Hyundai Motor Securities현대차증권
001500 · KOSPI · ₩001500 · 현대차증권
Valuation model · P/B vs ROE (excess return)
Banks, insurers and brokers don't suit a cash flow model (borrowing and lending is their business), so we value them on book value and return on equity: P/B vs ROE.
Fair value per share
₩5,315
vs the current price (₩6,960)
- Cost of equity
- 9.6%
- Fair P/B
- 0.22×
- P/B now
- 0.29×
Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.
Bear / Base / Bull
- Bear
- —
- Base
- ₩5,315
- −23.6%
- Bull
- ₩13,318
- +91.3%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 3.7%
Yearly profit as a share of shareholders' equity.
Default: average return on equity of the last 3 annual reports.
- 2%
How fast book value and profits grow over the long run.
Default: close to the economy's long-run growth.
Discount rate
- 4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: 1.0. Measured beta is 0.78, but against a KOSPI dominated by chipmakers that understates a bank's or insurer's risk, so we use at least the market's.
- 5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Starting point
- Net debt (borrowings and leases − cash and deposits)
- ₩8T
- Equity (book value)
- ₩1.5T
- Book value per share ₩23,785
- Shares
- 61,833,044
- Share price
- ₩6,960
- Market cap
- ₩430B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 1.7% | 2.7% | 3.7% | 4.7% | 5.7% |
|---|---|---|---|---|---|
| 8.6% | — | ₩2,520 | ₩6,119 | ₩9,718 | ₩13,318 |
| 9.1% | — | ₩2,342 | ₩5,689 | ₩9,035 | ₩12,381 |
| 9.6% | — | ₩2,188 | ₩5,315 | ₩8,441 | ₩11,567 |
| 10.1% | — | ₩2,053 | ₩4,987 | ₩7,920 | ₩10,854 |
| 10.6% | — | ₩1,934 | ₩4,697 | ₩7,460 | ₩10,224 |
Now (TTM)
- Market cap
- ₩430B
- Enterprise value
- ₩8.4T
- P/E
- 5.6×
- P/B
- 0.3×
- P/S
- —
- EV/EBITDA
- 98.9×
- Dividend yield
- 5.3%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩7,920 | ₩6,653 | ₩7,682 |
| Market cap | ₩490B | ₩411B | ₩475B |
| P/E | 8.5× | 11.4× | 8.9× |
| P/B | 0.3× | 0.3× | 0.4× |
| P/S | — | 0.2× | 0.3× |
| EV/EBITDA | 87.9× | 97.4× | 87.4× |
| Dividend yield | 4.7% | 2.4% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Hyundai Motor Securities | 5.6× | 0.3× | — | 98.9× | 5.3% |
| Mirae Asset Securities | 3.5× | 0.8× | 0.3× | — | 1.2% |
| NH Investment & Securities | 5.5× | 0.8× | — | — | 5.7% |
| Samsung Securities | 4.8× | 0.8× | — | — | 5.1% |
| KIWOOM Securities | 3.3× | 0.7× | 0.2× | 21.5× | 5.3% |
| Samsung Card | 7.3× | 0.5× | — | 28.4× | 6.9% |
| Macquarie Korea Infrastructure Fund | — | — | — | — | — |
| Similar companies (median) | 4.8× | 0.8× | 0.2× | 24.9× | 5.3% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Hyundai Motor Securities / 현대차증권 / 001500 / KRX:001500
Source: KRX statistical information