KOSPI · 005930 · Electronics · ₩SEC

Samsung Electronics삼성전자

005930 · KOSPI · ₩SEC · 삼성전자

₩213,000▼ ₩2,500 (1.16%)End-of-day · Oct 26, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩105,380

vs the current price (₩213,000)

Enterprise value: ₩480T
Equity value: ₩701T
WACC: 10.4%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 51% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩213,000, the model needs an operating margin of 30.2% every year (it uses 14.2%).
Or revenue growth +24.7 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩729T, operating profit ₩368T (50.4% margin) (2 brokers). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩1,080T, operating profit ₩601T (55.7% margin) (2 brokers). The model starts from the last 12 months reported.
Margins ranged from 2.5% to 18.5% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
Today's P/E is 9.5× against a typical 11.9× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩79,646; −62.6%
Base: ₩105,380; −50.5%
Bull: ₩143,736; −32.5%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (14.2%).

Revenue growth

Revenue growth, year 13.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 23.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 33.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin14.2%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation15.2%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).
Capital spending19%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital12.1%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
Beta1.16
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 1.23, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.53%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩485T
Net debt (borrowings and leases − cash and deposits): −₩181T
+ Stakes and investments: ₩54T; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩14T
Shares: 6,648,649,811; incl. 802,371,203 preferred
Share price: ₩213,000
Market cap: ₩1,377T

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩259T	₩301T	₩334T	₩501T	₩518T	₩534T	₩551T	₩567T
Growth	−14.3%	16.2%	10.9%	3.3%	3.3%	3.2%	3.1%	3.0%
EBIT	₩6.6T	₩33T	₩44T	₩71T	₩74T	₩76T	₩78T	₩81T
EBIT margin	2.5%	10.9%	13.1%	14.2%	14.2%	14.2%	14.2%	14.2%
After-tax EBIT	₩4.8T	₩24T	₩32T	₩52T	₩53T	₩55T	₩57T	₩58T
+ Depreciation	—	—	—	₩76T	₩79T	₩81T	₩84T	₩86T
− Capital spending	₩61T	₩54T	₩52T	₩95T	₩98T	₩102T	₩105T	₩108T
− Working capital	−₩60T	₩231B	−₩2.3T	₩1.9T	₩2T	₩2T	₩2T	₩2T
Free cash flow	—	—	—	₩31T	₩32T	₩33T	₩34T	₩35T
Discount factor	—	—	—	0.906	0.820	0.743	0.673	0.609
Present value	—	—	—	₩28T	₩26T	₩24T	₩23T	₩21T

Terminal value ₩587T, worth ₩358T today: 75% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩84,989 a share)Now 2.51×	₩83,3850.98×	₩116,1511.37×	₩260,0003.06×
Price / earnings (last 12 months: ₩22,511 a share)Now 9.46×	₩198,5168.82×	₩268,50011.9×	₩599,87126.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩42,878 a share)Now 4.97×	₩378,1188.82×	₩511,41711.9×	₩1,142,58726.6×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
9.4%	₩108,610	₩112,060	₩115,971	₩120,443	₩125,607
9.9%	₩103,988	₩106,975	₩110,336	₩114,145	₩118,502
10.4%	₩99,866	₩102,470	₩105,380	₩108,654	₩112,366
10.9%	₩96,169	₩98,453	₩100,990	₩103,825	₩107,015
11.4%	₩92,835	₩94,850	₩97,075	₩99,547	₩102,309

Now (TTM)

Market cap: ₩1,245T
Enterprise value: ₩1,064T
P/E: 8.3×
P/B: 2.2×
P/S: 2.6×
EV/EBITDA: —
Dividend yield: 0.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩119,900	₩53,200	₩78,500	₩55,300	₩78,300
Market cap	₩701T	₩311T	₩459T	₩323T	₩458T
P/E	15.8×	9.3×	31.7×	5.9×	11.7×
P/B	1.7×	0.8×	1.3×	0.9×	1.5×
P/S	2.1×	1.0×	1.8×	1.1×	1.6×
EV/EBITDA	—	—	—	—	—
Dividend yield	1.4%	2.7%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Samsung Electronics	8.3×	2.2×	2.6×	—	0.8%
LG Electronics	24.4×	0.9×	0.3×	—	0.9%
Hanwha Vision	15.8×	2.0×	1.0×	—	0.0%
RFHIC	37.8×	3.4×	6.1×	—	0.8%
KMW	—	5.0×	8.2×	—	0.0%
Intellian Technologies	12.6×	1.9×	1.5×	—	0.4%
Solid	9.0×	1.3×	1.6×	12.6×	0.6%
Similar companies (median)	15.8×	2.0×	1.5×	12.6×	0.5%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Samsung Electronics / 삼성전자 / 005930 / KRX:005930

Source: KRX statistical information