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Cathay Financial Holding Co (LSE:CFHS) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Cathay Financial Holding Co Forward PE Ratio Related Terms
Cathay Financial Holding Co Forward PE Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cathay Financial Holding Co Forward PE Ratio Chart
Cathay Financial Holding Co Annual Data
Trend
2018-12
2019-12
2020-12
2021-12
2022-12
2024-12
2025-12
Forward PE Ratio
11.31
9.01
9.12
7.14
13.87
9.06
8.86
Cathay Financial Holding Co Quarterly Data
2018-03
2018-06
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2024-12
2025-03
2025-06
2025-09
2025-12
Forward PE Ratio
10.38
9.68
11.31
11.99
12.03
10.43
9.01
9.53
9.67
8.68
9.12
6.10
6.84
6.53
7.14
7.79
7.86
9.46
13.87
13.81
9.06
9.48
10.65
9.23
8.86
LSE:CFHS vs AFL, MET, PRU: Forward PE Ratio Comparison
For the Insurance - Life subindustry, Cathay Financial Holding Co's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cathay Financial Holding Co Forward PE Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding Co's Forward PE Ratio falls into.
Cathay Financial Holding Co Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Cathay Financial Holding Co (LSE:CFHS) has a Forward PE Ratio of 8.01 as of Jul. 18, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cathay Financial Holding Co and its competitors. According to the industry distribution chart, Cathay Financial Holding Co ranks #135 out of 274 companies in the Insurance industry, placing it in the top 49.3%.
Is Cathay Financial Holding Co's Forward PE Ratio too high?
Cathay Financial Holding Co's current Forward PE Ratio is 8.01. The Insurance industry median Forward PE Ratio is 11.80. Cathay Financial Holding Co's value of 8.01 is 32.1% below this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #135 out of 274 companies in the Insurance industry, which is above the industry midpoint. Overall, Cathay Financial Holding Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's Forward PE Ratio compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #135 out of 274 companies for Forward PE Ratio. This puts Cathay Financial Holding Co in the upper half of its industry. The industry median Forward PE Ratio is 11.80. Cathay Financial Holding Co's value of 8.01 is 32.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Insurance company?
The median Forward PE Ratio among Insurance companies is 11.80, based on 274 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Financial Holding Co's current Forward PE Ratio of 8.01 is 32.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cathay Financial Holding Co and its competitors. For the Insurance industry, the median Forward PE Ratio is 11.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current Forward PE Ratio is 8.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current Forward PE Ratio of 8.01. The stock's GF Value™ is $15.11, compared to a current price of $19.20 — trading 27.1% above its estimated fair value. The current Forward PE Ratio is 8.01 and 32.1% below the Insurance industry median of 11.80. Cathay Financial Holding Co's overall GF Score™ is 54/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Cathay Financial Holding Co (LSE:CFHS), the current Forward PE Ratio is 8.01 as of Jul. 18, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 27.1% above its estimated GF Value™ of $15.11.
Key valuation signals for LSE:CFHS:
Forward PE Ratio: 8.01
GF Value™: $15.11 vs. price of $19.20 (27.1% above fair value)
Industry Position: 32.1% below the Insurance median (#135 of 274)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
54GF Score
Get the complete analysis for LSE:CFHS
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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