Industrial Bank of Korea기업은행
024110 · KOSPI · ₩024110 · 기업은행
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
₩37,871
vs the current price (₩19,180)
- Cost of equity
- 9.6%
- Fair P/B
- 0.80×
- P/B now
- 0.41×
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
- ₩22,488
- +17.2%
- Base
- ₩37,871
- +97.4%
- Bull
- ₩57,929
- +202.0%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 8.1%
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
- 4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
- 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)
- ₩199T
- Equity (book value)
- ₩38T
- Book value per share ₩47,065
- Shares
- 797,425,869
- Share price
- ₩19,180
- Market cap
- ₩15T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 6.1% | 7.1% | 8.1% | 9.1% | 10.1% |
|---|---|---|---|---|---|
| 8.6% | ₩29,322 | ₩36,474 | ₩43,625 | ₩50,777 | ₩57,929 |
| 9.1% | ₩27,252 | ₩33,898 | ₩40,545 | ₩47,192 | ₩53,838 |
| 9.6% | ₩25,454 | ₩31,663 | ₩37,871 | ₩44,079 | ₩50,288 |
| 10.1% | ₩23,879 | ₩29,703 | ₩35,528 | ₩41,352 | ₩47,176 |
| 10.6% | ₩22,488 | ₩27,973 | ₩33,458 | ₩38,942 | ₩44,427 |
Now (TTM)
- Market cap
- ₩15T
- Enterprise value
- ₩215T
- P/E
- 5.8×
- P/B
- 0.4×
- P/S
- —
- EV/EBITDA
- —
- Dividend yield
- 5.5%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩20,950 | ₩14,330 | ₩11,860 |
| Market cap | ₩17T | ₩11T | ₩9.5T |
| P/E | 6.2× | 4.3× | 3.5× |
| P/B | 0.5× | 0.3× | 0.3× |
| P/S | — | — | — |
| EV/EBITDA | — | — | — |
| Dividend yield | 5.0% | 7.4% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| 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% |
| Jeju Bank | 20.8× | 0.5× | — | 13.9× | 1.2% |
| Pureun Savings Bank | 12.0× | 0.5× | — | 24.8× | 7.7% |
| Similar companies (median) | 19.8× | 0.7× | 2.9× | 13.9× | 1.8% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Industrial Bank of Korea / 기업은행 / 024110 / KRX:024110
Source: KRX statistical information