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Industrial and Commercial Bank of China Ltd (601398) Fair Value & Analysis

Financial Services · CN · Market cap 2.6T CNY (≈ $395B) · ISIN CNE000001P37

What is Industrial and Commercial Bank of China Ltd really worth?

IA Industrial and Commercial Bank of China Ltd 601398 · SHG
Price¥8.13
Fair Value¥14.44
Upside+77.6%
Quality53/100

A solid business, trading 44% below our fair value of ¥14.44.

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Strengths

Highly profitable · 55.2% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)
Wide moat 66/100

Risks

!Mixed Growth (revenue 5y +20.8 %/yr)
!Evidence only medium, so the estimate is less certain
!Weak on future: 17 out of 100

For context

·3.81% dividend yield
Evidence: Medium Range ¥10.83 – ¥18.05

Fair value as of: Aug 30, 2026

From 6 valuation models · updated 6 days ago

Share price +8.1% 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 (¥10.83). The market is more pessimistic than our downside scenario.
  • Solid quality (53/100) 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)

¥8.22 ¥3.33 Fair Value ¥14.44 Mar 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 ¥3.33 – ¥8.22 · fair‑value band ¥10.83 – ¥18.05 · the ¥8.13 price screens below the ¥14.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Industrial and Commercial Bank of China Ltd (601398) currently trades at ¥8.13, while our model-based Fair Value estimate is ¥14.44, implying the stock looks roughly 43.7% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ¥13.44 per share, and 4 of the 6 models we run sit above the ¥8.13 price. Bear case: the Dividend Discount group reads lowest at ¥6.95, and 2 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Industrial and Commercial Bank of China Ltd generated revenue of 673B CNY at a net margin of 55.2%. Revenue grew 3.4% year over year. It earns a return on equity of 8.9%. Net debt stands at 6.6T CNY. Fundamentals as of Aug 30, 2026

Our scenario range runs from ¥10.83 (bear case) to ¥18.05 (bull case); at ¥8.13, 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 near its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 78%, 601398 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 ¥0.4756 per share, which is 3.3 % 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 ¥9.78 ¥10.80 ¥16.36 74
DDM Multi-Stage ¥3.89 ¥6.95 ¥8.84 64
Gordon GGM ¥3.89 ¥8.48 ¥14.27 63
All 6 models by family
Dividend Discount
Gordon GGM ¥3.89 ¥8.48 ¥14.27 63
DDM Multi-Stage ¥3.89 ¥6.95 ¥8.84 64
Multiples
P/E Multiple ¥10.08 ¥13.44 ¥16.80 61
P/B Multiple ¥11.71 ¥15.61 ¥19.52 53
Asset-Based
NCAV (Graham) ¥5.58 ¥7.47 ¥11.15 52
Economic Profit
Residual Income best evidence ¥9.78 ¥10.80 ¥16.36 74

Widest divergence: Multiples (¥13.44) versus Dividend Discount (¥6.95). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 7.4 as of Jul 15, 2026
P/S ratio 1.76 P/E × margin
EPS (TTM) ¥1.01 price ÷ EPS = P/E 7.4
Dividend yield 3.8% payout 30.7%
Net margin 23.9% FY2025
Return on equity 8.9% TTM
More key figures
Profitability
Return on assets (EBIT) 1.1% avg 5y
Operating margin 65.7% TTM
Growth
Revenue (TTM) 673B CNY TTM
Revenue growth (YoY) +3.4% 3y avg +32.5%
EPS growth (YoY) +4.3%
Balance sheet & cash flow
Free cash flow 147B CNY FY2025
Net debt 6.6T CNY FY2025 · ≈ 44.9 yrs of FCF

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

Quality Score breakdown

Overall quality 53/100

Of which business quality 47 · Market factors (momentum, volatility) 72

Profitability 33
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 95
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

Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People's Republic of China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury Operations segments.

Full company description

Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People's Republic of China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury Operations segments. The Corporate Banking segment offers corporate loans, trade financing, deposit-taking activities, corporate wealth management services, custody services, and various types of corporate intermediary services, as well as corporate loans to corporations, government agencies, and financial institutions. Its Personal Banking segment provides personal loans, deposit-taking activities, card business, personal wealth management services, and various types of personal intermediary services to individual customers. The Treasury Operations segment engages in money market transactions, investment securities, and foreign exchange transaction activities. In addition, the company is involved in the fund raising, fund sales, asset management, and other businesses; financial leasing; insurance businesses, such as life, health, and accident insurance, as well as reinsurance; debt-for-equity swaps; and issuance of wealth management products, wealth management advisory, and consulting services. Industrial and Commercial Bank of China Limited was founded in 1984 and is headquartered in Beijing, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Industrial and Commercial Bank of China Ltd reported revenue of 1.5T CNY in FY2025 versus 658B CNY in FY2021, a compound +23.8%/yr. Reported net income was 369B CNY in FY2025, compounding +1.4%/yr from FY2021.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
1.5T CNY
Latest YoY
+133.8%
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.
+32.5%
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.
+20.8%
Avg. revenue growth/yr (23Y) 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.
+13.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.3% (3.5 + 3.8)
Revenue +23.8%/yr
FY21 658B CNY
FY22 663B CNY
FY23 658B CNY
FY24 660B CNY
FY25 1.5T CNY
Net income +1.4%/yr
FY21 348B CNY
FY22 361B CNY
FY23 364B CNY
FY24 366B CNY
FY25 369B CNY
Character of growth · EPS growth decomposed (2014-2025) +3.1 % p.a.
Revenue per share +5.8 %

of which total revenue +5.9 % · buybacks/dilution +0.0 %

EBIT margin −4.1 %
Tax rate +1.4 %
Residual (interest, one-offs) +0.2 %

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). "Industrial and Commercial Bank of China Ltd Fair Value". https://www.fairvalue-calculator.com/stock/601398

Earlier news

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

Peer Group

Banks - Diversified · 48 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 53 · Below median
Fair Value upside +78% · Top 25%
Return on equity (TTM) 9% · Below median
Return on assets 1% · Below median
Net margin (TTM) 55% · Top 25%
Operating margin (TTM) 66% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 3.8% · Above median
Debt / equity 0.19× · Lower than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 7.4× · Cheaper than 75% of peers
P/B 0.67× · Cheaper than 75% of peers
P/S (TTM) 3.93× · Pricier than median
P/FCF 2.7× · Cheaper than median
PEG 1.37× · Cheaper 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
VALUE100 · sector 14
FUTURE17 · sector 25
PAST36 · sector 42
HEALTH91 · sector 48
DIVIDEND76 · sector 70

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

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $354.22 $217.97 −38%
Bank of America Corporation BAC $61.17 $50.87 −17%
China Construction Bank Corporation 601939 ¥10.55 ¥18.21 +73%
HSBC Holdings HSBC $103.14 $75.89 −26%
Agricultural Bank of China Limited 601288 ¥6.79 ¥12.94 +91%
Royal Bank of Canada RY C$283.11 C$151.80 −46%
Bank of China Limited 601988 ¥6.14 ¥11.24 +83%
Wells Fargo & Company WFC $86.69 $79.60 −8%
Mitsubishi UFJ Financial Group MUFG $22.90 $20.50 −10%
Citigroup Inc C $132.90 $117.65 −11%

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Frequently asked questions

Is Industrial and Commercial Bank of China Ltd (601398) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ¥14.44 versus a price of ¥8.13, about +78% upside (undervalued).
What is the fair value of 601398?
Our model-based fair value for Industrial and Commercial Bank of China Ltd is ¥14.44 (as of Aug 30, 2026), built from audited fundamentals. The current price: ¥8.13.
What is the quality score of 601398?
Industrial and Commercial Bank of China Ltd has a Quality Score of 53/100. 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 Industrial and Commercial Bank of China Ltd (601398)?
Industrial and Commercial Bank of China Ltd reported trailing-twelve-month revenue of about 673B CNY (latest available figure, as of Aug 30, 2026).
What is the net profit margin of 601398?
The net profit margin of Industrial and Commercial Bank of China Ltd is about 55.2%, meaning it keeps roughly 55.2% of revenue as net income. Based on the latest reported figures.
Does Industrial and Commercial Bank of China Ltd pay a dividend?
Industrial and Commercial Bank of China Ltd currently shows a dividend yield of about 3.81% relative to its recent price (as of Aug 30, 2026).
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