Hecto Financial헥토파이낸셜
234340 · KOSDAQ · ₩234340 · 헥토파이낸셜
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
₩8,561
vs the current price (₩18,150)
- Cost of equity
- 9.5%
- Fair P/B
- 0.67×
- P/B now
- 1.41×
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
- ₩4,533
- −75.0%
- Base
- ₩8,561
- −52.8%
- Bull
- ₩13,827
- −23.8%
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
- 7%
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 0.82, 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)
- −₩233B
- Equity (book value)
- ₩180B
- Book value per share ₩12,855
- Shares
- 13,970,656
- Share price
- ₩18,150
- Market cap
- ₩254B
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 5.0% | 6.0% | 7.0% | 8.0% | 9.0% |
|---|---|---|---|---|---|
| 8.5% | ₩5,926 | ₩7,901 | ₩9,876 | ₩11,852 | ₩13,827 |
| 9.0% | ₩5,503 | ₩7,337 | ₩9,172 | ₩11,006 | ₩12,840 |
| 9.5% | ₩5,137 | ₩6,849 | ₩8,561 | ₩10,273 | ₩11,985 |
| 10.0% | ₩4,816 | ₩6,421 | ₩8,026 | ₩9,632 | ₩11,237 |
| 10.5% | ₩4,533 | ₩6,044 | ₩7,555 | ₩9,066 | ₩10,577 |
Now (TTM)
- Market cap
- ₩254B
- Enterprise value
- ₩16B
- P/E
- 16.8×
- P/B
- 1.4×
- P/S
- 1.2×
- EV/EBITDA
- —
- Dividend yield
- 1.2%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩15,410 | ₩9,933 | ₩18,066 | ₩13,059 | ₩21,550 |
| Market cap | ₩215B | ₩139B | ₩252B | ₩182B | ₩301B |
| P/E | 23.2× | 14.3× | 22.4× | 13.0× | 14.4× |
| P/B | 1.3× | 1.0× | 1.8× | 1.3× | 2.2× |
| P/S | 1.1× | 0.9× | 1.6× | 1.4× | 2.7× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 1.4% | 2.4% | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Hecto Financial | 16.8× | 1.4× | 1.2× | — | 1.2% |
| Mirae Asset Securities | 3.6× | 0.9× | 0.3× | — | 1.2% |
| NH Investment & Securities | 5.8× | 0.8× | — | — | 5.4% |
| Samsung Securities | 4.9× | 0.8× | — | — | 5.0% |
| KIWOOM Securities | 3.3× | 0.8× | 0.2× | 21.5× | 5.2% |
| Samsung Card | 7.6× | 0.6× | — | 28.7× | 6.6% |
| Macquarie Korea Infrastructure Fund | — | — | — | — | — |
| Similar companies (median) | 4.9× | 0.8× | 0.2× | 25.1× | 5.2% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Hecto Financial / 헥토파이낸셜 / 234340 / KRX:234340
Source: KRX statistical information