Listed Stocks are 87% undervalued

The stock prices for nine of ten listed stocks are below their intrinsic values.

According to the Korea Stock Exchange(KSE) on Monday, a study made on intrinsic value of 389 Dec. account closing companies(excluding finance, loss-making and supervised companies), which submitted their 1H figures, showed that 86.9% of the listed companies had share prices lower than their intrinsic value.

Intrinsic value is a figure calculated by weighting net asset value per share and profit value. In case the present share price is lower than the intrinsic value, a stock is deemed to be undervalued and overvalued when the price is higher than the intrinsic value.

The average intrinsic value per share for the listed companies studied was 51,794 won while the average share price was 27,554 won as of August 25th, only a 53.2% level relative to the intrinsic value. This means that listed stocks are trading at a 46.8% discount relative to the intrinsic value.

TaeKwang Industries had the highest intrinsic value at 1,009,729 won per share with SK Telecom, Namyang, Lotte Confectionary, Samsung Electronics, KISWIRE Ltd, BYC, and POSCO Ltdrounding up the top 10.