Bank of East Asia Limited (BKEAY) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Bank of East Asia Limited $2.49, price $2.35, upside +6.0%, quality 60 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $0.7700 – $2.91 · fair‑value band $1.87 – $3.11 · the $2.35 price screens below the $2.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services.
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The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. It operates through eight segments: the Hong Kong Operations " Personal Banking; Hong Kong Operations " Wholesale Banking; Hong Kong Operations " Treasury Markets; Hong Kong Operations " Wealth Management; Hong Kong Operations " Others; Chinese Mainland Operations; and Overseas, Macau and Taiwan Operations. The company offers syndicated loans, trade finance, deposit-taking, foreign currency savings, remittances, mortgage loans, consumer loans, credit cards, cyberbanking, retail investment and wealth management services, private banking, Renminbi services, foreign exchange margin trading, broking services, and mandatory provident fund services. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.
Stock analysis
Bank of East Asia Limited (BKEAY) currently trades at $2.35, while our model-based Fair Value estimate is $2.49, implying the stock looks roughly 5.6% fairly valued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $17.19 per share, and 6 of the 6 models we run sit above the $2.35 price.
Bear case: the Dividend Discount group reads lowest at $10.89, and 0 of the 6 models stay below the price. Evidence for this calculation is medium.
Scenario range: $1.87 (bear) to $3.11 (bull), the price of $2.35 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Bank of East Asia Limited reported revenue of HK$37.5B in FY2025 versus HK$15.8B in FY2021, a compound +24.1%/yr. Reported net income was HK$3.5B in FY2025, compounding −9.8%/yr from FY2021.
Key figures
Market cap $6.2B · P/E ratio 15.7 · P/S ratio 1.46 · EPS (TTM) $0.1500 · Dividend yield 4.4% · Net margin 9.3% · Return on equity 3.3% · Return on assets (EBIT) 0.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 41 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 59% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −38% fair-value upside, at 6%, BKEAY screens cheaper than that median.
Fair Value models
Bear $1.87Fair Value $2.49Bull $3.11
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+143.0%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+9.4%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+24.9%
Start year 2020 (pandemic). Over 10 years: +10.2% a year
Revenue growth 25 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+8.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+5.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.3%
Dividend (yield on the price)4.4%
Pace: 5 vs 10 years ⓘ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.1% vs −5%, picking up
Profit margin 2020 to 2025 ⓘ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.32% → 12%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 2.4%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
less than -40 %
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−8.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in HKD, Hong Kong: IMF forecast 2.1% a year to 2030, 1.8% from 2016 to 2025) that is about −10.4% a year for the forecasts.
News mood ⓘNews mood, the average tone of recent news (46 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Negative
Recent news coverage is more negative than average.
Compare Bank of East Asia Limited with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Banks - Regional · 1074 stocks
Beats the industry median on 4/11 measures
Overall it trails its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside+6% · Above median
Profitability
Return on equity (TTM)3% · Bottom 25%
Return on assets0% · Bottom 25%
Net margin (TTM)23% · Below median
Operating margin (TTM)35% · Below median
Growth and dividend
Revenue growth−3% · Bottom 25%
Dividend yield (TTM)4.4% · Top 25%
Valuation Multiplesvs Banks - Regional median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Bank of East Asia Limited Fair Value". https://www.fairvalue-calculator.com/stock/BKEAY
Frequently asked questions
Is Bank of East Asia Limited (BKEAY) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $2.49 versus a price of $2.35, about +6% upside (fairly valued).
What is the fair value of BKEAY?
Our model-based fair value for Bank of East Asia Limited is $2.49 (as of Sep 23, 2026), built from audited fundamentals. The current price: $2.35.
What is the quality score of BKEAY?
Bank of East Asia Limited has a Quality Score of 60/100. 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 Bank of East Asia Limited (BKEAY)?
Our model-based price target is the fair value of $2.49 (as of Sep 23, 2026) from 6 valuation models. Cautious scenario $1.87, optimistic scenario $3.11. It is a calculation from audited fundamentals, not an analyst target.
What is the Bank of East Asia Limited stock forecast for 2026?
Our models put fair value at $2.49, about +6% upside versus a price of $2.35 (fairly valued). Cautious scenario $1.87, optimistic scenario $3.11. The calculation is refreshed regularly with new filings.
What is the revenue of Bank of East Asia Limited (BKEAY)?
Bank of East Asia Limited reported trailing-twelve-month revenue of about HK$15.4B (latest available figure, as of Sep 23, 2026).
Does Bank of East Asia Limited pay a dividend?
Bank of East Asia Limited currently shows a dividend yield of about 4.44% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Bank of East Asia Limited (BKEAY)?
For today's price to be fair in a discounted-cash-flow model, Bank of East Asia Limited would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +24.9 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of BKEAY use?
Our models discount Bank of East Asia Limited at 9.0 %: a base by market capitalisation (mid), damped by beta 0.70, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bank of East Asia Limited that is less than minus 40 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has Bank of East Asia Limited (BKEAY) delivered so far?
Over the past 5 years revenue at Bank of East Asia Limited grew +24.9 % a year. The price currently implies less than minus 40 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bank of East Asia Limited (BKEAY) growing?
The median revenue growth in the sector is +8.4 % a year. That is the yardstick for the growth priced into Bank of East Asia Limited (less than minus 40 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bank of East Asia Limited (BKEAY)?
The free-cash-flow yield on the price is 13.37 %: that much free cash flow Bank of East Asia Limited produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bank of East Asia Limited (BKEAY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bank of East Asia Limited it is $2.49 per share (as of Sep 23, 2026), against a price of $2.35. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Bank of East Asia Limited stock overvalued or undervalued in 2026?
As of Sep 23, 2026, BKEAY trades below its calculated fair value: price $2.35, fair value $2.49, a gap of about +6% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BKEAY?
No. The price is what the market pays today ($2.35); the fair value is what the company's own numbers justify ($2.49). For Bank of East Asia Limited the two are $0.1400 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bank of East Asia Limited worth?
The market values Bank of East Asia Limited at about $6.2B (market capitalisation, as of Sep 23, 2026). Per share that is $2.35; our models calculate a fair value of $2.49 per share.
What do the bullish and bearish scenarios say about BKEAY?
Our models span a range for Bank of East Asia Limited: cautious scenario $1.87, base $2.49, optimistic $3.11 per share (as of Sep 23, 2026, price $2.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BKEAY?
Bank of East Asia Limited trades at a price-to-earnings ratio of 15.7 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $2.49 is built from several models across several years. Other multiples: PEG 1.7.
What is the PEG ratio of BKEAY?
The PEG ratio of Bank of East Asia Limited is 1.70 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Bank of East Asia Limited (BKEAY)?
Balance-sheet figures for Bank of East Asia Limited (as of Sep 23, 2026): return on equity 3.3%. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is BKEAY from its 52-week high?
Bank of East Asia Limited trades at $2.35, about 3% below its 52-week high of $2.43 and 59% above the low of $1.48 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $2.49 is for.
Which stocks are comparable to Bank of East Asia Limited?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, Intesa Sanpaolo S.p.A, HDFC Bank Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bank of East Asia Limited stock attractive at the current price?
The data as of Sep 23, 2026: price $2.35, calculated fair value $2.49 (+6%), Quality Score 60/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BKEAY calculated?
We run Bank of East Asia Limited through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $2.49, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Bank of East Asia Limited currently trades 6 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bank of East Asia Limited (BKEAY)?
The closing price on Sep 23, 2026 was $2.35. Our model-based fair value is $2.49, about +6% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bank of East Asia Limited right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Bank of East Asia Limited (BKEAY) come from?
Earnings per share at Bank of East Asia Limited grew −2.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.3 %, EBIT margin −4.7 %, tax rate −0.2 %, residual (interest, one-offs) −2.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Bank of East Asia Limited
How large is the market capitalisation of Bank of East Asia Limited (BKEAY)?
The market capitalisation of Bank of East Asia Limited is $6.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bank of East Asia Limited (BKEAY)?
The price-to-sales ratio of Bank of East Asia Limited is 1.46 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bank of East Asia Limited (BKEAY)?
Earnings per share at Bank of East Asia Limited are $0.1500 (price ÷ EPS = P/E 15.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bank of East Asia Limited (BKEAY)?
The dividend yield of Bank of East Asia Limited is 4.4% (payout 69.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Bank of East Asia Limited (BKEAY)?
The net margin of Bank of East Asia Limited is 9.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Bank of East Asia Limited (BKEAY)?
The return on equity (ROE) of Bank of East Asia Limited is 3.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Bank of East Asia Limited (BKEAY)?
On an EBIT basis the return on assets of Bank of East Asia Limited is 0.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bank of East Asia Limited (BKEAY)?
The operating margin of Bank of East Asia Limited is 34.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bank of East Asia Limited (BKEAY)?
Revenue at Bank of East Asia Limited is growing −3.4% versus a year earlier (3y avg +9.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bank of East Asia Limited (BKEAY)?
Earnings per share at Bank of East Asia Limited are growing −57.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Bank of East Asia Limited (BKEAY) hold?
Bank of East Asia Limited holds more cash than debt, HK$24.6B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Sep 23, 2026