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China Construction Bank Co (601939) Fair Value & Analysis

Financial Services · CN · Market cap 2.7T CNY (≈ $397B) · ISIN CNE100000742

What is China Construction Bank Co really worth?

CC China Construction Bank Co 601939 · SHG
Price¥10.98
Fair Value¥18.21
Upside+65.9%
Quality46/100

Below-average quality, trading 40% below our fair value of ¥18.21.

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Strengths

Highly profitable · 55.6% net margin
Ranks above peers (11/14)

Risks

!Expensive Growth (revenue 5y +19.3 %/yr)
!Low debt · negative free cash flow
!Moderate moat 63/100
!Weak on future: 25 out of 100

For context

·3.54% dividend yield
Evidence: High Range ¥13.66 – ¥22.76

Fair value as of: Aug 19, 2026

From 6 valuation models · updated 16 days ago

Share price +10.2% 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 (¥13.66). The market is more pessimistic than our downside scenario.
  • Solid quality (46/100) 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)

¥11.14 ¥4.92 Fair Value ¥18.21 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range ¥4.92 – ¥11.14 · fair‑value band ¥13.66 – ¥22.76 · the ¥10.98 price screens below the ¥18.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

China Construction Bank Co (601939) currently trades at ¥10.98, while our model-based Fair Value estimate is ¥18.21, implying the stock looks roughly 39.7% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ¥17.20 per share, and 3 of the 6 models we run sit above the ¥10.98 price. Bear case: the Dividend Discount group reads lowest at ¥7.27, and 3 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, China Construction Bank Co generated revenue of 614B CNY at a net margin of 55.6%. Revenue grew 5.0% year over year. It earns a return on equity of 9.6%. Net debt stands at 7.0T CNY. Fundamentals as of Aug 19, 2026

Our scenario range runs from ¥13.66 (bear case) to ¥22.76 (bull case); at ¥10.98, 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 29% 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 66%, 601939 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 ¥0.6190 per share, which is 3.4 % 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 ¥12.16 ¥13.53 ¥22.07 75
DDM Multi-Stage ¥4.06 ¥7.27 ¥9.24 66
Gordon GGM ¥4.06 ¥8.87 ¥14.92 65
All 6 models by family
Dividend Discount
Gordon GGM ¥4.06 ¥8.87 ¥14.92 65
DDM Multi-Stage ¥4.06 ¥7.27 ¥9.24 66
Multiples
P/E Multiple ¥12.90 ¥17.20 ¥21.50 63
P/B Multiple ¥14.45 ¥19.26 ¥24.08 55
Asset-Based
NCAV (Graham) ¥6.88 ¥9.22 ¥13.76 54
Economic Profit
Residual Income best evidence ¥12.16 ¥13.53 ¥22.07 75

Widest divergence: Multiples (¥17.20) versus Dividend Discount (¥7.27). Highest evidence: Residual Income (75).

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Key figures & financial health

P/E ratio 7.8 as of Jul 18, 2026
P/S ratio 1.95 P/E × margin
EPS (TTM) ¥1.30 price ÷ EPS = P/E 7.8
Dividend yield 3.5% payout 29.9%
Net margin 24.9% FY2025
Return on equity 9.6% TTM
More key figures
Profitability
Return on assets (EBIT) 1.1% avg 5y
Operating margin 68.4% TTM
Growth
Revenue (TTM) 614B CNY TTM
Revenue growth (YoY) +5.0% 3y avg +30.2%
Balance sheet & cash flow
Free cash flow −2.4T CNY FY2025
Net debt 7.0T CNY FY2025

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 38 · Market factors (momentum, volatility) 73

Profitability 34
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 77
Distance to the 52-week high (market factor)
Net Issuance 78
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 Construction Bank Corporation engages in the provision of various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments.

Full company description

China Construction Bank Corporation engages in the provision of various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments. The company offers corporate and personal loans; trade financing; deposit taking and wealth management, agency, financial consulting and advisory, cash management, remittance and settlement, guarantee, and investment banking services to individuals, corporations, government agencies, and financial institutions. It is also involved in inter-bank deposit and placement transactions, repurchase and resale transactions, and invests in debt securities; trades in derivatives and foreign currencies; precious metal trading; and custody services. In addition, the company provides finance leasing, transfer and purchase of finance lease assets, and fixed-income investment; motor vehicle, business and household property, construction and engineering, liability insurance, hull and cargo, and short-term health and accidental injury insurance, as well as reinsurance; and cost consulting, whole-process engineering consulting, project management, investment consulting, and bidding agency services; and debt-to-equity swaps and relevant supporting businesses. Further, it engages in private equity investment and management of development funds and other private equity funds; investment banking related services, such as sponsoring and underwriting of public offerings, corporate merger and acquisition and restructuring, direct investment, asset management, and securities brokerage and market research; house rental business; raising and selling of funds; management of annuity and pension funds; and pension advisory service. China Construction Bank Corporation was founded in 1954 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

China Construction Bank Co reported revenue of 1.4T CNY in FY2025 versus 656B CNY in FY2021, a compound +20.0%/yr. Reported net income was 339B CNY in FY2025, compounding +2.9%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.4T CNY
Latest YoY
+123.5%
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.
+30.2%
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.
+19.3%
Avg. revenue growth/yr (24Y) 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.
+11.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.6% (4.1 + 3.5)
Revenue +20.0%/yr
FY21 656B CNY
FY22 615B CNY
FY23 609B CNY
FY24 608B CNY
FY25 1.4T CNY
Net income +2.9%/yr
FY21 303B CNY
FY22 325B CNY
FY23 333B CNY
FY24 336B CNY
FY25 339B CNY
Character of growth · EPS growth decomposed (2014-2025) +4.2 % p.a.
Revenue per share +6.3 %

of which total revenue +6.5 % · buybacks/dilution −0.1 %

EBIT margin −4.3 %
Tax rate +1.4 %
Residual (interest, one-offs) +1.0 %

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 Construction Bank Co Fair Value". https://www.fairvalue-calculator.com/stock/601939

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 46 · Bottom 25%
Fair Value upside +66% · Top 25%
Return on equity (TTM) 10% · Below median
Return on assets 1% · Above median
Net margin (TTM) 56% · Top 25%
Operating margin (TTM) 68% · Top 25%
Revenue growth 5% · Above median
Dividend yield (TTM) 3.5% · Above median
Debt / equity 0.22× · Lower than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 7.8× · Cheaper than 75% of peers
P/B 0.75× · Cheaper than median
P/S (TTM) 4.33× · Pricier than 75% of peers
EV/EBITDA 0.9× · Cheaper than 75% of peers
PEG 1.33× · 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
FUTURE25 · sector 25
PAST38 · sector 42
HEALTH89 · sector 48
DIVIDEND71 · 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 19, 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%
Industrial and Commercial Bank of China Limited 601398 ¥7.86 ¥14.44 +84%
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 China Construction Bank Co (601939) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of ¥18.21 versus a price of ¥10.98, about +66% upside (undervalued).
What is the fair value of 601939?
Our model-based fair value for China Construction Bank Co is ¥18.21 (as of Aug 19, 2026), built from audited fundamentals. The current price: ¥10.98.
What is the quality score of 601939?
China Construction Bank Co has a Quality Score of 46/100. 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 Construction Bank Co (601939)?
China Construction Bank Co reported trailing-twelve-month revenue of about 614B CNY (latest available figure, as of Aug 19, 2026).
What is the net profit margin of 601939?
The net profit margin of China Construction Bank Co is about 55.6%, meaning it keeps roughly 55.6% of revenue as net income. Based on the latest reported figures.
Does China Construction Bank Co pay a dividend?
China Construction Bank Co currently shows a dividend yield of about 3.54% relative to its recent price (as of Aug 19, 2026).
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