LS SecuritiesLS증권
078020 · KOSDAQ · ₩078020 · LS증권
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
₩1,091
vs the current price (₩6,180)
- Cost of equity
- 9.6%
- Fair P/B
- 0.07×
- P/B now
- 0.37×
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
- —
- Base
- ₩1,091
- −82.3%
- Bull
- ₩6,286
- +1.7%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 2.5%
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 0.7, 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)
- ₩4.1T
- Equity (book value)
- ₩918B
- Book value per share ₩16,547
- Shares
- 55,481,190
- Share price
- ₩6,180
- Market cap
- ₩343B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 0.5% | 1.5% | 2.5% | 3.5% | 4.5% |
|---|---|---|---|---|---|
| 8.6% | — | — | ₩1,257 | ₩3,771 | ₩6,286 |
| 9.1% | — | — | ₩1,168 | ₩3,505 | ₩5,842 |
| 9.6% | — | — | ₩1,091 | ₩3,274 | ₩5,457 |
| 10.1% | — | — | ₩1,024 | ₩3,071 | ₩5,119 |
| 10.6% | — | — | ₩964 | ₩2,892 | ₩4,821 |
Now (TTM)
- Market cap
- ₩343B
- Enterprise value
- ₩4.4T
- P/E
- 10.6×
- P/B
- 0.4×
- P/S
- 0.1×
- EV/EBITDA
- —
- Dividend yield
- 8.1%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩4,800 | ₩3,830 | ₩3,875 |
| Market cap | ₩266B | ₩212B | ₩215B |
| P/E | 11.6× | 12.8× | 7.5× |
| P/B | 0.3× | 0.2× | 0.2× |
| P/S | 0.1× | 0.1× | 0.2× |
| EV/EBITDA | — | — | — |
| Dividend yield | 10.4% | 2.6% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| LS Securities | 10.6× | 0.4× | 0.1× | — | 8.1% |
| Mirae Asset Securities | 3.8× | 0.9× | 0.3× | — | 1.1% |
| NH Investment & Securities | 5.7× | 0.8× | — | — | 5.5% |
| Samsung Securities | 5.0× | 0.8× | — | — | 4.9% |
| KIWOOM Securities | 3.5× | 0.8× | 0.2× | 21.6× | 5.0% |
| Samsung Card | 7.3× | 0.5× | — | 28.4× | 6.9% |
| kakaopay | 52.7× | 2.3× | 4.0× | — | 0.0% |
| Similar companies (median) | 5.4× | 0.8× | 0.3× | 25.0× | 4.9% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: LS Securities / LS증권 / 078020 / KRX:078020
Source: KRX statistical information