China Everbright Bank Company 601818 · SHG
Price¥3.06
Fair Value¥6.12
Upside+100.0%
Quality58/100
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Weak Growth
Highly profitable · 42.9% net margin
Low debt · generates free cash flow
5.76% dividend yield
Ranks above peers (9/13)
Moderate moat 61/100
Evidence: High Range ¥4.59 – ¥7.65 Share as image

Fair value as of: Jul 13, 2026

From 25 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from ¥5.96 to ¥6.12 (+2.7%) since Jul 7, 2026. Share price +0.7% over the past month.

A solid business, screening 100% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥4.59). The market is more pessimistic than our downside scenario.
  • Solid quality (58/100) 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)

¥4.44 ¥2.55 Fair Value ¥6.12 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 ¥2.55 – ¥4.44 · fair‑value band ¥4.59 – ¥7.65 · the ¥3.06 price screens below the ¥6.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

China Everbright Bank Company (601818) currently trades at ¥3.06, while our model-based Fair Value estimate is ¥6.12, implying the stock looks roughly 100.0% undervalued today. We read business quality at 58/100 (solid 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, China Everbright Bank Company generated revenue of 88.1B CNY at a net margin of 42.9%. Revenue declined 7.1% year over year. It earns a return on equity of 6.5%. Net debt stands at 905B CNY. Fundamentals as of Jul 13, 2026

Our scenario range runs from ¥4.59 (bear case) to ¥7.65 (bull case); at ¥3.06, 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 32% below its 52-week high, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 100%, 601818 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
Growth DCF ¥17.52 ¥23.74 ¥32.49 80
Residual Income ¥3.84 ¥4.03 ¥4.20 76
ROIC Compounder ¥6.99 ¥7.76 ¥8.60 72
All 25 models by family
DCF Models
FCF DCF ¥17.21 ¥24.11 ¥34.35 38
Owner Earnings ¥6.95 ¥8.63 ¥11.11 31
5Y Revenue Exit ¥9.53 ¥10.93 ¥12.47 39
5Y EBITDA Exit ¥11.01 ¥13.62 ¥16.49 41
5Y P/E Exit ¥11.09 ¥13.78 ¥16.45 38
10Y Revenue Exit ¥12.18 ¥14.05 ¥16.15 36
10Y EBITDA Exit ¥13.16 ¥15.90 ¥19.15 37
10Y P/E Exit ¥13.21 ¥16.00 ¥19.12 35
Earnings-Based
Graham-Dodd ¥2.08 ¥5.82 ¥7.65 54
Lynch FV ¥1.17 ¥1.67 ¥2.18 50
PEG = 1.0 ¥1.17 ¥1.67 ¥2.18 46
EPV ¥6.81 ¥7.34 ¥7.80 59
Dividend Discount
Gordon GGM ¥3.09 ¥6.42 ¥10.19 70
DDM Multi-Stage ¥3.09 ¥4.88 ¥6.74 61
Multiples
P/E Multiple ¥4.59 ¥6.12 ¥7.65 63
P/S Multiple ¥1.87 ¥2.49 ¥3.11 58
P/B Multiple ¥3.90 ¥5.20 ¥6.50 55
EV/EBIT ¥9.15 ¥10.97 ¥12.80 53
EV/EBITDA ¥8.12 ¥9.60 ¥11.08 54
EV/Revenue ¥5.41 ¥6.16 ¥6.90 43
Asset-Based
NCAV (Graham) ¥2.38 ¥3.20 ¥4.77 50
Growth DCF
Growth DCF ¥17.52 ¥23.74 ¥32.49 80
Economic Profit
Residual Income ¥3.84 ¥4.03 ¥4.20 76
ROIC Compounder ¥6.99 ¥7.76 ¥8.60 72
Growth Earnings
Growth-Adj P/E ¥3.68 ¥5.25 ¥6.83 68

Widest divergence: Growth DCF (¥23.74) versus Earnings-Based (¥1.67). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 88.1B CNY
Revenue growth (YoY) -7.1%
Net margin 42.9%
Return on equity 6.5%
Free cash flow 155B CNY FY2025
P/E ratio 5.6
More key figures
Operating margin 63.9%
EPS (TTM) ¥0.5600
Dividend yield 5.7%
EPS growth (YoY) -10.5%
Net debt 905B CNY FY2025

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

Quality Score breakdown

Overall quality 58/100

Of which business quality 63 · Market factors (momentum, volatility) 41

Profitability 32
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 100
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

China Everbright Bank Company Limited provides a range of financial products and services to corporations and government agencies, retail customers, and individuals in Mainland China, Hong Kong, Luxembourg, Macao, Seoul, and Sydney.

Full company description

China Everbright Bank Company Limited provides a range of financial products and services to corporations and government agencies, retail customers, and individuals in Mainland China, Hong Kong, Luxembourg, Macao, Seoul, and Sydney. It offers notice, RMB general and intelligent agreement, structured, and other deposits; working capital, fixed asset, project financing, syndicated, entrusted, and other loans; personal loans; E-grain, E-mortgage, and E-catering loans; overdraft facilities; and credit and debit cards. The company also provides bank acceptance bills; investment banking services, such as bond underwriting services, M&A financing, corporate asset-backed and credit asset-backed securitization, and intermediary business; auto and trade finance; factoring, FX transactions, e-settlement, e-financing chain, and blockchain forfaiting transaction platform; risk management products; interbank business products, such as interbank lending and deposits, fund custody, clearing agency, and issuance of L/G; and asset custody and management services. In addition, it is involved in monetary market, bond investment, bond underwriting, and proprietary bond trading business; foreign exchange trading; provision of mobile and online banking services; and operates mobile, electronic, and cloud fee payment platforms. The company was founded in 1992 and is headquartered in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Everbright Bank Company reported revenue of ¥126B in FY2025 versus ¥270B in FY2021, a compound −17.3%/yr. Reported net income was ¥38.8B in FY2025, compounding −2.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
126B CNY
Latest YoY
−53.7%
Avg. growth/yr (3Y)
−23.2%
Avg. growth/yr (5Y)
−13.0%
Avg. growth/yr (23Y)
+12.5%
Revenue −17.3%/yr
FY21 ¥270B
FY22 ¥279B
FY23 ¥289B
FY24 ¥273B
FY25 ¥126B
Net income −2.7%/yr
FY21 ¥43.4B
FY22 ¥44.8B
FY23 ¥40.8B
FY24 ¥41.7B
FY25 ¥38.8B

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Cite: Fair Value Calculator (2026). "China Everbright Bank Company Fair Value". https://www.fairvalue-calculator.com/stock/601818

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 59 · Below median
Fair Value upside +100% · Top 25%
Return on equity (TTM) 7% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 43% · Top 25%
Operating margin (TTM) 64% · Top 25%
Revenue growth -7% · Bottom 25%
Dividend yield (TTM) 5.8% · Top 25%
Debt / equity 0.28× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 5.5× · Cheaper than 75% of peers
P/B 0.30× · Cheaper than 75% of peers
P/S (TTM) 2.05× · Cheaper than 75% of peers
P/FCF 0.2× · 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 26 · sector 41
HEALTH 86 · sector 85
DIVIDEND 100 · 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 China Everbright Bank Company (601818) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ¥6.12 versus a price of ¥3.06, about +100% (undervalued).
What is the fair value of 601818?
Our model-based fair value for China Everbright Bank Company is ¥6.12 (as of Jul 13, 2026), built from audited fundamentals. The current price is ¥3.06.
What is the quality score of 601818?
China Everbright Bank Company has a Quality Score of 58/100. 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 China Everbright Bank Company (601818)?
China Everbright Bank Company reported trailing-twelve-month revenue of about 88.1B CNY (latest available figure, as of Jul 13, 2026).
What is the net profit margin of 601818?
The net profit margin of China Everbright Bank Company is about 42.9%, meaning it keeps roughly 42.9% of revenue as net income. Based on the latest reported figures.
Does China Everbright Bank Company pay a dividend?
China Everbright Bank Company currently shows a dividend yield of about 5.66% 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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