Jeju Bank제주은행
006220 · KOSPI · ₩006220 · 제주은행
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
With these assumptions the model gives no positive value.
- Cost of equity
- 9.5%
- Fair P/B
- 0.00×
- P/B now
- 0.48×
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
- —
- Base
- —
- Bull
- ₩4,461
- −45.5%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 1.7%
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)
- −₩15B
- Equity (book value)
- ₩646B
- Book value per share ₩17,079
- Shares
- 37,798,557
- Share price
- ₩8,190
- Market cap
- ₩310B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | −0.3% | 0.7% | 1.7% | 2.7% | 3.7% |
|---|---|---|---|---|---|
| 8.5% | — | — | — | ₩1,837 | ₩4,461 |
| 9.0% | — | — | — | ₩1,706 | ₩4,143 |
| 9.5% | — | — | — | ₩1,592 | ₩3,867 |
| 10.0% | — | — | — | ₩1,493 | ₩3,626 |
| 10.5% | — | — | — | ₩1,405 | ₩3,413 |
Now (TTM)
- Market cap
- ₩310B
- Enterprise value
- ₩294B
- P/E
- 20.8×
- P/B
- 0.5×
- P/S
- —
- EV/EBITDA
- 13.9×
- Dividend yield
- 1.2%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩11,250 | ₩8,530 | ₩8,110 |
| Market cap | ₩425B | ₩322B | ₩307B |
| P/E | 30.5× | 31.0× | 60.1× |
| P/B | 0.7× | 0.5× | 0.6× |
| P/S | — | — | — |
| EV/EBITDA | 31.4× | 20.9× | 39.7× |
| Dividend yield | 0.9% | 1.2% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Jeju Bank | 20.8× | 0.5× | — | 13.9× | 1.2% |
| Industrial Bank of Korea | 5.8× | 0.4× | — | — | 5.5% |
| KakaoBank | 18.8× | 1.4× | 2.9× | 11.4× | 2.4% |
| Kbank | 29.0× | 0.8× | — | — | 0.0% |
| Pureun Savings Bank | 12.0× | 0.5× | — | 24.8× | 7.7% |
| Similar companies (median) | 15.4× | 0.7× | 2.9× | 18.1× | 3.9% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Jeju Bank / 제주은행 / 006220 / KRX:006220
Source: KRX statistical information