Update shared on 11 Dec 2025
Fair value Increased 0.59%Analysts have modestly raised their price target for LG Energy Solution, lifting fair value by approximately ₩3,000 to about ₩509,600. They cite slightly higher long term valuation multiples despite marginally softer growth and profitability assumptions.
What's in the News
- LG Energy Solution entered a strategic partnership with U.S. based South 8 Technologies to jointly develop space rated lithium ion batteries that can operate at temperatures as low as minus 60 °C, targeting next generation aerospace and deep space missions in collaboration with KULR Technology Group and NASA Johnson Space Center (Key Developments).
- The partnership leverages South 8's patented liquefied gas electrolyte technology, recognized by TIME magazine as one of the Best Inventions of 2024, to improve ultra low temperature performance and significantly enhance battery safety by turning damaged cells into non functional dummy cells (Key Developments).
- LG Energy Solution deepened its relationship with South 8 Technologies following a 2019 Startup Challenge connection and a 2024 joint development agreement, further cementing its role in next generation aerospace battery innovation (Key Developments).
- A consortium of Korean financial investors, including Korea Investment & Securities and NH Investment & Securities, completed the acquisition of a 2.46% stake in LG Energy Solution from LG Chem for KRW 2.0 trillion on November 3, 2025, at KRW 347,500 per share (Key Developments).
- The stake sale by LG Chem, initially announced on October 1, 2025, is expected to broaden LG Energy Solution's institutional shareholder base and may improve stock liquidity following the transfer of the minority holding (Key Developments).
Valuation Changes
- Fair Value: Risen slightly from approximately ₩506,600 to about ₩509,600 per share, reflecting modestly higher long term valuation assumptions.
- Discount Rate: Increased marginally from about 9.82 percent to roughly 9.91 percent, implying a slightly higher required return on equity.
- Revenue Growth: Edged down slightly from around 20.51 percent to about 20.46 percent, indicating a small tempering of long term growth expectations.
- Net Profit Margin: Eased modestly from roughly 10.47 percent to about 10.43 percent, pointing to marginally softer profitability assumptions.
- Future P/E: Increased slightly from about 35.7 times to roughly 36.2 times, signaling a minor expansion in the long term earnings multiple applied.
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