Samsung Electronics and SK Hynix Still Cheap? Forward PER Explains Future Value

Maeil Business Newspaper examined in its Junior Investor ABC section whether Samsung Electronics and SK Hynix can still be considered cheap after strong share-price gains, using the idea of forward PER. The previous installment explained how EPS, a company’s earnings report card, and PER, the market’s expectation multiple, combine to form a stock price. This topic shifts the focus from current earnings to future numbers. Forward PER was introduced as a way to judge whether a stock is expensive or cheap based on expected future profit. The article presented the point that if earnings forecasts improve along with the share price, the valuation view can change, making it an important reference for investors. Source: mk.co.kr