Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 18 May 2026
CHT· Communication Services
Chunghwa Telecom
Chunghwa Telecom is the calmest stock in the basket, a Taiwanese utility-like income vehicle priced 28x.
Buffett fit
Partial fit
Owner
50
Durability
80
Management
60
Price
36
Score updated 23 Oct 2026 · analysis from 18 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Communication Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Chunghwa privately for ten years is owning a bond with optionality.
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Through 2036, Chunghwa's position is as durable as Taiwanese regulatory continuity allows.
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Share count essentially flat (-0.01% per year) and of just 0.10 reflect a board treating the business as a custodial asset, not a growth engine.
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At 27.9x and a 4.7% owner-earnings yield, the price doesn't leave a against a Buffett opportunity cost.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 1Interest coverage of 175x is among the highest in the entire basket
- 2Net debt/EBITDA of just 0.014 means essentially no
- 3Profitable in every one of the last 5 years with worst EPS year at zero
- 4 of 20.5% reflects pricing discipline in a regulated market
Concerns
5- 1 of 27.9 is steep for 2% EPS growth
- 2 yield of 4.7% trails Treasury yields
- 35-year of 8.7% sits below cost of capital for many investors
- 4Revenue CAGR of 3.0% leaves little for shareholders
Price history
$48.72+23.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Chunghwa is Taiwan's dominant fixed-line and mobile carrier, with the kind of regulated, government-influenced market position that breeds stability over excitement. of 20.5% on a 35.8% gross line is utility-grade, high enough to fund the dividend, low enough that no upside surprises arrive. Revenue grew 3.0% per year, EPS at 2.0%, the kind of trajectory Japanese pension funds love. Interest coverage of 175x signals essentially zero financing risk.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Communication Services
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