Shinhan Financial Group Co., Ltd. (SHG)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
Shinhan Financial Group Co., Ltd. trades at USD71.55, which is 119% below the USD156.79 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 46 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Shinhan Financial Group Co., Ltd.
Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea, Vietnam, and Japan. The company operates in six segments: Banking, Credit card, Securities, Insurance, Credit, and Others. It offers credit, lending and receiving deposits; credit cards, short-term and long-term card loan services, installment financing, and leases; securities trading, consignment trading, and underwriting; life and non-life insurance business; facility rental and new technology business financing; and real estate trust, investment advisory services, venture business investment, and other businesses. Shinhan Financial Group Co., Ltd. was founded in 1982 and is based in Seoul, South Korea.
SHG passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Shinhan Financial Group Co., Ltd. (SHG) undervalued?
Against our discounted cash flow estimate of USD156.79, SHG at USD71.55 is 119% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is SHG's P/E ratio?
SHG trades at 10.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.