China Merchants Bank Co (FRA:M4B) Margin of Safety % (DCF FCF Based): 81.49% (As of Jun. 25, 2026)


FRA:M4B China Merchants Bank Co Ltd FRA:M4B
63 GF Score
Price €5.09
GF Value €5.44
Valuation Fairly Valued
! 2 Warning Signs
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What is China Merchants Bank Co Margin of Safety % (DCF FCF Based)?

China Merchants Bank Co FRA:M4B -2.00% 63 Margin of Safety % (DCF FCF Based) is 81.49% as of Jun. 25, 2026. GuruFocus rates FRA:M4B with a GF Score™ of 63/100 and a GF Value™ of €5.44 (Fairly Valued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), China Merchants Bank Co's Predictability Rank is 3.5-Stars. China Merchants Bank Co's intrinsic value calculated from the Discounted FCF model is €11.91 and current share price is €5.088. Consequently,

China Merchants Bank Co's Margin of Safety % (DCF FCF Based) using Discounted FCF model is 81.49%.

China Merchants Bank Co Margin of Safety % (DCF FCF Based) Competitor Comparison

For the Banks - Regional subindustry, China Merchants Bank Co's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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.

China Merchants Bank Co Margin of Safety % (DCF FCF Based) vs Banks Industry

For the Banks industry and Financial Services sector, China Merchants Bank Co's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where China Merchants Bank Co's Margin of Safety % (DCF FCF Based) falls into.


FRA:M4B
63GF Score
China Merchants Bank Co Ltd FRA:M4B
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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China Merchants Bank Co Margin of Safety % (DCF FCF Based) Calculation

China Merchants Bank Co's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(27.49-5.088)/27.49
=81.49 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of 81.49% mean?
China Merchants Bank Co (FRA:M4B) has a Margin of Safety % (DCF FCF Based) of 81.49% as of Jun. 25, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on China Merchants Bank Co.
Is China Merchants Bank Co's Margin of Safety % (DCF FCF Based) too high?
China Merchants Bank Co's current Margin of Safety % (DCF FCF Based) is 81.49%. Overall, China Merchants Bank Co has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's Margin of Safety % (DCF FCF Based) compare to competitors?
China Merchants Bank Co's Margin of Safety % (DCF FCF Based) of 81.49% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Banks company?
A good Margin of Safety % (DCF FCF Based) depends on the Banks industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on China Merchants Bank Co. China Merchants Bank Co's current Margin of Safety % (DCF FCF Based) is 81.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (FRA:M4B) is currently considered Fairly Valued. The stock's GF Value™ is €5.44, compared to a current price of €5.09 — trading 6.5% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is 81.49%. China Merchants Bank Co's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For China Merchants Bank Co (FRA:M4B), the current Margin of Safety % (DCF FCF Based) is 81.49% as of Jun. 25, 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 China Merchants Bank Co (FRA:M4B) Overvalued in 2026?

Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be undervalued. The current stock price of €5.09 is trading 6.5% below its estimated GF Value™ of €5.44. GuruFocus considers China Merchants Bank Co to be Fairly Valued.

Key valuation signals for FRA:M4B:

  • Margin of Safety % (DCF FCF Based): 81.49%
  • GF Value™: €5.44 vs. price of €5.09 (6.5% below fair value)
  • GF Score™: 63/100 with 2 warning signs

No single metric tells the full story. See the FRA:M4B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Merchants Bank Co Business Description

Address No. 7088, Shennan Boulevard, 26th Floor, China Merchants Bank Building, Futian District, Guangdong Province, Shenzhen, CHN, 518040
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
63GF Score

Get the complete analysis for FRA:M4B

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€5.09
Price
€5.44
GF Value