Hyosung효성
004800 · KOSPI · ₩004800 · 효성
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
₩196,479
vs the current price (₩125,700)
- Cost of equity
- 9.6%
- Fair P/B
- 1.22×
- P/B now
- 0.78×
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
- ₩136,309
- +8.4%
- Base
- ₩196,479
- +56.3%
- Bull
- ₩274,861
- +118.7%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 11.3%
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 0.94, 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)
- ₩1.4T
- Equity (book value)
- ₩2.7T
- Book value per share ₩160,733
- Shares
- 16,740,407
- Share price
- ₩125,700
- Market cap
- ₩2.1T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 9.3% | 10.3% | 11.3% | 12.3% | 13.3% |
|---|---|---|---|---|---|
| 8.6% | ₩177,565 | ₩201,889 | ₩226,213 | ₩250,537 | ₩274,861 |
| 9.1% | ₩165,075 | ₩187,687 | ₩210,300 | ₩232,913 | ₩255,526 |
| 9.6% | ₩154,226 | ₩175,353 | ₩196,479 | ₩217,606 | ₩238,733 |
| 10.1% | ₩144,715 | ₩164,539 | ₩184,363 | ₩204,187 | ₩224,011 |
| 10.6% | ₩136,309 | ₩154,982 | ₩173,654 | ₩192,327 | ₩210,999 |
Now (TTM)
- Market cap
- ₩2.1T
- Enterprise value
- ₩3.5T
- P/E
- 4.6×
- P/B
- 0.8×
- P/S
- 0.8×
- EV/EBITDA
- —
- Dividend yield
- 4.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩114,700 | ₩46,900 | ₩48,763 | ₩51,690 | ₩72,952 |
| Market cap | ₩1.9T | ₩785B | ₩816B | ₩865B | ₩1.2T |
| P/E | 5.8× | 1.7× | 11,963.6× | 34.9× | 2.3× |
| P/B | 0.8× | 0.4× | 0.3× | 0.3× | 0.5× |
| P/S | 0.8× | 0.3× | 0.2× | 0.2× | 0.3× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 4.4% | 6.4% | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Hyosung | 4.6× | 0.8× | 0.8× | — | 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: Hyosung / 효성 / 004800 / KRX:004800
Source: KRX statistical information