There's Been No Shortage Of Growth Recently For LG Electronics' (KRX:066570) Returns On Capital
Aug 01
South Korean (KOSPI) Market Analysis & Valuation
UpdatedAug 02, 2024
DataAggregated Company Financials
Companies2605
- 7D2.4%
- 3M2.4%
- 1Y4.0%
- YTD2.1%
In the last week, the market has stayed flat, however the Financials sector stood out, gaining 4.1%. Meanwhile, the market is actually up 3.4% over the past year. Looking forward, earnings are forecast to grow by 29% annually.
Market Valuation and Performance
Has the South Korean Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 02 Aug 2024 | ₩2577.7t | ₩3557.5t | ₩130.0t | 12.3x | 19.8x | 0.7x |
| Sun, 30 Jun 2024 | ₩2598.5t | ₩3536.2t | ₩119.8t | 12.6x | 21.7x | 0.7x |
| Tue, 28 May 2024 | ₩2519.2t | ₩3468.0t | ₩111.7t | 13x | 22.6x | 0.7x |
| Thu, 25 Apr 2024 | ₩2499.7t | ₩3515.1t | ₩105.7t | 13x | 23.6x | 0.7x |
| Sat, 23 Mar 2024 | ₩2571.1t | ₩3540.0t | ₩106.1t | 14x | 24.2x | 0.7x |
| Mon, 19 Feb 2024 | ₩2467.0t | ₩3618.7t | ₩91.1t | 14.3x | 27.1x | 0.7x |
| Wed, 17 Jan 2024 | ₩2355.4t | ₩3641.0t | ₩106.2t | 14.6x | 22.2x | 0.6x |
| Fri, 15 Dec 2023 | ₩2345.5t | ₩3643.1t | ₩104.5t | 14.4x | 22.4x | 0.6x |
| Sun, 12 Nov 2023 | ₩2231.6t | ₩3678.4t | ₩108.6t | 12.8x | 20.5x | 0.6x |
| Tue, 10 Oct 2023 | ₩2238.8t | ₩3649.9t | ₩106.6t | 13x | 21x | 0.6x |
| Thu, 07 Sep 2023 | ₩2400.5t | ₩3651.5t | ₩108.1t | 13.9x | 22.2x | 0.7x |
| Sat, 05 Aug 2023 | ₩2427.1t | ₩3692.1t | ₩124.8t | 13.9x | 19.5x | 0.7x |
| Mon, 03 Jul 2023 | ₩2376.1t | ₩3669.5t | ₩133.6t | 14.4x | 17.8x | 0.6x |
| Wed, 31 May 2023 | ₩2373.8t | ₩3656.4t | ₩132.9t | 14.3x | 17.9x | 0.6x |
| Fri, 28 Apr 2023 | ₩2297.4t | ₩3594.7t | ₩156.8t | 13.5x | 14.6x | 0.6x |
| Sun, 26 Mar 2023 | ₩2214.6t | ₩3608.3t | ₩163.5t | 12.7x | 13.5x | 0.6x |
| Tue, 21 Feb 2023 | ₩2240.1t | ₩3627.0t | ₩185.8t | 12x | 12.1x | 0.6x |
| Thu, 19 Jan 2023 | ₩2130.1t | ₩3522.3t | ₩168.8t | 11.4x | 12.6x | 0.6x |
| Sat, 17 Dec 2022 | ₩2125.0t | ₩3521.2t | ₩168.2t | 11.4x | 12.6x | 0.6x |
| Mon, 14 Nov 2022 | ₩2216.7t | ₩3369.8t | ₩186.3t | 11.9x | 11.9x | 0.7x |
| Wed, 12 Oct 2022 | ₩1961.5t | ₩3333.7t | ₩187.1t | 10.9x | 10.5x | 0.6x |
| Fri, 09 Sep 2022 | ₩2148.7t | ₩3333.2t | ₩190.7t | 12.3x | 11.3x | 0.6x |
| Sun, 07 Aug 2022 | ₩2256.1t | ₩3184.2t | ₩189.7t | 13.3x | 11.9x | 0.7x |
| Tue, 05 Jul 2022 | ₩2055.1t | ₩3163.7t | ₩187.5t | 11.6x | 11x | 0.6x |
| Thu, 02 Jun 2022 | ₩2421.5t | ₩3146.1t | ₩188.9t | 14.2x | 12.8x | 0.8x |
| Sat, 30 Apr 2022 | ₩2436.0t | ₩3011.5t | ₩184.8t | 14.6x | 13.2x | 0.8x |
| Mon, 28 Mar 2022 | ₩2471.0t | ₩2985.2t | ₩178.3t | 15.5x | 13.9x | 0.8x |
| Wed, 23 Feb 2022 | ₩2452.2t | ₩2862.5t | ₩165.5t | 18.3x | 14.8x | 0.9x |
| Fri, 21 Jan 2022 | ₩2450.7t | ₩2851.2t | ₩155.9t | 15.9x | 15.7x | 0.9x |
| Sun, 19 Dec 2021 | ₩2571.0t | ₩2859.1t | ₩155.9t | 15.8x | 16.5x | 0.9x |
| Tue, 16 Nov 2021 | ₩2560.9t | ₩2746.3t | ₩144.1t | 16.8x | 17.8x | 0.9x |
| Thu, 14 Oct 2021 | ₩2461.2t | ₩2738.7t | ₩135.9t | 16.4x | 18.1x | 0.9x |
| Sat, 11 Sep 2021 | ₩2607.4t | ₩2757.8t | ₩137.5t | 18x | 19x | 0.9x |
| Mon, 09 Aug 2021 | ₩2688.7t | ₩2752.8t | ₩136.5t | 18.9x | 19.7x | 1x |
Price to Earnings Ratio
19.7x
Current Market PE
- Investors are optimistic on the South Korean market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 21.0x which is higher than its 3-year average PE of 17.1x.
Past Earnings Growth
- The earnings for South Korean listed companies have declined 3.7% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.8% 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.
Sector Trends
Which sectors have driven the changes within the South Korean Market?
| KR Market | 2.41% | |
| Financials | 5.46% | |
| Utilities | 5.04% | |
| Energy | 3.29% | |
| Healthcare | 3.04% | |
| Industrials | 2.99% | |
| Real Estate | 2.73% | |
| Tech | 2.44% | |
| Materials | 1.42% | |
| Consumer Staples | 0.78% | |
| Telecom | 0.29% | |
| Consumer Discretionary | -0.30% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading above its 3-year average PE ratio of 190x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 35.6%, which is higher than its past year's earnings growth of 10.8% per year.
- The Consumer Discretionary sector is the least preferred by investors for future growth, which is trading below its 3-year average of 10.1x.
Forecasted Growth
- Analysts are most optimistic on the Utilities sector, expecting annual earnings growth of 43% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Real Estate sector is expected to see its earnings grow by 5.8% 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 | Sector | |
|---|---|---|---|---|---|---|
| A005930 Samsung Electronics | ₩83.10k | 3.4% +₩18.3t | 20.8% | PE20.3x | Tech | |
| A207940 Samsung BiologicsLtd | ₩938.00k | 7.7% +₩4.8t | 16.2% | PE74.6x | Healthcare | |
| A329180 HD Hyundai Heavy IndustriesLtd | ₩214.00k | 20.6% +₩3.2t | 57.6% | PE257.2x | Industrials | |
| A000660 SK hynix | ₩194.60k | 2.4% +₩3.2t | 62.2% | PS3.3x | Tech | |
| A055550 Shinhan Financial Group | ₩59.80k | 9.7% +₩2.7t | 71.1% | PB0.6x | Financials |
