DB SecuritiesDB증권
016610 · KOSPI · ₩016610 · DB증권
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
₩9,625
vs the current price (₩9,120)
- Cost of equity
- 9.5%
- Fair P/B
- 0.32×
- P/B now
- 0.30×
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
- ₩1,416
- −84.5%
- Base
- ₩9,625
- +5.5%
- Bull
- ₩20,346
- +123.1%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
Sign in to change the assumptions and see the results update. Sign in
Business
- 4.4%
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 0.73, 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)
- ₩555B
- Equity (book value)
- ₩1.3T
- Book value per share ₩30,205
- Shares
- 42,446,389
- Share price
- ₩9,120
- Market cap
- ₩387B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 2.4% | 3.4% | 4.4% | 5.4% | 6.4% |
|---|---|---|---|---|---|
| 8.5% | ₩1,850 | ₩6,474 | ₩11,098 | ₩15,722 | ₩20,346 |
| 9.0% | ₩1,718 | ₩6,013 | ₩10,309 | ₩14,604 | ₩18,900 |
| 9.5% | ₩1,604 | ₩5,614 | ₩9,625 | ₩13,635 | ₩17,645 |
| 10.0% | ₩1,504 | ₩5,265 | ₩9,025 | ₩12,786 | ₩16,547 |
| 10.5% | ₩1,416 | ₩4,956 | ₩8,496 | ₩12,037 | ₩15,577 |
Now (TTM)
- Market cap
- ₩387B
- Enterprise value
- ₩942B
- P/E
- 3.6×
- P/B
- 0.3×
- P/S
- 0.1×
- EV/EBITDA
- 6.6×
- Dividend yield
- 6.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩10,850 | ₩5,170 | ₩3,850 |
| Market cap | ₩461B | ₩219B | ₩163B |
| P/E | 5.7× | 4.4× | 26.5× |
| P/B | 0.4× | 0.2× | 0.2× |
| P/S | 0.2× | 0.2× | 0.1× |
| EV/EBITDA | 6.0× | 3.4× | 9.5× |
| Dividend yield | 5.1% | 7.7% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| DB Securities | 3.6× | 0.3× | 0.1× | 6.6× | 6.0% |
| Mirae Asset Securities | 3.4× | 0.8× | 0.3× | — | 1.3% |
| NH Investment & Securities | 5.4× | 0.8× | — | — | 5.8% |
| Samsung Securities | 4.7× | 0.8× | — | — | 5.2% |
| KIWOOM Securities | 3.2× | 0.7× | 0.2× | 21.4× | 5.5% |
| Samsung Card | 7.4× | 0.5× | — | 28.5× | 6.7% |
| Macquarie Korea Infrastructure Fund | — | — | — | — | — |
| Similar companies (median) | 4.7× | 0.8× | 0.2× | 25.0× | 5.5% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: DB Securities / DB증권 / 016610 / KRX:016610
Source: KRX statistical information