In the last week, the South Korean market has remained flat, yet it has experienced a 3.8% increase over the past year, with earnings anticipated to grow by 30% annually in the coming years. In this context of steady growth and promising future earnings, identifying stocks that are priced below their estimated value can present compelling opportunities for investors seeking to capitalize on potential market inefficiencies.
Name | Current Price | Fair Value (Est) | Discount (Est) |
T'Way Air (KOSE:A091810) | ₩2940.00 | ₩5544.03 | 47% |
PharmaResearch (KOSDAQ:A214450) | ₩225000.00 | ₩424282.09 | 47% |
Sejin Heavy Industries (KOSE:A075580) | ₩7390.00 | ₩14743.96 | 49.9% |
Cosmecca Korea (KOSDAQ:A241710) | ₩77700.00 | ₩147702.09 | 47.4% |
TSE (KOSDAQ:A131290) | ₩53300.00 | ₩99749.67 | 46.6% |
Lutronic (KOSDAQ:A085370) | ₩36700.00 | ₩63217.94 | 41.9% |
Shinsung E&GLtd (KOSE:A011930) | ₩1605.00 | ₩2941.18 | 45.4% |
Global Tax Free (KOSDAQ:A204620) | ₩3830.00 | ₩6405.75 | 40.2% |
Kakao Games (KOSDAQ:A293490) | ₩17220.00 | ₩29657.37 | 41.9% |
Hotel ShillaLtd (KOSE:A008770) | ₩45850.00 | ₩76012.74 | 39.7% |
Here we highlight a subset of our preferred stocks from the screener.
Overview: ST Pharm Co., Ltd. offers custom manufacturing services for active pharmaceutical ingredients and intermediates both in South Korea and internationally, with a market cap of ₩2.19 trillion.
Operations: ST Pharm Co., Ltd. generates revenue through its Raw Material Manufacturing segment, contributing ₩236.78 billion, and the Clinical Trial Site Consignment Research Institute, which adds ₩36.38 billion.
Estimated Discount To Fair Value: 26.8%
ST Pharm Ltd. is trading at ₩109,100, significantly below its estimated fair value of ₩148,993.44, making it highly undervalued based on discounted cash flow analysis. Despite recent shareholder dilution and share price volatility, the company's earnings have grown 67.5% annually over the past five years and are forecast to grow 37.36% per year going forward—outpacing the Korean market's expected growth rate of 30.3%.
Overview: Cosmecca Korea Co., Ltd. is involved in the research, development, manufacture, and sale of skincare products both in South Korea and internationally, with a market cap of ₩829.84 billion.
Operations: The company's revenue is primarily derived from cosmetics, amounting to ₩558.96 billion, along with a smaller contribution from technology fees totaling ₩3.17 billion.
Estimated Discount To Fair Value: 47.4%
Cosmecca Korea is trading at ₩77,700, significantly below its estimated fair value of ₩147,702.09, indicating a strong undervaluation based on discounted cash flow analysis. The company's revenue is projected to grow 14.8% annually, surpassing the Korean market's expected growth of 10.4%. However, its earnings growth forecast of 21.6% per year lags behind the market's anticipated rate of 30.3%, despite a notable past year's profit increase of over 200%.
Overview: T'Way Air Co., Ltd. offers air transportation services both within South Korea and internationally, with a market cap of ₩632.61 billion.
Operations: The company's revenue primarily comes from its Aviation Business segment, which generated ₩1.45 billion.
Estimated Discount To Fair Value: 47%
T'Way Air, trading at ₩2,940, is significantly undervalued compared to its estimated fair value of ₩5,544.03 according to discounted cash flow analysis. Despite recent shareholder dilution and high share price volatility, earnings are projected to grow 23.39% annually over the next three years. The company's revenue growth forecast of 11.1% per year outpaces the Korean market's average but trails behind in profit growth expectations relative to market benchmarks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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