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China Everbright Bank Co Ltd (6818) Fair Value & Analysis

Financial Services · HK · Market cap HK$171B (≈ $21.8B) · ISIN CNE100001QW3

What is China Everbright Bank Co Ltd really worth?

CE China Everbright Bank Co Ltd 6818 · HK
PriceHK$2.87
Fair ValueHK$5.94
Upside+107.3%
Quality51/100

A solid business, trading 52% below our fair value of HK$5.94.

As of Aug 29, 2026, the fair value of China Everbright Bank Co Ltd is HK$5.94 per share against a price of HK$2.87, so the fair value sits 107% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 5y +2.5 %/yr)
Highly profitable · 42.9% net margin
Ranks above peers (9/14)

Risks

!High debt · generates free cash flow
!Moderate moat 59/100
!Evidence only low, so the estimate is less certain
!Weak on past: 26 out of 100

For context

·6.11% dividend yield
Evidence: Low Range HK$4.46 – HK$7.42

Fair value as of: Aug 29, 2026

From 6 valuation models · updated 8 days ago

Fair value updated Aug 29, 2026, revised from HK$5.98 to HK$5.94 (−0.7%) since Aug 13, 2026. Share price −7.9% 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 (HK$4.46). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (51/100) 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)

HK$3.85 HK$1.50 Fair Value HK$5.94 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range HK$1.50 – HK$3.85 · fair‑value band HK$4.46 – HK$7.42 · the HK$2.87 price screens below the HK$5.94 fair value. Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

China Everbright Bank Co Ltd (6818) currently trades at HK$2.87, while our model-based Fair Value estimate is HK$5.94, implying the stock looks roughly 51.8% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Financial Services sector. Bull case: the Dividend Discount group reads highest at a median of HK$10.03 per share, and 6 of the 6 models we run sit above the HK$2.87 price. Bear case: the Asset-Based group reads lowest at HK$6.05, and 0 of the 6 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, China Everbright Bank Co Ltd generated revenue of HK$88.1B 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 HK$914B. Fundamentals as of Aug 29, 2026

Our scenario range runs from HK$4.46 (bear case) to HK$7.42 (bull case); at HK$2.87, 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 26% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 107%, 6818 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 HK$0.1599 per share, which is 2.7 % 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.

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 best evidence HK$7.29 HK$7.64 HK$7.95 76
Gordon GGM HK$5.85 HK$12.17 HK$19.31 66
DDM Multi-Stage HK$5.85 HK$10.03 HK$12.77 66
All 6 models by family
Dividend Discount
Gordon GGM HK$5.85 HK$12.17 HK$19.31 66
DDM Multi-Stage HK$5.85 HK$10.03 HK$12.77 66
Multiples
P/E Multiple HK$5.66 HK$7.54 HK$9.43 63
P/B Multiple HK$7.40 HK$9.86 HK$12.33 55
Asset-Based
NCAV (Graham) HK$4.52 HK$6.05 HK$9.03 54
Economic Profit
Residual Income best evidence HK$7.29 HK$7.64 HK$7.95 76

Widest divergence: Dividend Discount (HK$10.03) versus Asset-Based (HK$6.05). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 4.4 as of Jul 2, 2026
P/S ratio 0.70 P/E × margin
EPS (TTM) HK$0.4094 price ÷ EPS = P/E 4.4
Dividend yield 6.1% payout 42.7%
Net margin 15.8% FY2025
Return on equity 6.5% TTM
More key figures
Profitability
Return on assets (EBIT) 0.8% avg 5y
Operating margin 63.9% TTM
Growth
Revenue (TTM) HK$88.1B TTM
Revenue growth (YoY) −7.1% 3y avg −4.2%
EPS growth (YoY) −10.5%
Balance sheet & cash flow
Free cash flow HK$155B FY2025
Net debt HK$914B FY2025 · ≈ 5.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 53 · Market factors (momentum, volatility) 42

Profitability 25
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 42
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.

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 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 Co Ltd reported revenue of 245B CNY in FY2025 versus 270B CNY in FY2021, a compound −2.4%/yr. Reported net income was 38.8B CNY in FY2025, compounding −2.7%/yr from FY2021.

Growth Quality 68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$245B
Avg. revenue 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.
+0.3%
Avg. revenue 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.
+2.5%
Avg. revenue growth/yr (19Y) 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.
+14.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+4.8% · in HKD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−1.3%
Dividend yield6.1%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y −1.3% vs 10Y −0.8%, steady
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18.0% (2020) → 20.2% (2025) · rising
Worst earnings drop18% (2025) · in HKD
Revenue −2.4%/yr
FY21 270B CNY
FY22 279B CNY
FY23 289B CNY
FY24 273B CNY
FY25 245B CNY
Net income −2.7%/yr
FY21 43.4B CNY
FY22 44.8B CNY
FY23 40.8B CNY
FY24 41.7B CNY
FY25 38.8B CNY
Character of growth · EPS growth decomposed (2014-2025) +0.4 % p.a.
Revenue per share +2.4 %

of which total revenue +5.6 % · buybacks/dilution −3.1 %

EBIT margin −2.7 %
Tax rate +0.8 %
Residual (interest, one-offs) +0.0 %

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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Cite: Fair Value Calculator (2026). "China Everbright Bank Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/6818.HK

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.

Quality Score 55 · Above median
Fair Value upside +99% · 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) 6.1% · Top 25%
Debt / equity 2.20× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 4.4× · Cheaper than 75% of peers
P/B 0.28× · Cheaper than 75% of peers
P/S (TTM) 1.94× · Cheaper than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 15.5× · Pricier than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 32
FUTURE0 · sector 45
PAST26 · sector 41
HEALTH0 · sector 85
DIVIDEND100 · sector 51

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

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
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%

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Frequently asked questions

Is China Everbright Bank Co Ltd (6818) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of HK$5.94 versus a price of HK$2.87, about +107% upside (undervalued).
What is the fair value of 6818?
Our model-based fair value for China Everbright Bank Co Ltd is HK$5.94 (as of Aug 29, 2026), built from audited fundamentals. The current price: HK$2.87.
What is the quality score of 6818?
China Everbright Bank Co Ltd has a Quality Score of 51/100. 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 price target for China Everbright Bank Co Ltd (6818)?
Our model-based price target is the fair value of HK$5.94 (as of Aug 29, 2026) from 6 valuation models. Cautious scenario HK$4.46, optimistic scenario HK$7.42. It is a calculation from audited fundamentals, not an analyst target.
What is the China Everbright Bank Co Ltd stock forecast for 2026?
Our models put fair value at HK$5.94, about +107% upside versus a price of HK$2.87 (undervalued). Cautious scenario HK$4.46, optimistic scenario HK$7.42. The calculation is refreshed regularly with new filings.
What is the revenue of China Everbright Bank Co Ltd (6818)?
China Everbright Bank Co Ltd reported trailing-twelve-month revenue of about HK$88.1B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of 6818?
The net profit margin of China Everbright Bank Co Ltd 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 Co Ltd pay a dividend?
China Everbright Bank Co Ltd currently shows a dividend yield of about 6.11% relative to its recent price (as of Aug 29, 2026).
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