Forward PER and Samsung-SK Hynix Valuation: Still Cheap After Gains?

Maeil Business Newspaper examined, through its Jurini ABC series, whether Samsung Electronics and SK Hynix, often grouped in Korea as “Samjeon-nix,” can still be considered cheap after strong share-price gains, using the lens of forward PER. The previous lesson explained how a stock price is formed when EPS, or earnings per share, is multiplied by PER, the price-earnings multiple that reflects market expectations. This installment focuses on forward PER, which values a company with future numbers rather than only current results. The key point is that even if a stock has already risen, its valuation can look different if future earnings forecasts also increase. Investors need to check the relationship between EPS and PER, along with multiples based on expected earnings, instead of looking only at the share-price rise. Source: mk.co.kr