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A055550 Share Buyback And Lower Risk Premium May Support Future Upside

Digital Adoption And ESG Awareness Will Unlock New Markets

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A055550
AnalystHighTarget
Not Invested
Published 13 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 1.92%
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AnalystHighTarget's Fair Value
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1Y
59.4%
7D
1.8%

Analysts have nudged their price target for Shinhan Financial Group higher from ₩104,000 to ₩106,000, reflecting slightly stronger expectations for long term revenue growth and a marginally lower discount rate. This is partly offset by a modestly softer projected profit margin and a higher assumed future P/E multiple.

What's in the News

  • Completed share repurchase of 4,100,000 shares, equal to 0.84% of outstanding shares, under the buyback program announced on July 25, 2025 (Key Developments)
  • Total consideration for the completed buyback reached KRW 278.1 billion, signaling continued capital return to shareholders (Key Developments)
  • Buyback tranche ran from July 25, 2025 to September 30, 2025, indicating timely execution within the announced window (Key Developments)

Valuation Changes

  • The consensus analyst price target has risen slightly from ₩104,000 to ₩106,000, reflecting a modestly higher assessed fair value.
  • The discount rate has fallen slightly from 8.41% to 8.24%, implying a marginally lower required return in the valuation model.
  • Revenue growth has edged higher from 5.16% to 5.23%, indicating a small improvement in long-term growth expectations.
  • Net profit margin has declined slightly from 35.65% to 34.98%, signaling a modestly softer profitability outlook.
  • The future P/E has increased slightly from 9.31x to 9.48x, suggesting a marginally higher multiple being applied to projected earnings.

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Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.