Samsung Electronics·SK hynix at historic lows in PER, warning against blindly 'scooping them up'
The forward PER of Samsung Electronics and SK hynix for 12 months has fallen to 4.8 times and 5.3 times, respectively. Hwang San-hae, a researcher at LS Securities, diagnosed this point as entry into a 'value trap' and warned investors not to buy based solely on a low PER.
The forward PER of Samsung Electronics and SK hynix for 12 months has entered the range of historic lows at 4.8 times and 5.3 times, respectively. This is important for investors because a warning has been issued that a low PER may not necessarily signal undervaluation.
In a report dated 9 days, Hwang San-hae, a researcher at LS Securities, diagnosed that the memory industry had entered a 'Value Trap' period. The report pointed out that the forward PER had declined as a recent fall in stock prices coincided with upward revisions to earnings forecasts.
According to the report, earnings forecasts are being sharply revised upward on the back of the artificial intelligence (AI) semiconductor boom. At the same time, stock prices have fallen, creating a structure in which the PER has dropped to historic lows.
Analyst Hwang warned that a low PER should not be viewed simply as a signal that a stock is “cheap.” The report stated that it is necessary to examine the risks surrounding the valuation of the memory industry.
The report suggested that investment decisions should consider the quality and sustainability of earnings forecasts, as well as supply-and-demand factors. It stated that specific response measures and the timing of purchases should be confirmed through the full report.
Sources: 파이낸셜뉴스 증권
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