Kyungdong Invest경동인베스트
012320 · KOSPI · ₩012320 · 경동인베스트
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
₩63,572
vs the current price (₩42,850)
- Cost of equity
- 9.6%
- Fair P/B
- 0.30×
- P/B now
- 0.20×
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
- ₩7,329
- −82.9%
- Base
- ₩63,572
- +48.4%
- Bull
- ₩136,838
- +219.3%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 4.3%
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 0.67, 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)
- −₩72B
- Equity (book value)
- ₩497B
- Book value per share ₩210,285
- Shares
- 2,365,023
- Share price
- ₩42,850
- Market cap
- ₩101B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 2.3% | 3.3% | 4.3% | 5.3% | 6.3% |
|---|---|---|---|---|---|
| 8.6% | ₩9,547 | ₩41,370 | ₩73,192 | ₩105,015 | ₩136,838 |
| 9.1% | ₩8,875 | ₩38,459 | ₩68,044 | ₩97,628 | ₩127,212 |
| 9.6% | ₩8,292 | ₩35,932 | ₩63,572 | ₩91,212 | ₩118,852 |
| 10.1% | ₩7,781 | ₩33,716 | ₩59,652 | ₩85,587 | ₩111,522 |
| 10.6% | ₩7,329 | ₩31,758 | ₩56,187 | ₩80,616 | ₩105,045 |
Now (TTM)
- Market cap
- ₩101B
- Enterprise value
- ₩21B
- P/E
- 5.6×
- P/B
- 0.2×
- P/S
- 0.4×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩51,900 | ₩61,000 | ₩67,700 | ₩98,500 | ₩35,350 |
| Market cap | ₩123B | ₩144B | ₩160B | ₩233B | ₩84B |
| P/E | 6.6× | 6.7× | 8.0× | 16.4× | 5.7× |
| P/B | 0.2× | 0.3× | 0.3× | 0.5× | 0.2× |
| P/S | 0.4× | 0.5× | 0.5× | 0.8× | 0.3× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | 0.0% | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Kyungdong Invest | 5.6× | 0.2× | 0.4× | — | 0.0% |
| Mirae Asset Securities | 3.5× | 0.8× | 0.3× | — | 1.2% |
| NH Investment & Securities | 5.5× | 0.8× | — | — | 5.7% |
| 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 | — | — | — | — | — |
| Similar companies (median) | 4.8× | 0.8× | 0.2× | 24.9× | 5.3% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Kyungdong Invest / 경동인베스트 / 012320 / KRX:012320
Source: KRX statistical information