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China Airlines Ltd (2610) Fair Value & Analysis

Industrials · TW · Market cap 126B TWD (≈ $4.0B) · ISIN TW0002610003

What is China Airlines Ltd really worth?

CA China Airlines Ltd 2610 · TW
Price20.45 TWD
Fair Value14.65 TWD
Upside−28.4%
Quality36/100

Below-average quality, and trading another 40% above our fair value of 14.65 TWD.

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Strengths

Ranks above peers (9/14)

Risks

!Expensive Growth (revenue 5y +12.7 %/yr)
!Thin margins · 7.4% net margin
!Moderate debt · negative free cash flow
!Moderate moat 50/100
!Evidence only low, so the estimate is less certain

For context

·4.01% dividend yield
Evidence: Low Range 10.25 TWD – 21.09 TWD

Fair value as of: Aug 30, 2026

From 15 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from 41.85 TWD to 14.65 TWD (−65.0%) since Aug 13, 2026. Share price −9.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Weak quality (36/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (10.25 TWD to 21.09 TWD) leaves room in how you read the outcome.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

30.04 TWD 12.98 TWD Fair Value 14.65 TWD Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range 12.98 TWD – 30.04 TWD · fair‑value band 10.25 TWD – 21.09 TWD · the 20.45 TWD price screens above the 14.65 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

China Airlines Ltd (2610) currently trades at 20.45 TWD, while our model-based Fair Value estimate is 14.65 TWD, implying the stock looks roughly 39.6% overvalued today. The Quality Score stands at 36/100 (below-average quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of 41.85 TWD per share, and 11 of the 15 models we run sit above the 20.45 TWD price. Bear case: the Asset-Based group reads lowest at 10.75 TWD, and 4 of the 15 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, China Airlines Ltd generated revenue of 213B TWD at a net margin of 7.4%. Revenue grew 8.0% year over year. It earns a return on equity of 17.1%. Net debt stands at 52.1B TWD. Fundamentals as of Aug 30, 2026

Our scenario range runs from 10.25 TWD (bear case) to 21.09 TWD (bull case); at 20.45 TWD, the current price sits within 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 13% below its 52-week high and 16% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 45% fair-value upside, at −28%, 2610 screens richer 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 1.06 TWD per share, which is 7.2 % 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
EPV best evidence 23.61 TWD 28.04 TWD 31.91 TWD 74
ROIC Compounder 24.65 TWD 31.27 TWD 38.82 TWD 72
Residual Income 16.10 TWD 21.00 TWD 54.97 TWD 68
All 15 models by family
Earnings-Based
Graham-Dodd 16.44 TWD 40.89 TWD 53.02 TWD 65
PEG = 1.0 7.44 TWD 10.64 TWD 13.83 TWD 57
EPV best evidence 23.61 TWD 28.04 TWD 31.91 TWD 74
Dividend Discount
Gordon GGM 7.31 TWD 13.62 TWD 22.26 TWD 66
DDM Multi-Stage 7.31 TWD 11.04 TWD 15.10 TWD 66
Multiples
P/E Multiple 38.07 TWD 50.76 TWD 63.45 TWD 63
P/S Multiple 30.82 TWD 41.09 TWD 51.36 TWD 58
P/B Multiple 30.82 TWD 41.09 TWD 51.36 TWD 55
EV/EBIT 40.75 TWD 55.31 TWD 69.87 TWD 66
EV/EBITDA 77.44 TWD 104.24 TWD 131.03 TWD 67
EV/Revenue 28.24 TWD 41.61 TWD 54.97 TWD 53
Asset-Based
NCAV (Graham) 8.02 TWD 10.75 TWD 16.05 TWD 54
Economic Profit
Residual Income 16.10 TWD 21.00 TWD 54.97 TWD 68
ROIC Compounder 24.65 TWD 31.27 TWD 38.82 TWD 72
Growth Earnings
Growth-Adj P/E 29.29 TWD 41.85 TWD 54.40 TWD 67

Widest divergence: Growth Earnings (41.85 TWD) versus Asset-Based (10.75 TWD). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 8.6
P/S ratio 0.60 P/E × margin
EPS (TTM) 2.38 TWD price ÷ EPS = P/E 8.6
Dividend yield 4.0% payout 34.5%
Net margin 7.0% FY2025
Return on equity 17.1% TTM
More key figures
Profitability
Return on assets (EBIT) 4.3% avg 5y
Operating margin 11.3% TTM
Growth
Revenue (TTM) 213B TWD TTM
Revenue growth (YoY) +8.0% 3y avg +11.5%
EPS growth (YoY) +23.1%
Balance sheet & cash flow
Free cash flow −4.3B TWD FY2025
Net debt 52.1B TWD FY2025

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 36/100

Of which business quality 39 · Market factors (momentum, volatility) 55

Profitability 38
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 27
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 Airlines, Ltd., together with its subsidiaries, provides passenger, cargo, and postal services in the Americas, Northeast Asia, Southeast Asia, Europe, Australia, China, and Taiwan.

Full company description

China Airlines, Ltd., together with its subsidiaries, provides passenger, cargo, and postal services in the Americas, Northeast Asia, Southeast Asia, Europe, Australia, China, and Taiwan. The company also offers agency services for operations and maintenance; aircraft maintenance; avionics computer operation contracting; cleaning and washing products for passenger aircraft; real estate leasing services; in-flight meals; hotel and catering services. In addition, it is involved in agency and sale of aircraft parts and aviation equipment; aircraft leasing and sale; hotel business; computer hardware and software sale and maintenance business; cargo warehousing; intermodal air freight and warehousing business; real estate management; and airport support services and investment business. As of February 28, 2026, the company operates 83 aircraft, including 65 passenger jets and 18 freighters. China Airlines, Ltd. was incorporated in 1959 and is based in Taoyuan City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Airlines Ltd reported revenue of 209B TWD in FY2025 versus 139B TWD in FY2021, a compound +10.8%/yr. Reported net income was 14.7B TWD in FY2025, compounding +11.9%/yr from FY2021.

Growth Quality 54/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
209B TWD
Latest YoY
+2.6%
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.
+11.5%
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.
+12.7%
Avg. revenue growth/yr (25Y) 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.
+4.4%
Value creation/yr (5Y, in TWD) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+11.6% (7.6 + 4.0)
Revenue +10.8%/yr
FY21 139B TWD
FY22 151B TWD
FY23 185B TWD
FY24 204B TWD
FY25 209B TWD
Net income +11.9%/yr
FY21 9.4B TWD
FY22 2.2B TWD
FY23 6.8B TWD
FY24 14.4B TWD
FY25 14.7B TWD
Character of growth · EPS growth decomposed (2015-2025) +15.4 % p.a.
Revenue per share +2.6 %

of which total revenue +4.0 % · buybacks/dilution −1.3 %

EBIT margin +7.5 %
Tax rate +1.0 %
Residual (interest, one-offs) +3.5 %

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).

2610 screens 40% overvalued. Compare with Delta Air Lines, Inc →

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Cite: Fair Value Calculator (2026). "China Airlines Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2610

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Airlines · 57 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 36 · Below median
Fair Value upside −28% · Bottom 25%
Return on equity (TTM) 17% · Above median
Return on assets 4% · Above median
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth 8% · Below median
Dividend yield (TTM) 4.0% · Above median
Debt / equity 0.77× · Higher than median

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 8.6× · Cheaper than 75% of peers
P/B 1.29× · Cheaper than median
P/S (TTM) 0.59× · Cheaper than median
EV/EBITDA 3.7× · Cheaper than 75% of peers
PEG 1.22× · Pricier than median

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
VALUE0 · sector 53
FUTURE40 · sector 51
PAST69 · sector 48
HEALTH61 · sector 69
DIVIDEND80 · sector 48

VALUE 0: the price sits above our fair-value range.

Insider activity: 30/100

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 Airlines stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $80.07 $115.82 +45%
United Airlines Holdings UAL $110.60 $175.62 +59%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $38.73 $14.76 −62%
InterGlobe Aviation Limited INDIGO ₹5,166 ₹3,073 −41%
Singapore Airlines Limited C6L 7.09 SGD 7.89 SGD +11%
Air China Limited 601111 ¥5.94 ¥7.16 +21%
LATAM Airlines Group LTM $52.50 $106.79 +103%
China Southern Airlines Company 600029 ¥5.08 ¥1.28 −75%
Deutsche Lufthansa AG LHA €7.99 €18.94 +137%

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Frequently asked questions

Is China Airlines Ltd (2610) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of 14.65 TWD versus a price of 20.45 TWD, about −28% upside (overvalued).
What is the fair value of 2610?
Our model-based fair value for China Airlines Ltd is 14.65 TWD (as of Aug 30, 2026), built from audited fundamentals. The current price: 20.45 TWD.
What is the quality score of 2610?
China Airlines Ltd has a Quality Score of 36/100. 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 revenue of China Airlines Ltd (2610)?
China Airlines Ltd reported trailing-twelve-month revenue of about 213B TWD (latest available figure, as of Aug 30, 2026).
What is the net profit margin of 2610?
The net profit margin of China Airlines Ltd is about 7.4%, meaning it keeps roughly 7.4% of revenue as net income. Based on the latest reported figures.
Does China Airlines Ltd pay a dividend?
China Airlines Ltd currently shows a dividend yield of about 4.01% relative to its recent price (as of Aug 30, 2026).
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