2412:TWSE

Chunghwa Telecom is trading at TWD 135.5, comfortably above its 20‑day (134.7), 50‑day (133.4) and 200‑day (132.7) moving averages, indicating a short‑term bullish price bias. However, the MACD histogram has turned negative and the signal line is bearish, while the RSI sits at a neutral 53, suggesting limited upside momentum. The DCF‑derived fair value of TWD 83.3 is far below the current price, and the trailing P/E of 27.2 dwarfs the industry average of 18.2, flagging the stock as significantly overvalued.
Fundamentally, revenue growth is modest at 0.5% YoY and EPS has hit an eight‑year high, but the dividend payout ratio exceeds 100% (5 TWD dividend on a TWD 4.98 EPS) raising concerns about sustainability. The balance sheet shows strong cash (TWD 57.5 B) offset by high debt (TWD 38.0 B) and a debt‑to‑equity of 9.5, while operating cash flow remains robust. Volatility over the past 30 days is 14% and beta is near zero, reflecting a stable but not highly responsive stock, and market sentiment is in “Extreme Greed” territory.