Exchange: "KOSPI 200 Undervalued Compared to China and Taiwan"

KOSPI 200 PER 11.3
Low PBR and Dividend Yield as Well

[Image source=Yonhap News]

The price-to-earnings ratio (PER) and price-to-book ratio (PBR) of KOSPI 200 companies were found to be lower than those of both developed and emerging countries.

According to the 'Comparison of Investment Indicators between the KOSPI Market and Major Overseas Markets' released by the Korea Exchange on the 3rd, the PER of KOSPI 200 was surveyed at 11.3. This is significantly lower than developed countries such as the United States (20.4), Japan (16.3), and France (13.8). It is also lower than emerging countries such as China (13.7), India (23.6), and Taiwan (12.6).

The PBR of KOSPI 200 was recorded at 0.9. This was also lower than the United States (4.2), Japan (1.4), France (2.0), China (1.4), India (3.2), and Taiwan (2.2).

The dividend yield of KOSPI 200 was 2.2%, similar to that of developed countries (2.2%), but lower than that of emerging countries (3.2%).

Looking at all companies listed on the KOSPI, the situation did not change significantly. The PER of companies listed on the KOSPI was 13.3, slightly up from 11.1 the previous year. PER is an indicator comparing the net profit of listed companies with the current stock price level. Despite a decrease in market capitalization due to falling stock prices, the net profit of listed companies shrank more significantly, which is interpreted as the reason for the rise in the KOSPI PER.

The price-to-book ratio (PBR) was 1.0, down from 1.1 the previous year. PBR is an indicator comparing the net assets of listed companies with the current stock price level. The reason for the PBR decline is that although the total capital of KOSPI-listed companies increased, stock prices showed weakness.

The dividend yield of KOSPI-listed companies rose to 2.0% from 1.8% last year. Last year, the total dividends of KOSPI-listed companies amounted to 37.7 trillion won, slightly up from 37.5 trillion won in 2021. However, as market capitalization decreased, the dividend yield increased.

This content was produced with the assistance of AI translation services.