SK Square Co Ltd (402340) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of SK Square Co Ltd stock KRW 406,603, price KRW 809,000, that is 49.7% below the price, quality 78 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Meets all rules:fair value rule,strong quality, uptrend
Our calculation puts a fair price 50% below what the stock costs today.
Quality 78/100
Highly profitable · 94.3% net margin (TTM)
Low debt
Generates free cash flow
0.2% dividend yield · Well covered
Ranks above peers(10/14)
Broad data
Costs just 3 times its yearly profit.
Expensive Growth(revenue 3y +32.3 %/yr in KRW)
Wide moat92/100 · thin data
Fair value 406,603 KRW · Strongly overvalued (−49.7%)
⟳ Cyclical
Risks from the AI analysis
🚩Price drop: Dilution worries from dual-listing rules questioning hit sentiment🚩Regulators question Solidigm dual-listing plan sparking dilution worries🚩Dependence on single SK Hynix stake🚩Samsung HBM competition eroding margins🚩Regulatory hurdles on Solidigm listing
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
59‑month range 31,958 KRW – 1,970,000 KRW · fair‑value band 144,078 KRW – 528,088 KRW · the 809,000 KRW price screens above the 406,603 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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SK Square Co., Ltd. invests in semiconductor, and information and communication technologies in South Korea, China, Asia, the United States, and Europe. SK Square Co., Ltd. was founded in 2021 and is headquartered in Icheon-si, South Korea.
Stock analysis
SK Square Co Ltd (402340) currently trades at 809,000 KRW, while our model-based Fair Value estimate is 406,603 KRW, 50% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of 3,384,364 KRW per share, and 12 of the 26 models we run sit above the 809,000 KRW price.
Bear case: the Growth DCF group reads lowest at 62,200 KRW, and 14 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: 144,078 KRW (bear) to 528,088 KRW (bull), the price of 809,000 KRW sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 78/100 (high quality), in the Technology sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
SK Square Co Ltd reported revenue of 10.5T KRW in FY2025 versus 1.1T KRW in FY2021, a compound +73.8%/yr. Reported net income was 8.8T KRW in FY2025, compounding +120.2%/yr from FY2021.
Key figures
Market cap 107T KRW (≈ $78.5B) Large · P/E ratio 3.0 · P/S ratio 3.07 · EPS (TTM) 249,226 KRW · Dividend yield 0.2% · Net margin 94.3% · Return on equity 84.9% · Return on assets (EBIT) 7.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 92 out of 100 (low confidence).
What moves the price
The share trades about 59% below its 52-week high and 212% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at −50%, 402340 screens richer than that median.
Fair Value models
Bear144,078 KRWFair Value 406,603 KRWBull528,088 KRW
Price 809,000 KRW · Downside -49.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (210,355 KRW per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+77.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+32.3%
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years), in KRW ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +90.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+90.7%
Dividend (yield on the price)0.2%
Profit margin 2021 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.37% → 84%
⚠ Approximate: the rate leans on 2025, which sits 351% above its own trend.
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+74.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (South Korea: IMF forecast 2.1% a year to 2030, 2.1% from 2016 to 2025) that is about +70.9% a year for the price.
AI conclusion: High reported margins point to profitability from the SK hynix stake yet limited evidence leaves any durable moat unclear while governance layers amplify structural risks.
Main risk: Nearly all of SK Square's net asset value derives from its stake in SK Hynix, so any downturn in memory chip demand or SK Hynix performance could sharply reduce the holding company's value and cash flows.
Bull case: Successful AI-focused investments and divestitures of non-core assets could gradually reduce SK Square's reliance on SK Hynix and build independent value streams.
Bear case: Persistent concentration combined with Samsung's HBM gains or regulatory blocks on listings might keep SK Square tethered to volatile memory cycles with limited diversification.
SK Square's position as the main shareholder in SK hynix ties its fortunes closely to subsidiary Solidigm and its attempted U.S. listing. Regulators recently questioned the plan over dual-listing rules, sparking dilution worries that hit sentiment across the group. Does clarifying these governance layers reduce the holding-company discount over time, or does the semiconductor exposure keep amplifying such structural risks?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductors · 370 stocks
Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score78 · Top 25%
Fair Value upside−49.7% · Below median
Profitability
Return on equity (12 months)84.9% · Top 25%
Return on assets28.9% · Top 25%
Net margin (12 months)94.3% · Top 25%
Operating margin (12 months)98.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)967.2% · Top 25%
Dividend yield (12 months)0.2% · Bottom 25%
Valuation Multiplesvs Semiconductors median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "SK Square Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/402340
Frequently asked questions
Is SK Square Co Ltd (402340) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of 406,603 KRW versus a price of 809,000 KRW, about 50% lower (overvalued).
What is the fair value of 402340?
Our model-based fair value for SK Square Co Ltd is 406,603 KRW (as of Nov 6, 2026), built from audited fundamentals. The current price: 809,000 KRW.
What is the quality score of 402340?
SK Square Co Ltd has a Quality Score of 78/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for SK Square Co Ltd (402340)?
Our model-based price target is the fair value of 406,603 KRW (as of Nov 6, 2026) from 26 valuation models. Cautious scenario 144,078 KRW, optimistic scenario 528,088 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the SK Square Co Ltd stock forecast for 2026?
Our models put fair value at 406,603 KRW, about 50% lower versus a price of 809,000 KRW (overvalued). Cautious scenario 144,078 KRW, optimistic scenario 528,088 KRW. The calculation is refreshed regularly with new filings.
Does SK Square Co Ltd pay a dividend?
SK Square Co Ltd currently shows a dividend yield of 0.19% relative to its recent price (as of Nov 6, 2026).
What growth is priced into SK Square Co Ltd (402340)?
For today's price to be fair in a discounted-cash-flow model, SK Square Co Ltd would have to grow free cash flow by +74.5 % per year for five years (discount rate 12.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 4 years revenue grew +73.8 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of 402340 use?
Our models discount SK Square Co Ltd at 12.1 %: a base by market capitalisation (large), damped by beta 2.45, country premium for South Korea. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For SK Square Co Ltd that is +74.5 % per year a year over ten years, using the same discount rate (12.1 %) and the same formula as our fair value.
How much growth has SK Square Co Ltd (402340) delivered so far?
Over the past 4 years revenue at SK Square Co Ltd grew +73.8 % a year. The price currently implies +74.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of SK Square Co Ltd (402340) growing?
The median revenue growth in the sector is +11.3 % a year. That is the yardstick for the growth priced into SK Square Co Ltd (+74.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of SK Square Co Ltd (402340)?
The free-cash-flow yield on the price is 0.33 %: that much free cash flow SK Square Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (12.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of SK Square Co Ltd (402340)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SK Square Co Ltd it is 406,603 KRW per share (as of Nov 6, 2026), against a price of 809,000 KRW. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is SK Square Co Ltd stock overvalued or undervalued in 2026?
As of Nov 6, 2026, 402340 trades above its calculated fair value: price 809,000 KRW, fair value 406,603 KRW, a gap of about −50% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 402340?
No. The price is what the market pays today (809,000 KRW); the fair value is what the company's own numbers justify (406,603 KRW). For SK Square Co Ltd the two are 402,397 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is SK Square Co Ltd worth?
The market values SK Square Co Ltd at about 107T KRW (market capitalisation, as of Nov 6, 2026). Per share that is 809,000 KRW; our models calculate a fair value of 406,603 KRW per share.
What do the bullish and bearish scenarios say about 402340?
Our models span a range for SK Square Co Ltd: cautious scenario 144,078 KRW, base 406,603 KRW, optimistic 528,088 KRW per share (as of Nov 6, 2026, price 809,000 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 402340?
SK Square Co Ltd trades at a price-to-earnings ratio of 3.0 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 406,603 KRW is built from several models across several years. Other multiples: P/B 3.9, P/S 3.1, EV/EBITDA 3.2.
How solid is the balance sheet of SK Square Co Ltd (402340)?
Balance-sheet figures for SK Square Co Ltd (as of Nov 6, 2026): return on equity 84.9%. They feed the Quality Score of 78/100, which measures business quality independently of the share price.
How far is 402340 from its 52-week high?
SK Square Co Ltd trades at 809,000 KRW, about 59% below its 52-week high of 1,970,000 KRW and 212% above the low of 259,661 KRW (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of 406,603 KRW is for.
Which stocks are comparable to SK Square Co Ltd?
From the same area (Technology) we also value NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company, Broadcom Inc, Micron Technology, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is SK Square Co Ltd stock attractive at the current price?
The data as of Nov 6, 2026: price 809,000 KRW, calculated fair value 406,603 KRW (−50%), Quality Score 78/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 402340 calculated?
We run SK Square Co Ltd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 406,603 KRW, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. SK Square Co Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of SK Square Co Ltd (402340)?
The closing price on Nov 5, 2026 was 809,000 KRW. Our model-based fair value is 406,603 KRW, about 50% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SK Square Co Ltd right now?
A high-quality business (quality 78/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case (528,088 KRW). The favourable scenario is already priced in. The model range is unusually wide (144,078 KRW to 528,088 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Key figures of SK Square Co Ltd
How large is the market capitalisation of SK Square Co Ltd (402340)?
The market capitalisation of SK Square Co Ltd is 107T KRW (≈ $78.5B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of SK Square Co Ltd (402340)?
The price-to-sales ratio of SK Square Co Ltd is 3.07 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of SK Square Co Ltd (402340)?
Earnings per share at SK Square Co Ltd are 249,226 KRW (price ÷ EPS = P/E 3.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of SK Square Co Ltd (402340)?
The dividend yield of SK Square Co Ltd is 0.2% (payout 0.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of SK Square Co Ltd (402340)?
The net margin of SK Square Co Ltd is 94.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of SK Square Co Ltd (402340)?
The return on equity (ROE) of SK Square Co Ltd is 84.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of SK Square Co Ltd (402340)?
On an EBIT basis the return on assets of SK Square Co Ltd is 7.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of SK Square Co Ltd (402340)?
The operating margin of SK Square Co Ltd is 98.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SK Square Co Ltd (402340)?
Revenue at SK Square Co Ltd is growing +967% versus a year earlier (3y avg +32.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at SK Square Co Ltd (402340)?
Earnings per share at SK Square Co Ltd are growing +12.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does SK Square Co Ltd (402340) carry?
The net debt of SK Square Co Ltd is 1.0T KRW (fiscal year 2022, ≈ 3.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026