Shinhan 17th Special Purpose Acquisition신한제17호스팩
0130D0 · KOSDAQ · ₩0130D0 · 신한제17호스팩
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
₩1,561
vs the current price (₩1,956)
- Cost of equity
- 9.5%
- Fair P/B
- 0.80×
- P/B now
- 1.00×
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
- ₩919
- −53.0%
- Base
- ₩1,561
- −20.2%
- Bull
- ₩2,402
- +22.8%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 8%
Yearly profit as a share of shareholders' equity.
Default: average return on equity of the last 0 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)
- −₩10B
- Equity (book value)
- ₩10B
- Book value per share ₩1,954
- Shares
- 5,340,000
- Share price
- ₩1,956
- Market cap
- ₩10B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 6.0% | 7.0% | 8.0% | 9.0% | 10.0% |
|---|---|---|---|---|---|
| 8.5% | ₩1,201 | ₩1,501 | ₩1,801 | ₩2,101 | ₩2,402 |
| 9.0% | ₩1,115 | ₩1,394 | ₩1,673 | ₩1,952 | ₩2,230 |
| 9.5% | ₩1,041 | ₩1,301 | ₩1,561 | ₩1,822 | ₩2,082 |
| 10.0% | ₩976 | ₩1,220 | ₩1,464 | ₩1,708 | ₩1,952 |
| 10.5% | ₩919 | ₩1,148 | ₩1,378 | ₩1,607 | ₩1,837 |
Valuation
Also known as: Shinhan 17th Special Purpose Acquisition / 신한제17호스팩 / 0130D0 / KRX:0130D0
Source: KRX statistical information