Update shared on 31 Oct 2025
Fair value Increased 11%Analysts have raised their fair value estimate for Samsung Electronics from ₩105,207 to ₩116,542. They cite improving profit margins, even though revenue growth projections have been tempered.
Analyst Commentary
Bullish Takeaways
- Bullish analysts point to robust improvements in operating margins, which are seen as a key driver of the higher fair value estimate.
- Resilient demand for advanced semiconductor products and premium devices continues to support Samsung's leadership position in core markets.
- Successful cost optimization efforts are enhancing profitability across major business segments.
- There is optimism that strategic investments in future technologies, such as artificial intelligence and next-generation memory chips, could accelerate long-term growth trajectories.
Bearish Takeaways
- Bearish analysts remain cautious about subdued growth expectations for overall revenue, especially amid softer global demand for consumer electronics.
- Increased competition in key segments may pressure market share and affect future margin expansion.
- Supply chain disruptions and macroeconomic uncertainties could limit near-term execution and delay the realization of the company’s full growth potential.
What's in the News
- Tesla's upcoming AI5 chip will be manufactured by Samsung in Texas, expanding the company's role as a key partner in next-generation AI hardware for automotive and data center use (CNBC).
- Samsung Chairman Jay Lee's family plans to sell 17.7 million shares, valued at $1.22 billion, to cover tax and loan payments. This represents one of the largest individual share sales in the company's history (Reuters).
- Federal officials found no evidence of tariff cheating among appliance makers including Samsung and LG. Data-entry errors were identified as the cause for previous value discrepancies (The Wall Street Journal).
- Samsung will introduce bonuses and share-based awards for employees, tying long-term incentives to stock performance and employee retention for the first time (Bloomberg).
- Samsung and SK Hynix have signed a letter of intent to supply semiconductors for OpenAI's $500 million Stargate data center project, reinforcing Samsung's role in AI-driven infrastructure (Financial Times).
Valuation Changes
- The Fair Value Estimate has increased from ₩105,207 to ₩116,542, reflecting a notable upward revision.
- The Discount Rate has edged up slightly from 8.19% to 8.19%, suggesting a marginally higher cost of capital assumption.
- The Revenue Growth Forecast has decreased significantly from 5.70% to 3.06%.
- The Net Profit Margin has risen from 12.19% to 14.35%, indicating improved profitability expectations.
- The Future Price-to-Earnings Ratio has declined modestly from 19.12x to 18.68x.
Disclaimer
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