Shinyoung Securities신영증권
001720 · KOSPI · ₩001720 · 신영증권
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
₩90,058
vs the current price (₩120,400)
- Cost of equity
- 9.5%
- Fair P/B
- 0.75×
- P/B now
- 1.00×
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
- ₩51,090
- −57.6%
- Base
- ₩90,058
- −25.2%
- Bull
- ₩141,001
- +17.1%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 7.6%
Yearly profit as a share of shareholders' equity.
Default: average return on equity of the last 2 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
- 4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: 1.0. Measured beta is 0.74, 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)
- ₩6.6T
- Equity (book value)
- ₩2T
- Book value per share ₩120,742
- Shares
- 16,440,000
- Share price
- ₩120,400
- Market cap
- ₩2T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 5.6% | 6.6% | 7.6% | 8.6% | 9.6% |
|---|---|---|---|---|---|
| 8.5% | ₩66,790 | ₩85,343 | ₩103,896 | ₩122,449 | ₩141,001 |
| 9.0% | ₩62,025 | ₩79,254 | ₩96,483 | ₩113,712 | ₩130,941 |
| 9.5% | ₩57,894 | ₩73,976 | ₩90,058 | ₩106,140 | ₩122,221 |
| 10.0% | ₩54,280 | ₩69,357 | ₩84,435 | ₩99,512 | ₩114,590 |
| 10.5% | ₩51,090 | ₩65,281 | ₩79,473 | ₩93,664 | ₩107,856 |
Now (TTM)
- Market cap
- ₩2T
- Enterprise value
- ₩8.6T
- P/E
- 14.1×
- P/B
- 1.0×
- P/S
- 0.6×
- EV/EBITDA
- —
- Dividend yield
- 4.2%
Over time (at each year end)
| 2025 | 2024 | |
|---|---|---|
| Price | ₩134,100 | ₩76,000 |
| Market cap | ₩2.2T | ₩1.2T |
| P/E | 20.3× | 8.8× |
| P/B | 1.3× | 0.8× |
| P/S | 0.9× | 0.5× |
| EV/EBITDA | — | — |
| Dividend yield | 3.7% | 5.9% |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Shinyoung Securities | 14.1× | 1.0× | 0.6× | — | 4.2% |
| Mirae Asset Securities | 3.6× | 0.9× | 0.3× | — | 1.2% |
| NH Investment & Securities | 5.8× | 0.8× | — | — | 5.4% |
| Samsung Securities | 4.9× | 0.8× | — | — | 5.0% |
| KIWOOM Securities | 3.3× | 0.8× | 0.2× | 21.5× | 5.2% |
| Samsung Card | 7.6× | 0.6× | — | 28.7× | 6.6% |
| Macquarie Korea Infrastructure Fund | — | — | — | — | — |
| Similar companies (median) | 4.9× | 0.8× | 0.2× | 25.1× | 5.2% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Shinyoung Securities / 신영증권 / 001720 / KRX:001720
Source: KRX statistical information