Samsung Electronics' Forward PER Hits 4.41x, Lowest in Decade, on July 13

According to FnGuide data as of July 13, Samsung Electronics' 12-month forward price-to-earnings ratio (PER) hit 4.41x, the lowest level in a decade at the bottom 2.7% of its 10-year distribution. SK Hynix' forward PER stood at 4.69x. Bloomberg reported that South Korea's KOSPI index, heavily weighted by these two chipmakers, traded at a forward PER of 5.78x—lower than during the 2008 global financial crisis.

However, most brokerages value cyclical memory chip businesses using price-to-book ratio (PBR) rather than PER, citing earnings volatility and sustainability concerns. Among 24 brokers providing SK Hynix price targets in recent months, 18 employed PBR. A minority, including SK Securities, began using PER, citing artificial intelligence investment cycles and long-term supply agreements (LTAs) as structural tailwinds that could sustain demand.