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Mega Financial Holding (2886) Fair Value & Analysis

Financial Services · TW · Market cap 682B TWD

MF Mega Financial Holding 2886 · TW
Price47.35 TWD
Fair Value33.80 TWD
Upside-28.6%
Quality60/100
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Mixed Growth
Highly profitable · 46.1% net margin
Low debt · generates free cash flow
3.72% dividend yield
Mixed vs. peers (8/15)
Wide moat 65/100
Evidence: High Range 25.35 TWD – 42.24 TWD Share as image

Fair value as of: Aug 14, 2026

From 6 valuation models · updated today

Fair value updated Aug 14, 2026, revised from 30.71 TWD to 33.80 TWD (+10.1%) since Jul 16, 2026. Share price +2.9% over the past month.

A solid business, but screening 29% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (42.24 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • 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)

53.10 TWD 25.32 TWD Fair Value 33.80 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range 25.32 TWD – 53.10 TWD · fair‑value band 25.35 TWD – 42.24 TWD · the 47.35 TWD price screens above the 33.80 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

Mega Financial Holding (2886) currently trades at 47.35 TWD, while our model-based Fair Value estimate is 33.80 TWD, implying the stock looks roughly 28.6% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Mega Financial Holding generated revenue of 78.9B TWD at a net margin of 46.1%. Revenue grew 12.0% year over year. It earns a return on equity of 9.4%. Net debt stands at 737B TWD. Fundamentals as of Aug 14, 2026

Our scenario range runs from 25.35 TWD (bear case) to 42.24 TWD (bull case); at 47.35 TWD, the current price sits above 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 near its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 47% fair-value upside, at -29%, 2886 screens richer 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 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 23.08 TWD 25.30 TWD 34.32 TWD 76
Gordon GGM 13.84 TWD 17.27 TWD 20.98 TWD 70
P/E Multiple 23.03 TWD 30.71 TWD 38.38 TWD 63
All 6 models by family
Dividend Discount
Gordon GGM 13.84 TWD 17.27 TWD 20.98 TWD 70
DDM Multi-Stage 13.84 TWD 18.88 TWD 25.36 TWD 61
Multiples
P/E Multiple 23.03 TWD 30.71 TWD 38.38 TWD 63
P/B Multiple 27.77 TWD 37.03 TWD 46.29 TWD 55
Asset-Based
NCAV (Graham) 13.23 TWD 17.72 TWD 26.45 TWD 50
Economic Profit
Residual Income 23.08 TWD 25.30 TWD 34.32 TWD 76

Widest divergence: Multiples (30.71 TWD) versus Dividend Discount (17.27 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 78.9B TWD
Revenue growth (YoY) +12.0%
Net margin 46.1%
Return on equity 9.4%
Free cash flow 159B TWD FY2025
P/E ratio 20.1
More key figures
Operating margin 55.1%
EPS (TTM) 2.36 TWD
Dividend yield 3.7%
EPS growth (YoY) +16.5%
Net debt 737B TWD FY2025

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 58 · Market factors (momentum, volatility) 74

Profitability 33
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 72
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

Mega Financial Holding Co., Ltd. provides various financial services in Taiwan. It offers brokerage, dealing and underwriting of short-term debt instruments and financial debentures; notary services for short-term debt instruments and financial debentures; guarantee or endorsement services for short-term debt instruments; brokerage for inter-bank call …

Full company description

Mega Financial Holding Co., Ltd. provides various financial services in Taiwan. It offers brokerage, dealing and underwriting of short-term debt instruments and financial debentures; notary services for short-term debt instruments and financial debentures; guarantee or endorsement services for short-term debt instruments; brokerage for inter-bank call loans; proprietary trading in government bonds; and foreign and domestic securities brokerage, securities dealing, securities underwriting, and future services. The company also provides fire, marine cargo, marine hull, auto, aviation, engineering, liability, credit and bond, and accidental insurance products; acquisition and underwriting services, including acquiring NPLs, real estate investment, and corporate restructuring; and collection solutions. In addition, it is involved in the venture capital and leverage buy-out investment; and issuing and managing equity fund, fixed income fund, and other investment trust instruments. Further, the company engages in deposits loan and guarantee business, trading financing, remittance business, offshore banking business, short-term bills business, foreign exchange trading, safety deposit box business, book-entry government bond business, various kinds of ATM debit card business and electronic banking, and internet banking business; credit card business, consumer loans, student loans, home purchase and maintenance loans, private banking, car loans, and credit insurance consumer loans; equity and investments, securities underwriting business, as well as financial planning and consulting services; and money trust, custodian services, trusteeship for bond issuances, and distribution of trust fund beneficiary certificates. The company was formerly known as CTB Financial Holding Co., Ltd. and changed its name to Mega Financial Holding Co., Ltd. in December 2002. The company was incorporated in 2002 and is headquartered in Taipei, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mega Financial Holding reported revenue of 39.5B TWD in FY2025 versus 69.3B TWD in FY2021, a compound −13.1%/yr. Reported net income was 35.0B TWD in FY2025, compounding +8.0%/yr from FY2021.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
39.5B TWD
Avg. 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.
+36.3%
Avg. 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.
+11.5%
Avg. 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.
+6.2%
Revenue −13.1%/yr
FY21 69.3B TWD
FY22 86.9B TWD
FY23 158B TWD
FY24 175B TWD
FY25 39.5B TWD
Net income +8.0%/yr
FY21 25.7B TWD
FY22 18.3B TWD
FY23 33.2B TWD
FY24 34.8B TWD
FY25 35.0B TWD
Character of growth · EPS growth decomposed (2014-2025) +1.4 % p.a.
Revenue per share +4.3 pp

of which total revenue +5.4 pp · buybacks/dilution −1.2 pp

EBIT margin −3.4 pp
Tax rate +0.7 pp
Residual (interest, one-offs) −0.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

2886 screens 29% overvalued. Compare with PT Bank Central Asia Tbk →

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Cite: Fair Value Calculator (2026). "Mega Financial Holding Fair Value". https://www.fairvalue-calculator.com/stock/2886

Peer Group

Banks - Regional · 1086 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 61 · Top 25%
Fair Value upside −29% · Bottom 25%
Return on equity (TTM) 9% · Below median
Return on assets 1% · Below median
Net margin (TTM) 46% · Top 25%
Operating margin (TTM) 55% · Top 25%
Revenue growth 12% · Above median
Dividend yield (TTM) 3.7% · Above median
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 20.1× · Pricier than 75% of peers
P/B 1.74× · Pricier than 75% of peers
P/S (TTM) 8.65× · Pricier than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 6.7× · Cheaper than median
PEG 1.54× · Pricier than median

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 0 · sector 33
FUTURE 60 · sector 44
PAST 37 · sector 41
HEALTH 94 · sector 85
DIVIDEND 74 · sector 49

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

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 Aug 14, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,130 IDR 6,067 IDR +47%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

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Frequently asked questions

Is Mega Financial Holding (2886) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of 33.80 TWD versus a price of 47.35 TWD, about −29% (overvalued).
What is the fair value of 2886?
Our model-based fair value for Mega Financial Holding is 33.80 TWD (as of Aug 14, 2026), built from audited fundamentals. The current price is 47.35 TWD.
What is the quality score of 2886?
Mega Financial Holding 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 revenue of Mega Financial Holding (2886)?
Mega Financial Holding reported trailing-twelve-month revenue of about 78.9B TWD (latest available figure, as of Aug 14, 2026).
What is the net profit margin of 2886?
The net profit margin of Mega Financial Holding is about 46.1%, meaning it keeps roughly 46.1% of revenue as net income. Based on the latest reported figures.
Does Mega Financial Holding pay a dividend?
Mega Financial Holding currently shows a dividend yield of about 4.16% relative to its recent price (as of Aug 14, 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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