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OVERSEA-CHINESE BANKING CORP (O39) Fair Value & Analysis

Financial Services · SG · Market cap 129B SGD (≈ $102B) · ISIN SG1S04926220

What is OVERSEA-CHINESE BANKING CORP really worth?

OC OVERSEA-CHINESE BANKING CORP O39 · SG
Price32.27 SGD
Fair Value19.80 SGD
Upside−38.6%
Quality58/100

A solid business, but trading 63% above our fair value of 19.80 SGD.

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Strengths

Healthy Growth (revenue 5y +7.6 %/yr)
Highly profitable · 53.2% net margin
Low debt · generates free cash flow
Wide moat 69/100

Risks

!Mixed vs. peers (6/14)
!Evidence only medium, so the estimate is less certain
!Weak on future: 25 out of 100
Evidence: Medium Range 14.85 SGD – 24.75 SGD

Fair value as of: Aug 30, 2026

From 6 valuation models · updated 6 days ago

Share price +12.7% 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 sits above even our optimistic bull case (24.75 SGD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (58/100) 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.

Price vs Fair Value (5 years)

32.27 SGD 8.50 SGD Fair Value 19.80 SGD Jun 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 8.50 SGD – 32.27 SGD · fair‑value band 14.85 SGD – 24.75 SGD · the 32.27 SGD price screens above the 19.80 SGD 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

OVERSEA-CHINESE BANKING CORP (O39) currently trades at 32.27 SGD, while our model-based Fair Value estimate is 19.80 SGD, implying the stock looks roughly 63.0% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of 19.47 SGD per share, and 0 of the 6 models we run sit above the 32.27 SGD price. Bear case: the Asset-Based group reads lowest at 9.32 SGD, and 6 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, OVERSEA-CHINESE BANKING CORP generated revenue of 14.1B SGD at a net margin of 53.2%. Revenue grew 4.9% year over year. It earns a return on equity of 12.2%. Net debt stands at 137M SGD. Fundamentals as of Aug 30, 2026

Our scenario range runs from 14.85 SGD (bear case) to 24.75 SGD (bull case); at 32.27 SGD, 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 115% 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 −39%, O39 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 1.12 SGD per share, which is 5.7 % 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 12.89 SGD 14.96 SGD 25.60 SGD 74
Gordon GGM 9.29 SGD 19.33 SGD 30.66 SGD 66
DDM Multi-Stage 9.29 SGD 15.35 SGD 20.28 SGD 66
All 6 models by family
Dividend Discount
Gordon GGM 9.29 SGD 19.33 SGD 30.66 SGD 66
DDM Multi-Stage 9.29 SGD 15.35 SGD 20.28 SGD 66
Multiples
P/E Multiple 16.12 SGD 21.49 SGD 26.86 SGD 63
P/B Multiple 14.60 SGD 19.47 SGD 24.34 SGD 55
Asset-Based
NCAV (Graham) 6.95 SGD 9.32 SGD 13.91 SGD 54
Economic Profit
Residual Income best evidence 12.89 SGD 14.96 SGD 25.60 SGD 74

Widest divergence: Multiples (19.47 SGD) versus Asset-Based (9.32 SGD). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 19.6
P/S ratio 9.99 P/E × margin
EPS (TTM) 1.65 SGD price ÷ EPS = P/E 19.6
Dividend yield 4.2% payout 82.7%
Net margin 51.1% FY2025
Return on equity 12.2% TTM
More key figures
Profitability
Return on assets (EBIT) 1.1% avg 5y
Operating margin 58.3% TTM
Growth
Revenue (TTM) 14.1B SGD TTM
Revenue growth (YoY) +4.9% 3y avg +9.1%
EPS growth (YoY) +2.7%
Balance sheet & cash flow
Free cash flow 8.1B SGD FY2025
Net debt 137M SGD FY2020 · ≈ 0.0 yrs of FCF

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

Quality Score breakdown

Overall quality 58/100

Of which business quality 55 · Market factors (momentum, volatility) 99

Profitability 36
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 85
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 99
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 83
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

Oversea-Chinese Banking Corporation Limited, together with its subsidiaries, provides financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. It operates through Global Consumer/Private Banking, Global Wholesale Banking, Global Markets and Insurance segments.

Full company description

Oversea-Chinese Banking Corporation Limited, together with its subsidiaries, provides financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. It operates through Global Consumer/Private Banking, Global Wholesale Banking, Global Markets and Insurance segments. The company's Global Consumer/Private Banking segment provides checking accounts, savings and fixed deposits, consumer loans such as housing loans and other personal loans, credit cards, investments and wealth management products. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital and trade financing, as well as customized and structured equity-linked financing. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as offers structured treasury products, digital assets, brokerage services, and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

OVERSEA-CHINESE BANKING CORP reported revenue of 14.5B SGD in FY2025 versus 10.5B SGD in FY2021, a compound +8.5%/yr. Reported net income was 7.4B SGD in FY2025, compounding +11.2%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
14.5B SGD
Latest YoY
+0.7%
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.
+9.1%
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.
+7.6%
Avg. revenue growth/yr (12Y) 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.
+7.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+13.1% (8.9 + 4.2)
Revenue +8.5%/yr
FY21 10.5B SGD
FY22 11.2B SGD
FY23 13.4B SGD
FY24 14.4B SGD
FY25 14.5B SGD
Net income +11.2%/yr
FY21 4.9B SGD
FY22 5.5B SGD
FY23 7.0B SGD
FY24 7.6B SGD
FY25 7.4B SGD

O39 screens 63% overvalued. Compare with DBS Group →

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Cite: Fair Value Calculator (2026). "OVERSEA-CHINESE BANKING CORP Fair Value". https://www.fairvalue-calculator.com/stock/O39

Earlier news

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

Peer Group

Banks - Regional · 1071 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 58 · Above median
Fair Value upside −39% · Bottom 25%
Return on equity (TTM) 12% · Above median
Return on assets 1% · Above median
Net margin (TTM) 53% · Top 25%
Operating margin (TTM) 58% · Top 25%
Revenue growth 5% · Below median
Dividend yield (TTM) 4.2% · Top 25%
Debt / equity 0.39× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 19.6× · Pricier than 75% of peers
P/B 1.63× · Pricier than 75% of peers
P/S (TTM) 7.19× · Pricier than 75% of peers
P/FCF 12.5× · Pricier than median
PEG 3.26× · Pricier than 75% of peers

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 33
FUTURE25 · sector 45
PAST49 · sector 41
HEALTH81 · sector 85
DIVIDEND85 · sector 51

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

Insider activity: 35/100

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

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
CaixaBank, S.A CABK €13.52 €8.85 −35%
The PNC Financial Services Group PNC $242.22 $192.40 −21%

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Frequently asked questions

Is OVERSEA-CHINESE BANKING CORP (O39) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of 19.80 SGD versus a price of 32.27 SGD, about −39% upside (overvalued).
What is the fair value of O39?
Our model-based fair value for OVERSEA-CHINESE BANKING CORP is 19.80 SGD (as of Aug 30, 2026), built from audited fundamentals. The current price: 32.27 SGD.
What is the quality score of O39?
OVERSEA-CHINESE BANKING CORP has a Quality Score of 58/100. 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 OVERSEA-CHINESE BANKING CORP (O39)?
OVERSEA-CHINESE BANKING CORP reported trailing-twelve-month revenue of about 14.1B SGD (latest available figure, as of Aug 30, 2026).
What is the net profit margin of O39?
The net profit margin of OVERSEA-CHINESE BANKING CORP is about 53.2%, meaning it keeps roughly 53.2% of revenue as net income. Based on the latest reported figures.
Does OVERSEA-CHINESE BANKING CORP pay a dividend?
OVERSEA-CHINESE BANKING CORP currently shows a dividend yield of about 4.23% relative to its recent price (as of Aug 30, 2026).
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