Korea Investment Holdings한국금융지주
071050 · KOSPI · ₩071050 · 한국금융지주
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
₩323,305
vs the current price (₩152,200)
- Cost of equity
- 9.5%
- Fair P/B
- 1.45×
- P/B now
- 0.67×
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
- ₩232,955
- +53.1%
- Base
- ₩323,305
- +112.4%
- Bull
- ₩441,421
- +190.0%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 12.9%
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 0.95, 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)
- ₩80T
- Equity (book value)
- ₩14T
- Book value per share ₩222,695
- Shares
- 61,584,243
- incl. 5,858,251 preferred
- Share price
- ₩152,200
- Market cap
- ₩9.2T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 10.9% | 11.9% | 12.9% | 13.9% | 14.9% |
|---|---|---|---|---|---|
| 8.5% | ₩304,546 | ₩338,765 | ₩372,983 | ₩407,202 | ₩441,421 |
| 9.0% | ₩282,817 | ₩314,595 | ₩346,372 | ₩378,149 | ₩409,926 |
| 9.5% | ₩263,983 | ₩293,644 | ₩323,305 | ₩352,966 | ₩382,627 |
| 10.0% | ₩247,501 | ₩275,310 | ₩303,119 | ₩330,928 | ₩358,737 |
| 10.5% | ₩232,955 | ₩259,130 | ₩285,305 | ₩311,480 | ₩337,655 |
Now (TTM)
- Market cap
- ₩8.5T
- Enterprise value
- ₩88T
- P/E
- 2.9×
- P/B
- 0.6×
- P/S
- —
- EV/EBITDA
- —
- Dividend yield
- 5.7%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩161,700 | ₩71,300 | ₩61,300 |
| Market cap | ₩9T | ₩4T | ₩3.4T |
| P/E | 4.5× | 3.8× | 4.8× |
| P/B | 0.8× | 0.4× | 0.4× |
| P/S | — | 0.2× | 0.2× |
| EV/EBITDA | — | — | — |
| Dividend yield | 5.4% | 5.6% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Korea Investment Holdings | 2.9× | 0.6× | — | — | 5.7% |
| SK Square | 3.6× | 2.2× | 96.1× | 3.5× | 0.0% |
| KB Financial Group | 8.8× | 0.9× | — | 9.6× | 2.8% |
| Shinhan Financial Group | 7.8× | 0.7× | — | 10.2× | 2.9% |
| 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% |
| Similar companies (median) | 7.5× | 0.8× | 48.2× | 9.6× | 2.8% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Korea Investment Holdings / 한국금융지주 / 071050 / KRX:071050
Source: KRX statistical information