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If you are wondering whether SK hynix still offers value after its huge run or if you might be late to the party, this article walks through the numbers so you can frame your own view on the stock.
The share price last closed at ₩1,128,000, with returns of 9.8% over 7 days, 11.4% over 30 days, 66.6% year to date and a very large gain over 1 year and 3 years.
These moves have kept SK hynix in focus as investors track how the company is positioned in memory and AI related chip demand, alongside broader interest in semiconductor names. Recent coverage has also highlighted how sentiment around capital spending and supply conditions can quickly influence expectations for the stock.
Right now, SK hynix has a valuation score of 5 out of 6. The next sections will break this down using standard valuation approaches, before finishing with a way to think about valuation that goes beyond any single model.
Approach 1: SK hynix Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model takes estimates of future cash the business could generate and discounts those cash flows back into today’s money using a required rate of return. It aims to give you a single estimate of what the entire company might be worth right now.
For SK hynix, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month free cash flow is ₩26.62b. Analyst inputs and subsequent extrapolations by Simply Wall St extend out to 2035, with projected free cash flow in 2028 of about ₩218.08b and later years continuing to be modeled using estimated growth rates.
Bringing these projected cash flows back to today and adding a terminal value produces an estimated intrinsic value of about ₩4,731,577.52 per share. Versus the recent share price of ₩1,128,000, the DCF output implies the shares trade at a 76.2% discount to that intrinsic estimate, which indicates that, on this model alone, the stock appears materially undervalued.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests SK hynix is undervalued by 76.2%. Track this in your watchlist or portfolio, or discover 233 more high quality undervalued stocks.
A000660 Discounted Cash Flow as at Apr 2026
Approach 2: SK hynix Price vs Earnings
P/E is a widely used yardstick for profitable companies because it connects what you pay today with the earnings the business is currently generating. It helps you see how many years of current earnings the market is effectively pricing into the share price.
Story Continues
What counts as a “normal” P/E usually reflects a mix of growth expectations and risk. Higher growth potential or lower perceived risk can justify a higher multiple, while slower growth or higher uncertainty tend to be associated with a lower one.
SK hynix currently trades on a P/E of 18.44x. That sits below the Semiconductor industry average of 29.88x and the peer group average of 44.43x. Simply Wall St’s Fair Ratio metric for SK hynix is 58.86x. This Fair Ratio is a proprietary estimate of what the P/E might be, given factors such as the company’s earnings growth profile, profit margins, industry, market value and risk characteristics.
Compared with simple peer or industry comparisons, the Fair Ratio aims to be more tailored, as it folds in these company specific drivers. Setting the current 18.44x P/E against the 58.86x Fair Ratio suggests the shares trade below that Fair Ratio based assessment.
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 understand valuation, so Narratives are introduced as a simple way for you to attach a clear story to the numbers, by setting your own view on SK hynix’s future revenue, earnings and margins, linking that story to a forecast and then to a Fair Value that can be compared directly with the current price on Simply Wall St’s Community page.
Each Narrative on the platform updates automatically when new information such as news or earnings is added. This means your Fair Value view is kept aligned with fresh data rather than a one off model.
For SK hynix, one investor might lean toward a higher Fair Value near ₩2,500,000 based on very optimistic assumptions about AI driven memory demand. Another might anchor closer to the low end around ₩255,245 with more cautious expectations. By comparing those Fair Values with the current share price you can decide whether the company looks closer to your version of attractively priced or fully priced.
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: ₩2,264,946.87
Implied discount to Fair Value: 50.2%
Assumed revenue growth rate: 80.72%
Assumes SK hynix benefits from strong AI driven demand for HBM, DDR5 and advanced NAND, with capacity expansions and long term customer agreements supporting higher revenue and margins.
Builds in very optimistic analyst assumptions for revenue, earnings and profit margins out to 2029, with a lower future P/E multiple applied to those earnings than the current KR Semiconductor industry level.
Flags material risks around geopolitics, memory price volatility, heavy capital expenditure and slower NAND recovery, and encourages you to stress test the bullish numbers against your own expectations.
🐻 SK hynix Bear Case
Fair Value: ₩550,733.12
Implied premium to Fair Value: 104.8%
Assumed revenue growth rate: 10.57%
Assumes tighter revenue growth and lower profit margins as rising capital investment needs, manufacturing complexity and geopolitical limits on market access weigh on earnings power.
Uses more cautious analyst inputs for revenue, earnings and margins through 2028, with a valuation anchored to the lowest Fair Value estimate in the analyst range.
Highlights that large AI related projects and memory demand could still support the business, but frames them as factors that might reduce downside rather than fully offset the headwinds.
These two Narratives bracket a wide range of possible outcomes, so the useful question is where your own assumptions sit between them and how that compares with the current share price.
See what the community is saying about SK hynix
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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