“The KOSPI could reach 7500”: Why foreigners are selling Samsung and SK hynix | Park Se-ik, Chesley Investment Advisory [Womae Sinbak / 26.10.28.Wed]
An independent exercise, not a statement by the video creator or verification of every claim in the video.
Will a low P/E remain low after earnings normalize?
A hypothetical company priced at 1000 won with annual earnings per share of 100 won has a P/E of 10. If the price stays unchanged but sustainable earnings per share are assumed to be 50 won, its P/E becomes 20. Applying the same multiple of 10 would imply 500 won. This is a sensitivity example showing how earnings assumptions change valuation, not a price target.
Check for yourself
- Are the earnings used a cyclical peak or a level sustainable over several years?
- How much of the return funding comes from recurring operating cash versus one-off asset sales?
Limits of application
All numbers are assumptions. Appropriate multiples, share counts, growth and cost of capital for an actual company are not calculated, and this is not a forecast of a particular stock’s decline.
- What to look for
- Examine why market valuations and foreign-investor flows may diverge from positive semiconductor earnings and shareholder-return news.
- Why it matters
- Separate forecasts, disclosures and execution, and compare earnings durability with capital allocation rather than judging value from large headline figures alone.
Timeline
8 segmentsThe final article stresses earnings durability and capital allocation rather than only the size of current profits. Index targets and sector-rotation scenarios depend on assumptions and do not establish a single cause of foreign selling. Using unusually high cyclical earnings as a permanent base can overstate the appeal of a low price-to-earnings ratio.