Stock Values
According to the Korea Exchange, the South Korean stock market posted a PER of 9.84 on March 17, much lower than 18.63 of the United States, 20.73 of India, 16.31 of Hong Kong, 16.10 of Australia, 16.04 of Japan, 15.09 of France and 14.94 of Britain.
Since KOSPI reached an all-time high of 2,228.96 points on May 2, 2011, the PER has continued to fall in South Korea unlike those of the major stock markets mentioned above. Specifically, the figure has increased by a factor of 5.39 in India and 4.73 in the United States but that of the South Korean stock market has decreased from 10.50 to 9.84 although KOSPI is currently close to its all-time high. The Korea Exchange explained that this continuous undervaluation is because South Korean companies’ best ever results have not been fully reflected in their stock prices.
Since May 2011, Nikkei 225 and S&P 500 have gained 95.1% and 74.7%, respectively. Meanwhile, KOSPI has declined by 2.9%. The PER is 7.79 for SK Hynix, 6.35 for Hyundai Motor Company and 11.91 for SK Telecom, almost half in comparison to those of Intel (14.9), GE (29.4) and AT&T (19.9).
Under the circumstances, an increasing number of investors are betting on an increase in South Korean stock prices. KOSPI recently exceeded 2,180 points, led by both foreign and institutional investors, to become closer to the top of the box in which it has moved for a couple of years.