KakaoBank카카오뱅크
323410 · KOSPI · ₩323410 · 카카오뱅크
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
₩8,676
vs the current price (₩19,530)
- Cost of equity
- 9.6%
- Fair P/B
- 0.62×
- P/B now
- 1.40×
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
- ₩4,403
- −77.5%
- Base
- ₩8,676
- −55.6%
- Bull
- ₩14,247
- −27.1%
Bear: ROE 2 points lower and cost of equity 1 point higher. Bull: the opposite.
Assumptions
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Business
- 6.7%
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
- 4.08%
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)
- −₩1.2T
- Equity (book value)
- ₩6.7T
- Book value per share ₩13,994
- Shares
- 477,120,437
- Share price
- ₩19,530
- Market cap
- ₩9.3T
Sensitivity
Fair value per share as two inputs change; the middle is the current case.
| Cost of equity ↓ · ROE → | 4.7% | 5.7% | 6.7% | 7.7% | 8.7% |
|---|---|---|---|---|---|
| 8.6% | ₩5,741 | ₩7,868 | ₩9,994 | ₩12,120 | ₩14,247 |
| 9.1% | ₩5,336 | ₩7,312 | ₩9,288 | ₩11,264 | ₩13,241 |
| 9.6% | ₩4,984 | ₩6,830 | ₩8,676 | ₩10,522 | ₩12,367 |
| 10.1% | ₩4,676 | ₩6,407 | ₩8,139 | ₩9,871 | ₩11,602 |
| 10.6% | ₩4,403 | ₩6,034 | ₩7,665 | ₩9,295 | ₩10,926 |
Now (TTM)
- Market cap
- ₩9.3T
- Enterprise value
- ₩8.1T
- P/E
- 18.8×
- P/B
- 1.4×
- P/S
- 2.9×
- EV/EBITDA
- 11.4×
- Dividend yield
- 2.4%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩21,600 | ₩21,050 | ₩28,500 |
| Market cap | ₩10T | ₩10T | ₩14T |
| P/E | 21.5× | 22.8× | 38.3× |
| P/B | 1.5× | 1.5× | 2.2× |
| P/S | 3.3× | 3.4× | 5.5× |
| EV/EBITDA | 11.7× | 12.5× | 21.0× |
| Dividend yield | 2.1% | 1.7% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| KakaoBank | 18.8× | 1.4× | 2.9× | 11.4× | 2.4% |
| Industrial Bank of Korea | 5.8× | 0.4× | — | — | 5.5% |
| 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) | 16.4× | 0.5× | — | 19.4× | 3.3% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: KakaoBank / 카카오뱅크 / 323410 / KRX:323410
Source: KRX statistical information