NH Investment & SecuritiesNH투자증권
005940 · KOSPI · ₩005940 · NH투자증권
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
₩27,126
vs the current price (₩22,850)
- Cost of equity
- 9.5%
- Fair P/B
- 0.97×
- P/B now
- 0.81×
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
- ₩17,386
- −23.9%
- Base
- ₩27,126
- +18.7%
- Bull
- ₩39,848
- +74.4%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 9.3%
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
- 4.03%
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.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: 1.0. Measured beta is 0.76, 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)
- ₩4.5T
- Equity (book value)
- ₩11T
- Book value per share ₩27,988
- Shares
- 388,077,073
- incl. 18,870,968 preferred
- Share price
- ₩22,850
- Market cap
- ₩8.8T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 7.3% | 8.3% | 9.3% | 10.3% | 11.3% |
|---|---|---|---|---|---|
| 8.5% | ₩22,709 | ₩26,994 | ₩31,278 | ₩35,563 | ₩39,848 |
| 9.0% | ₩21,094 | ₩25,074 | ₩29,054 | ₩33,034 | ₩37,014 |
| 9.5% | ₩19,694 | ₩23,410 | ₩27,126 | ₩30,841 | ₩34,557 |
| 10.0% | ₩18,468 | ₩21,952 | ₩25,437 | ₩28,921 | ₩32,406 |
| 10.5% | ₩17,386 | ₩20,666 | ₩23,946 | ₩27,227 | ₩30,507 |
Now (TTM)
- Market cap
- ₩8.4T
- Enterprise value
- ₩13T
- P/E
- 5.5×
- P/B
- 0.8×
- P/S
- —
- EV/EBITDA
- —
- Dividend yield
- 5.7%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩21,100 | ₩13,950 | ₩10,330 |
| Market cap | ₩7.8T | ₩5.2T | ₩3.8T |
| P/E | 7.6× | 7.5× | 6.9× |
| P/B | 0.8× | 0.6× | 0.5× |
| P/S | — | — | — |
| EV/EBITDA | — | — | — |
| Dividend yield | 6.2% | 6.8% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| NH Investment & Securities | 5.5× | 0.8× | — | — | 5.7% |
| Mirae Asset Securities | 3.5× | 0.8× | 0.3× | — | 1.2% |
| Samsung Securities | 4.8× | 0.8× | — | — | 5.1% |
| KIWOOM Securities | 3.3× | 0.7× | 0.2× | 21.5× | 5.3% |
| Samsung Card | 7.3× | 0.5× | — | 28.4× | 6.9% |
| Macquarie Korea Infrastructure Fund | — | — | — | — | — |
| kakaopay | 51.3× | 2.3× | 3.9× | — | 0.0% |
| Similar companies (median) | 4.8× | 0.8× | 0.3× | 24.9× | 5.1% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: NH Investment & Securities / NH투자증권 / 005940 / KRX:005940
Source: KRX statistical information