Are Investors Undervaluing Samsung Electronics Co., Ltd. (KRX:005930) By 46%?
Nov 19
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South Korean (KOSPI) Tech Sector Analysis
UpdatedNov 20, 2024
DataAggregated Company Financials
Companies628
- 7D1.3%
- 3M-23.4%
- 1Y-17.4%
- YTD-24.0%
The Tech industry is up 1.3% in the last week, with Samsung Electronics up 6.2%. In the same time, SK hynix was down 8.2%. In the past year, the industry is down 17%. Earnings are forecast to grow by 24% annually.
Sector Valuation and Performance
Has the South Korean Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 20 Nov 2024 | ₩657.1t | ₩550.8t | ₩38.9t | 12.8x | 16.9x | 1.2x |
| Fri, 18 Oct 2024 | ₩724.4t | ₩536.4t | ₩32.5t | 14.1x | 22.3x | 1.4x |
| Sun, 15 Sep 2024 | ₩728.9t | ₩536.4t | ₩32.6t | 13.8x | 22.4x | 1.4x |
| Tue, 13 Aug 2024 | ₩817.0t | ₩523.7t | ₩27.2t | 15.4x | 30x | 1.6x |
| Thu, 11 Jul 2024 | ₩981.9t | ₩507.7t | ₩18.7t | 16.8x | 52.5x | 1.9x |
| Sat, 08 Jun 2024 | ₩891.4t | ₩508.3t | ₩18.5t | 17.8x | 48.2x | 1.8x |
| Mon, 06 May 2024 | ₩870.2t | ₩498.4t | ₩14.1t | 17.9x | 61.5x | 1.7x |
| Wed, 03 Apr 2024 | ₩932.3t | ₩489.4t | ₩8.5t | 18.2x | 110.3x | 1.9x |
| Fri, 01 Mar 2024 | ₩816.7t | ₩486.7t | ₩3.8t | 18.4x | 217.4x | 1.7x |
| Sun, 28 Jan 2024 | ₩801.0t | ₩490.8t | ₩19.4t | 18.6x | 41.4x | 1.6x |
| Tue, 26 Dec 2023 | ₩823.7t | ₩491.4t | ₩19.5t | 18.3x | 42.3x | 1.7x |
| Thu, 23 Nov 2023 | ₩793.5t | ₩497.9t | ₩21.9t | 16.9x | 36.3x | 1.6x |
| Sat, 21 Oct 2023 | ₩751.6t | ₩512.7t | ₩29.2t | 14.6x | 25.8x | 1.5x |
| Mon, 18 Sep 2023 | ₩797.2t | ₩512.7t | ₩29.2t | 16.2x | 27.3x | 1.6x |
| Wed, 16 Aug 2023 | ₩755.2t | ₩522.0t | ₩37.1t | 14.8x | 20.3x | 1.4x |
| Fri, 14 Jul 2023 | ₩795.8t | ₩540.0t | ₩47.0t | 16x | 16.9x | 1.5x |
| Sun, 11 Jun 2023 | ₩795.9t | ₩540.0t | ₩47.2t | 16.1x | 16.9x | 1.5x |
| Tue, 09 May 2023 | ₩724.4t | ₩552.7t | ₩53.2t | 14.5x | 13.6x | 1.3x |
| Thu, 06 Apr 2023 | ₩714.9t | ₩568.5t | ₩64.4t | 14.9x | 11.1x | 1.3x |
| Sat, 04 Mar 2023 | ₩696.7t | ₩577.8t | ₩74.8t | 12.4x | 9.3x | 1.2x |
| Mon, 30 Jan 2023 | ₩715.2t | ₩581.1t | ₩58.0t | 11.8x | 12.3x | 1.2x |
| Wed, 28 Dec 2022 | ₩641.7t | ₩582.8t | ₩60.2t | 10.9x | 10.7x | 1.1x |
| Fri, 25 Nov 2022 | ₩689.1t | ₩581.4t | ₩64.0t | 11.7x | 10.8x | 1.2x |
| Sun, 23 Oct 2022 | ₩632.2t | ₩572.5t | ₩66.7t | 10.7x | 9.5x | 1.1x |
| Tue, 20 Sep 2022 | ₩652.8t | ₩572.4t | ₩66.7t | 11.9x | 9.8x | 1.1x |
| Thu, 18 Aug 2022 | ₩699.7t | ₩558.6t | ₩67.6t | 13.8x | 10.3x | 1.3x |
| Sat, 16 Jul 2022 | ₩678.6t | ₩546.6t | ₩67.0t | 12.3x | 10.1x | 1.2x |
| Mon, 13 Jun 2022 | ₩737.1t | ₩547.1t | ₩67.0t | 14.3x | 11x | 1.3x |
| Wed, 11 May 2022 | ₩759.4t | ₩535.0t | ₩65.1t | 15.2x | 11.7x | 1.4x |
| Fri, 08 Apr 2022 | ₩791.1t | ₩522.4t | ₩61.1t | 16.1x | 12.9x | 1.5x |
| Sun, 06 Mar 2022 | ₩813.5t | ₩504.1t | ₩55.8t | 18x | 14.6x | 1.6x |
| Tue, 01 Feb 2022 | ₩825.9t | ₩502.2t | ₩55.8t | 18.4x | 14.8x | 1.6x |
| Thu, 30 Dec 2021 | ₩906.2t | ₩485.3t | ₩48.4t | 19.7x | 18.7x | 1.9x |
| Sat, 27 Nov 2021 | ₩840.2t | ₩484.8t | ₩52.0t | 19.1x | 16.2x | 1.7x |
Price to Earnings Ratio
16.2x
Current Industry PE
- Investors are pessimistic on the South Korean Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 16.9x which is lower than its 3-year average PE of 31.5x.
- The 3-year average PS ratio of 1.5x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 9.2% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.3% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South Korean Tech sector?
| KR Market | -0.72% | |
| Tech | 1.28% | |
| Tech Hardware | 6.01% | |
| Software | 5.61% | |
| IT | 3.04% | |
| Electronic Equipment and Components | -1.75% | |
| Communications | -3.05% | |
| Semiconductors | -7.03% | |
Industry PE
- Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 157x.
- Analysts are expecting annual earnings growth of 31.1%, which is higher than its past year's earnings growth of 24.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 61% over the next 5 years.
- This is better than its past earnings decline of 3.6% per year.
- In contrast, the IT industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| A005930 Samsung Electronics | ₩55.10k | 8.9% +₩30.6t | -24.3% | PE11.7x | |
| A018260 Samsung SDSLtd | ₩148.20k | 9.0% +₩943.7b | 1.2% | PE16.2x | |
| A307950 Hyundai Autoever | ₩146.10k | 13.3% +₩468.9b | -14.8% | PE27.5x | |
| A009150 Samsung Electro-Mechanics | ₩110.90k | 3.8% +₩309.7b | -19.6% | PE15.5x | |
| A006400 Samsung SDI | ₩259.50k | 1.6% +₩267.5b | -45.0% | PE10.5x |
