Bank of China Ltd
SSE:601988
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Bank of China Ltd
SSE:601988
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Vessel Co Ltd
KOSDAQ:177350
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Intrinsic Value
The intrinsic value of Bank of China Ltd (601988) under the Base Case is 7.67 CNY per share.
Compared with the current market price of 7.06 CNY, the stock appears
Undervalued by 8% .
The intrinsic value is the average of valuations using the DCF method and multiples.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Bank of China Does
Bank of China is one of China’s large commercial banks. It takes deposits, makes loans, moves payments, and provides foreign exchange, trade finance, wealth management, and other banking services. Its main customers include individuals, small businesses, big companies, and government-linked borrowers, with a strong focus on clients that need cross-border banking between China and the rest of the world.
- Headquarters
- China CN
- Employees
- 313 746
- IPO date
- Jun 1, 2006
Bank of China has no economic moat
Rival banks can offer similar loans, deposits and payment services, leaving Bank of China competing on price and service rather than products customers cannot get elsewhere. Its size and state-backed reputation are strengths, but major Chinese competitors have comparable advantages, limiting its ability to earn more from otherwise similar banking services.
Read the full moat analysis
The intrinsic value for Bank of China Ltd (601988) under the Base Case is 7.67 CNY.
Compared with the current market price of 7.06 CNY, the stock appears Undervalued by 8% .