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Wondering if SK hynix is still reasonably priced after its big run, or if you are late to the story? This breakdown focuses squarely on what the current share price could imply about value.
The stock closed at ₩876,000, with returns of 29.4% year to date and a 1 year gain of 383.6%, on top of multi year returns that are several multiples of the starting level.
Recent coverage has focused on SK hynix as a key memory supplier for AI related demand in data centers and high end devices, which has kept the stock in the spotlight for many investors. There has also been ongoing commentary around capacity plans and capital spending in the broader semiconductor sector, giving context for how investors think about future cash flows for SK hynix.
Even with this backdrop, SK hynix currently has a valuation score of 5 out of 6. The next sections walk through how different methods such as multiples and cash flow models assess the stock, and then finish with a broader way to think about value that goes beyond the numbers alone.
Approach 1: SK hynix Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model projects the cash a company could generate in the future and then discounts those amounts back to what they might be worth today.
For SK hynix, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in ₩. The latest twelve month free cash flow is ₩26.62b. Analyst and extrapolated estimates suggest free cash flow of ₩99.30b in 2026, rising to ₩346.32b in 2035, with Simply Wall St extending the projections beyond the years where analyst inputs are available.
When all those future cash flows are discounted back using this DCF approach, the estimated intrinsic value comes out at about ₩4,113,200 per share. Compared with the recent share price of ₩876,000, this implies the stock is 78.7% undervalued based on these assumptions and inputs.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests SK hynix is undervalued by 78.7%. Track this in your watchlist or portfolio, or discover 247 more high quality undervalued stocks.
A000660 Discounted Cash Flow as at Apr 2026
Approach 2: SK hynix Price vs Earnings
P/E is a common way to look at valuation for companies that are generating profits, because it links the price you pay directly to the earnings the business is producing today. What counts as a reasonable P/E usually reflects how fast earnings are expected to grow and how risky those earnings are, with higher growth or lower perceived risk often supporting a higher multiple.
Story Continues
SK hynix currently trades on a P/E of 14.32x. That sits below the Semiconductor industry average of 23.01x and well below the peer average of 38.97x. Simply Wall St also provides a proprietary “Fair Ratio” for SK hynix of 53.56x. This Fair Ratio is an estimate of the P/E that might be appropriate for the company after considering factors such as its earnings growth profile, industry, profit margins, market cap and specific risks.
Because the Fair Ratio is tailored to SK hynix, it can be more informative than a simple comparison to broad industry or peer averages, which may not reflect the company’s particular mix of growth, risk and profitability. With the current P/E of 14.32x sitting well below the Fair Ratio of 53.56x, this approach indicates that the shares may be trading at a discount on an earnings basis.
Result: UNDERVALUED
KOSE:A000660 P/E Ratio as at Apr 2026
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Upgrade Your Decision Making: Choose your SK hynix Narrative
Earlier it was mentioned that there is an even better way to think about valuation, and on Simply Wall St that means using Narratives, which let you turn your view of SK hynix into a clear story that connects your assumptions about future revenue, earnings and margins to a Fair Value that can be compared directly with today’s price in the Community page. This is where millions of investors share their work and where Narratives automatically refresh when new news or earnings arrive. For SK hynix, you might see one investor building a very optimistic Narrative that lines up with Fair Value around ₩2,500,000, while another uses a more cautious view closer to ₩255,245. That spread helps you decide which story you agree with and whether the current price looks high or low against your own numbers.
For SK hynix, however, we will make it really easy for you with previews of two leading SK hynix Narratives:
🐂 SK hynix Bull Case
Fair value in this bullish Narrative: ₩1,320,166.
At the last close of ₩876,000, this view implies the shares are about 33.7% below that fair value.
Implied revenue growth assumption: 46.0% a year.
AI focused memory products such as HBM and advanced DRAM are expected to support premium pricing and higher margins.
Large scale capacity projects and long term partnerships with major AI and GPU customers are used to support cash flow visibility.
Analysts in this camp are comfortable with higher earnings and margin assumptions, even after factoring in risks around geopolitics, heavy capex and competition.
🐻 SK hynix Bear Case
Fair value in this bearish Narrative: ₩550,733.
At the last close of ₩876,000, this view implies the shares are about 37.9% above that fair value.
Implied revenue growth assumption: 10.6% a year.
Geopolitical tension, export controls and national chip programs in key regions are treated as ongoing headwinds to SK hynix’s market access and pricing power.
Rising capital spending needs and manufacturing complexity are seen as pressure points for free cash flow and margins.
This view assumes more modest revenue growth, lower profitability and a tighter valuation multiple than bullish analysts, leading to a lower fair value anchor.
If you want to see the full detail behind both of these stories and how other investors are framing SK hynix, you can move from these previews straight into the Narratives on Simply Wall St, compare the numbers with your own expectations and decide which version of the story feels closer to your view.
Do you think there’s more to the story for SK hynix? Head over to our Community to see what others are saying!
KOSE:A000660 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 000660.
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