Bank of China Limited (601988) Fair Value & Analysis
Financial Services · CN · Market cap 1.9T CNY
Fair value as of: Aug 13, 2026
From 6 valuation models · updated yesterday
Fair value updated Aug 13, 2026, revised from ¥9.80 to ¥11.24 (+14.7%) since Jul 15, 2026.
A solid business, screening 91% undervalued on our models.
What matters now
- The price is below even our cautious bear case (¥8.43). The market is more pessimistic than our downside scenario.
- Solid quality (58/100) 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)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range ¥2.61 – ¥6.29 · fair‑value band ¥8.43 – ¥14.05 · the ¥5.88 price screens below the ¥11.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Bank of China Limited (601988) currently trades at ¥5.88, while our model-based Fair Value estimate is ¥11.24, implying the stock looks roughly 91.2% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
Over the trailing twelve months, Bank of China Limited generated revenue of 567B CNY at a net margin of 43.3%. Revenue grew 5.9% year over year. It earns a return on equity of 8.4%. The balance sheet holds a net cash position of 1.6T CNY. Fundamentals as of Aug 13, 2026
Our scenario range runs from ¥8.43 (bear case) to ¥14.05 (bull case); at ¥5.88, 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 about 8% below its 52-week high and 15% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -15% fair-value upside, at 91%, 601988 screens cheaper 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.
All 6 models by family
Widest divergence: Multiples (¥9.80) versus Asset-Based (¥6.37). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 62
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
Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. The company operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other.
Full company description
Bank of China Limited, together with its subsidiaries, provides various banking and financial services in Chinese Mainland, Hong Kong, Macao, Taiwan, and internationally. The company operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other. The Corporate Banking segment provides current accounts, deposits, overdrafts, loans, payments and settlements, trade-related products, and other credit facilities, as well as foreign currency, derivative, and wealth management products for corporate customers, government authorities, and financial institutions. The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers. The Treasury Operations segment offers foreign exchange transactions, customer-based interest rate, and foreign exchange derivative transactions, as well as money market transactions, proprietary trading, and asset and liability management. The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services. The Insurance segment provides underwriting services for general and life insurance business, and insurance agency services. In addition, it operates debt-to-equity swaps and other supporting, and aircraft and financial leasing business. The company was founded in 1912 and is headquartered in Beijing, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Bank of China Limited reported revenue of ¥657B in FY2025 versus ¥968B in FY2021, a compound −9.2%/yr. Reported net income was ¥243B in FY2025, compounding +2.9%/yr from FY2021.
of which total revenue +11.2 pp · buybacks/dilution −0.9 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).
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Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Is Bank of China (SEHK:3988) Trading At A Premium To Fair Value?
- Is Bank of China (BACHY) Stock Undervalued Right Now?
- Synlait strikes deal with banks amid turnaround plan
- Commonwealth LNG Final Investment Decision Attracts Global Syndicate of Leading Banks
Peer Group
Banks - Diversified · 47 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.
Valuation Multiples vs Banks - Diversified median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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 - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| JPMorgan Chase & Co JPM | $365.18 | $217.97 | -40% |
| Bank of America Corporation BAC | $64.81 | $50.87 | -22% |
| China Construction Bank Corporation 601939 | ¥10.24 | ¥18.21 | +78% |
| Industrial and Commercial Bank of China Limited 601398 | ¥7.52 | ¥14.44 | +92% |
| HSBC Holdings HBCN | 1,610 MXN | 1,364 MXN | -15% |
| Agricultural Bank of China Limited 601288 | ¥6.56 | ¥12.94 | +97% |
| Banco Santander, S.A SAN | 55.29 PLN | 31.78 PLN | -43% |
| UBS Group UBSN | 939.75 MXN | 565.49 MXN | -40% |
| Barclays PLC BCSN | 475.00 MXN | 332.60 MXN | -30% |
| Bank of Communications Co 601328 | ¥6.91 | ¥13.82 | +100% |
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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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