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
₩89,191
vs the current price (₩123,500)
- Cost of equity
- 9.6%
- Fair P/B
- 0.74×
- P/B now
- 1.02×
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
- ₩50,655
- −59.0%
- Base
- ₩89,191
- −27.8%
- Bull
- ₩139,437
- +12.9%
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
- 4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: 1.0. Measured beta is 0.73, 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
- ₩123,500
- 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% |
|---|---|---|---|---|---|
| 8.6% | ₩66,049 | ₩84,396 | ₩102,743 | ₩121,090 | ₩139,437 |
| 9.1% | ₩61,385 | ₩78,437 | ₩95,488 | ₩112,540 | ₩129,592 |
| 9.6% | ₩57,337 | ₩73,264 | ₩89,191 | ₩105,117 | ₩121,044 |
| 10.1% | ₩53,789 | ₩68,731 | ₩83,672 | ₩98,614 | ₩113,555 |
| 10.6% | ₩50,655 | ₩64,726 | ₩78,797 | ₩92,867 | ₩106,938 |
Now (TTM)
- Market cap
- ₩2T
- Enterprise value
- ₩8.7T
- P/E
- 14.5×
- P/B
- 1.0×
- P/S
- 0.6×
- EV/EBITDA
- —
- Dividend yield
- 4.0%
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 | 14.5× | 1.0× | 0.6× | — | 4.0% |
| Mirae Asset Securities | 3.8× | 0.9× | 0.3× | — | 1.1% |
| NH Investment & Securities | 5.7× | 0.8× | — | — | 5.5% |
| Samsung Securities | 5.0× | 0.8× | — | — | 4.9% |
| KIWOOM Securities | 3.5× | 0.8× | 0.2× | 21.6× | 5.0% |
| Samsung Card | 7.3× | 0.5× | — | 28.4× | 6.9% |
| kakaopay | 52.7× | 2.3× | 4.0× | — | 0.0% |
| Similar companies (median) | 5.4× | 0.8× | 0.3× | 25.0× | 4.9% |
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