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Meritz Financial Group (138040) Fair Value & Analysis

Financial Services · KR · Market cap 19.3T KRW

MF Meritz Financial Group 138040 · KO
Price125,700 KRW
Fair Value87,706 KRW
Upside-30.2%
Quality40/100
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Mixed Growth
Solidly profitable · 11.9% net margin
High debt · negative free cash flow
Mixed vs. peers (4/8)
Moderate moat 62/100
Evidence: High Range 65,779 KRW – 109,632 KRW Share as image

Fair value as of: Jul 13, 2026

From 14 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from 87,625 KRW to 87,706 KRW (+0.1%) since Jun 26, 2026. Share price +9.9% over the past month.

Below-average quality, and screening another 30% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (109,632 KRW). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

146,200 KRW 12,346 KRW Fair Value 87,706 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range 12,346 KRW – 146,200 KRW · fair‑value band 65,779 KRW – 109,632 KRW · the 125,700 KRW price screens above the 87,706 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

Full chart & analysis →

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Analysis

Meritz Financial Group (138040) currently trades at 125,700 KRW, while our model-based Fair Value estimate is 87,706 KRW, implying the stock looks roughly 30.2% overvalued today. We read business quality at 40/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Meritz Financial Group generated revenue of 17.7T KRW at a net margin of 13.0%. Revenue declined 0.7% year over year. It earns a return on equity of 21.2%. Net debt stands at 20.6T KRW. Fundamentals as of Jul 13, 2026

Our scenario range runs from 65,779 KRW (bear case) to 109,632 KRW (bull case); at 125,700 KRW, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 26% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 16% fair-value upside, at -30%, 138040 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 99,388 KRW 138,926 KRW 859,589 KRW 76
Gordon GGM 19,620 KRW 42,834 KRW 72,070 KRW 70
Growth-Adj P/E 177,593 KRW 253,705 KRW 329,816 KRW 68
All 14 models by family
DCF Models
Owner Earnings 47,420 KRW 209,237 KRW 501,792 KRW 31
Earnings-Based
Graham-Dodd 94,933 KRW 431,627 KRW 592,095 KRW 54
Lynch FV 112,970 KRW 161,385 KRW 209,801 KRW 50
PEG = 1.0 112,970 KRW 161,385 KRW 209,801 KRW 46
Dividend Discount
Gordon GGM 19,620 KRW 42,834 KRW 72,070 KRW 70
DDM Multi-Stage 19,620 KRW 35,088 KRW 44,640 KRW 61
Multiples
P/E Multiple 209,410 KRW 279,214 KRW 349,017 KRW 63
P/S Multiple 48,779 KRW 65,039 KRW 81,299 KRW 58
P/B Multiple 140,956 KRW 187,941 KRW 234,927 KRW 55
EV/EBIT 27,845 KRW 85,380 KRW 142,914 KRW 53
EV/EBITDA 28,494 KRW 71,807 KRW 54
Asset-Based
NCAV (Graham) 31,324 KRW 41,974 KRW 62,647 KRW 50
Economic Profit
Residual Income 99,388 KRW 138,926 KRW 859,589 KRW 76
Growth Earnings
Growth-Adj P/E 177,593 KRW 253,705 KRW 329,816 KRW 68

Widest divergence: Growth Earnings (253,705 KRW) versus Dividend Discount (35,088 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 17.7T KRW
Revenue growth (YoY) -0.7%
Net margin 13.0%
Return on equity 21.2%
Free cash flow −6.5T KRW FY2025
Operating margin 33.4%
More key figures
EPS growth (YoY) -3.7%
Net debt 20.6T KRW FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 33 · Market factors (momentum, volatility) 50

Profitability 45
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 50
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Meritz Financial Group Inc., together with its subsidiaries, provides various financial services in South Korea and internationally. The company operates through Insurance, Securities, Capital, and Others segments.

Full company description

Meritz Financial Group Inc., together with its subsidiaries, provides various financial services in South Korea and internationally. The company operates through Insurance, Securities, Capital, and Others segments. It offers various insurance contracts, including general non-life insurance comprising fire, marine, personal accident, engineering, liability, comprehensive, authority, guarantee, and other special types of insurance; and auto insurance products, which include personal, business, commercial, motorcycle, and others; and long-term non-life insurance products, such as long-term damage, property, personal accident, driver, savings, disease, nursing care, pension savings damage, etc. The company engages in undertaking risk through reinsurance cessions and joint underwriting. It also provides products, such as natural disaster insurance. In addition, the company engages in merchant banking and security; private equity fund; management trust; financial services; real estate leasing; and SPC for asset securitization businesses. Meritz Financial Group Inc. was founded in 2007 and is headquartered in Seoul, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Meritz Financial Group reported revenue of 4.3T KRW in FY2025 versus 4.2T KRW in FY2021, a compound +0.2%/yr. Reported net income was 2.3T KRW in FY2025, compounding +30.7%/yr from FY2021.

Growth Quality 36/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
4.3T KRW
Latest YoY
+1.2%
Avg. growth/yr (3Y)
−3.0%
Avg. growth/yr (5Y)
+4.0%
Avg. growth/yr (14Y)
+13.3%
Revenue +0.2%/yr
FY21 4.2T KRW
FY22 4.7T KRW
FY23 4.1T KRW
FY24 4.2T KRW
FY25 4.3T KRW
Net income +30.7%/yr
FY21 789B KRW
FY22 1.1T KRW
FY23 2.0T KRW
FY24 2.3T KRW
FY25 2.3T KRW

138040 screens 30% overvalued. Compare with Huatai Securities Co →

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Cite: Fair Value Calculator (2026). "Meritz Financial Group Fair Value". https://www.fairvalue-calculator.com/stock/138040

Peer Group

Capital Markets · 424 stocks

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.

Quality Score 42 · Below median
Fair Value upside −30% · Below median
Return on equity (TTM) 21% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 12% · Below median
Operating margin (TTM) 51% · Top 25%
Revenue growth 51% · Above median
Debt / equity 3.21× · Higher than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 11
FUTURE 100 · sector 91
PAST 85 · sector 31
HEALTH 0 · sector 93
DIVIDEND 0 · sector 37

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Huatai Securities Co HTSC $0.2700 $0.0400 -85%
Mirae Asset Securities Co 006800 38,750 KRW 31,645 KRW -18%
Korea Investment Holdings 071050 239,000 KRW 318,825 KRW +33%
NH Investment & Securities Co 005940 31,000 KRW 37,133 KRW +20%
Samsung Securities Co 016360 107,700 KRW 126,487 KRW +17%
Motilal Oswal Financial Services Limited MOTILALOFS ₹967.00 ₹299.65 -69%
Kiwoom Securities Co 039490 322,000 KRW 358,091 KRW +11%
SSI Securities Corporation SSI 24,250 VND 28,021 VND +16%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 120.22 ARS -62%
Daishin Securities Co 003540 26,200 KRW 46,660 KRW +78%

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Frequently asked questions

Is Meritz Financial Group (138040) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of 87,706 KRW versus a price of 125,700 KRW, about −30% (overvalued).
What is the fair value of 138040?
Our model-based fair value for Meritz Financial Group is 87,706 KRW (as of Jul 13, 2026), built from audited fundamentals. The current price is 125,700 KRW.
What is the quality score of 138040?
Meritz Financial Group has a Quality Score of 40/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Meritz Financial Group (138040)?
Meritz Financial Group reported trailing-twelve-month revenue of about 17.7T KRW (latest available figure, as of Jul 13, 2026).
What is the net profit margin of 138040?
The net profit margin of Meritz Financial Group is about 13.0%, meaning it keeps roughly 13.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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