Shinhan Financial Group신한지주
055550 · KOSPI · ₩SHINHAN · 신한지주
Valuation model · P/B vs ROE (excess return)
This is a financial holding company (a bank or insurance group): borrowing and lending is its business, so we value it on book value and return on equity: P/B vs ROE.
Fair value per share
₩107,425
vs the current price (₩89,600)
- Cost of equity
- 9.5%
- Fair P/B
- 0.84×
- P/B now
- 0.70×
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
- ₩64,704
- −27.8%
- Base
- ₩107,425
- +19.9%
- Bull
- ₩163,275
- +82.2%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 8.3%
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
- 4.01%
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)
- ₩49T
- Equity (book value)
- ₩60T
- Book value per share ₩128,024
- Shares
- 469,450,239
- Share price
- ₩89,600
- Market cap
- ₩42T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 6.3% | 7.3% | 8.3% | 9.3% | 10.3% |
|---|---|---|---|---|---|
| 8.5% | ₩84,588 | ₩104,260 | ₩123,932 | ₩143,604 | ₩163,275 |
| 9.0% | ₩78,553 | ₩96,822 | ₩115,090 | ₩133,358 | ₩151,626 |
| 9.5% | ₩73,322 | ₩90,374 | ₩107,425 | ₩124,477 | ₩141,529 |
| 10.0% | ₩68,744 | ₩84,731 | ₩100,718 | ₩116,705 | ₩132,692 |
| 10.5% | ₩64,704 | ₩79,751 | ₩94,799 | ₩109,846 | ₩124,894 |
Now (TTM)
- Market cap
- ₩42T
- Enterprise value
- ₩91T
- P/E
- 7.8×
- P/B
- 0.7×
- P/S
- —
- EV/EBITDA
- 10.2×
- Dividend yield
- 2.9%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩76,900 | ₩47,650 | ₩40,150 |
| Market cap | ₩36T | ₩22T | ₩19T |
| P/E | 7.3× | 5.0× | 4.3× |
| P/B | 0.6× | 0.4× | 0.4× |
| P/S | — | — | — |
| EV/EBITDA | 11.3× | 10.5× | 9.6× |
| Dividend yield | 3.4% | 4.5% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Shinhan Financial Group | 7.8× | 0.7× | — | 10.2× | 2.9% |
| SK Square | 3.6× | 2.2× | 96.1× | 3.5× | 0.0% |
| KB Financial Group | 8.8× | 0.9× | — | 9.6× | 2.8% |
| SK | 4.5× | 1.0× | 0.3× | — | 1.6% |
| Hana Financial Group | 8.0× | 0.7× | — | 10.0× | 3.4% |
| Woori Financial Group | 7.1× | 0.6× | — | 8.5× | 4.4% |
| Meritz Financial Group | 9.3× | 2.0× | — | 22.9× | 0.0% |
| Similar companies (median) | 7.5× | 0.9× | 48.2× | 9.6× | 2.2% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Shinhan Financial Group / 신한지주 / 055550 / KRX:055550
Source: KRX statistical information