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If you are wondering whether SK hynix is still reasonably priced after a strong run, a good starting point is to understand how its current share price lines up with different measures of underlying value.
The stock last closed at ₩1,604,000, with reported total returns of 24.1% over 7 days, 81.0% over 30 days, 136.9% year to date, and a very large gain over 1 year that is roughly 7 times the starting point.
Recent headlines have focused on SK hynix’s role in supplying memory for high performance computing and AI related demand, as well as its position within the global semiconductor supply chain. These themes help explain why investors have been focused on the stock’s long term prospects and pricing.
Simply Wall St currently assigns SK hynix a valuation score of 5 out of 6. This sets the scene for comparing traditional valuation approaches with a more holistic view of what the market might be pricing in by the end of this article.
Approach 1: SK hynix Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model takes estimates of the cash SK hynix could generate for shareholders in the future, then discounts those cash flows back into today’s money to arrive at an estimate of intrinsic value per share.
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 reported at about ₩39.0b. Analyst and extrapolated projections suggest free cash flow of about ₩146.7b in 2026 and roughly ₩347.2b by 2035, all in ₩, with Simply Wall St extending forecasts beyond the analyst horizon.
Discounting those projected cash flows results in an estimated intrinsic value of about ₩4,317,315 per share. Compared to the recent share price of ₩1,604,000, the DCF output implies that the stock is around 62.8% undervalued on these assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests SK hynix is undervalued by 62.8%. Track this in your watchlist or portfolio, or discover 229 more high quality undervalued stocks.
A000660 Discounted Cash Flow as at May 2026
Approach 2: SK hynix Price vs Earnings
For profitable companies, the P/E ratio is a useful yardstick because it directly relates what you pay for the stock to the earnings it currently produces. Investors usually accept a higher P/E when they expect stronger growth or see lower risk, and a lower P/E when earnings growth is more modest or risks are higher.
Story Continues
SK hynix currently trades on a P/E of 14.98x. This sits below the semiconductor industry average of 30.20x and well below the peer group average of 52.17x. On simple comparisons, that points to a lower earnings multiple than many listed semiconductor stocks.
Simply Wall St’s Fair Ratio for SK hynix is 60.51x. This is a proprietary estimate of what the P/E might be, given factors such as earnings growth, industry, profit margins, market cap and specific risks. Because it adjusts for these company level traits rather than just lining SK hynix up against broad averages, the Fair Ratio can offer a more tailored benchmark than industry or peer comparisons alone. With the Fair Ratio of 60.51x sitting well above the current P/E of 14.98x, the stock screens as undervalued on this measure.
Result: UNDERVALUED
KOSE:A000660 P/E Ratio as at May 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. On Simply Wall St you can use Narratives, which let you attach a clear story about SK hynix to the numbers you care about. This links your view of its AI memory opportunity, earnings and margins to a financial forecast, and then to a Fair Value that you can compare with the current price to decide whether the stock looks attractive or expensive. Each Narrative is available on the Community page and updates as news or earnings arrive. A very optimistic SK hynix Narrative might lean toward the higher fair values around ₩2,500,000, while a cautious Narrative might sit closer to the lower end around ₩255,245. This neatly captures how different investors can look at the same company and reach very different conclusions.
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: ₩1,685,583
Implied undervaluation vs last close: about 4.8%
Revenue growth assumption: 43.95%
Focuses on SK hynix as a key supplier of advanced memory for AI, with HBM, DRAM and high density NAND tied to data center and high performance computing demand.
Builds on large capacity projects such as M15X and Yongin, as well as long term collaborations with major AI and GPU partners, to support cash flow visibility.
Flags meaningful risks from geopolitics, heavy capital spending, competition, NAND softness and complex technology transitions that could challenge margins and returns.
🐻 SK hynix Bear Case
Fair value: ₩550,733
Implied overvaluation vs last close: about 65.2%
Revenue growth assumption: 10.57%
Highlights the possibility that rising capital expenditure, manufacturing complexity and global self sufficiency efforts in semiconductors limit SK hynix’s long run earnings power.
Emphasizes exposure to export controls and changes in access to key markets, especially China, which could affect revenue and pricing power.
Assumes more modest growth, lower margins and a reduced fair value, even while acknowledging ongoing AI demand and the company’s memory technology position.
Once you have seen both sides, you can decide which Narrative, if either, lines up better with your expectations for SK hynix and how comfortable you are with the trade off between AI growth potential and the risks around capex, regulation and competition.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SK hynix on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
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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