Korean Reinsurance코리안리
003690 · KOSPI · ₩003690 · 코리안리
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
₩21,510
vs the current price (₩13,960)
- Cost of equity
- 9.5%
- Fair P/B
- 0.95×
- P/B now
- 0.61×
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
- ₩13,635
- −2.3%
- Base
- ₩21,510
- +54.1%
- Bull
- ₩31,806
- +127.8%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 9.1%
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
- 4.01%
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 0.6, 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)
- −₩266B
- Equity (book value)
- ₩4T
- Book value per share ₩22,747
- Shares
- 176,721,031
- Share price
- ₩13,960
- Market cap
- ₩2.5T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 7.1% | 8.1% | 9.1% | 10.1% | 11.1% |
|---|---|---|---|---|---|
| 8.5% | ₩17,825 | ₩21,321 | ₩24,816 | ₩28,311 | ₩31,806 |
| 9.0% | ₩16,554 | ₩19,799 | ₩23,045 | ₩26,291 | ₩29,537 |
| 9.5% | ₩15,451 | ₩18,481 | ₩21,510 | ₩24,540 | ₩27,570 |
| 10.0% | ₩14,486 | ₩17,327 | ₩20,167 | ₩23,008 | ₩25,848 |
| 10.5% | ₩13,635 | ₩16,309 | ₩18,982 | ₩21,656 | ₩24,329 |
Now (TTM)
- Market cap
- ₩2.5T
- Enterprise value
- ₩2.2T
- P/E
- 7.1×
- P/B
- 0.6×
- P/S
- —
- EV/EBITDA
- —
- Dividend yield
- 4.1%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩11,540 | ₩7,950 | ₩6,068 |
| Market cap | ₩2T | ₩1.4T | ₩1.1T |
| P/E | 6.3× | 4.4× | 3.8× |
| P/B | 0.6× | 0.4× | 0.3× |
| P/S | — | — | — |
| EV/EBITDA | — | — | — |
| Dividend yield | 4.9% | 6.5% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Korean Reinsurance | 7.1× | 0.6× | — | — | 4.1% |
| Samsung Life Insurance | 19.3× | 0.4× | — | — | 0.0% |
| Samsung Fire & Marine Insurance | 13.7× | 0.8× | — | — | 3.0% |
| DB Insurance | 6.6× | 0.9× | — | — | 4.1% |
| Hyundaimarine&Fireinsuranceco | 3.2× | 0.6× | — | — | 0.0% |
| Hanwha Life Insurance | 3.4× | 0.2× | — | — | 0.0% |
| Seoul Guarantee Insurance | 9.8× | 0.6× | — | — | 6.6% |
| Similar companies (median) | 8.2× | 0.6× | — | — | 1.5% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Korean Reinsurance / 코리안리 / 003690 / KRX:003690
Source: KRX statistical information