Chunghwa Telecom (2412.TW)
Communications · TWSE · Taiwan
Fundamentals
Valuation and ratings
Chunghwa Telecom trades at NT$138.00, which is 52% above the NT$66.77 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 26.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Chunghwa Telecom
Chunghwa Telecom Co., Ltd., together with its subsidiaries, operates as an integrated telecommunications service provider in Taiwan and internationally. The company operates through Consumer Business, Enterprise Business, International Business, and Others segments. Its services primarily include mobile, fixed-line, information and communication technology (ICT), and sales and other services. The company provides mobile services, including prepaid and postpaid plans; fixed-line services, such as fixed broadband and voice, leased line, video, and satellite services; and fixed broadband services comprising broadband access, data communication, and Wi-Fi services. It also offers ICT services consisting of cloud, content delivery network, advanced networks defense system, and web application firewall. In addition, it distributes and sells mobile handsets and wearable devices on its mobile network to customers through its directly owned stores, online store, and third-party retailers, as well as offers interconnection services. The company was incorporated in 1996 and is headquartered in Taipei City, Taiwan.
2412.TW passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Chunghwa Telecom (2412.TW) undervalued?
Against our discounted cash flow estimate of NT$66.77, 2412.TW at NT$138.00 is 52% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 2412.TW's P/E ratio?
2412.TW trades at 26.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.