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LG Energy Solution, Ltd (373220) Fair Value & Analysis

Industrials · KR · Market cap 78.2T KRW

LE LG Energy Solution, Ltd 373220 · KO
Price360,000 KRW
Fair Value201,455 KRW
Upside-44.0%
Quality33/100
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Expensive Growth
Loss-making · -6.8% net margin
Moderate debt · negative free cash flow
Trails peers (1/10)
Narrow moat 16/100
Evidence: Low Range 131,491 KRW – 201,455 KRW Share as image

Fair value as of: Jul 16, 2026

From 6 valuation models · updated 24 days ago

Share price +14.1% over the past month.

Below-average quality, and screening another 44% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (201,455 KRW). The favourable scenario is already priced in.
  • Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

624,000 KRW 268,000 KRW Fair Value 201,455 KRW Jan 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

54‑month range 268,000 KRW – 624,000 KRW · fair‑value band 131,491 KRW – 201,455 KRW · the 360,000 KRW price screens above the 201,455 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

LG Energy Solution, Ltd (373220) currently trades at 360,000 KRW, while our model-based Fair Value estimate is 201,455 KRW, implying the stock looks roughly 44.0% overvalued today. The Quality Score stands at 33/100 (below-average quality), in the Industrials 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: low).

Over the trailing twelve months, LG Energy Solution, Ltd generated revenue of 23.5T KRW at a net margin of -6.8%. Revenue declined 2.5% year over year. It earns a return on equity of -3.6%. Net debt stands at 18.3T KRW. Fundamentals as of Jul 16, 2026

Our scenario range runs from 131,491 KRW (bear case) to 201,455 KRW (bull case); at 360,000 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 32% below its 52-week high and 28% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -53% fair-value upside, at -44%, 373220 screens cheaper 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
ROIC Compounder 6,699 KRW 14,278 KRW 72
EPV 6,699 KRW 14,278 KRW 59
EV/EBITDA 159,745 KRW 229,708 KRW 299,672 KRW 54
All 6 models by family
Earnings-Based
EPV 6,699 KRW 14,278 KRW 59
Multiples
EV/EBIT 23,201 KRW 47,650 KRW 72,098 KRW 53
EV/EBITDA 159,745 KRW 229,708 KRW 299,672 KRW 54
EV/Revenue 2,204 KRW 24,639 KRW 47,074 KRW 43
Asset-Based
NCAV (Graham) 43,196 KRW 57,882 KRW 86,391 KRW 50
Economic Profit
ROIC Compounder 6,699 KRW 14,278 KRW 72

Widest divergence: Asset-Based (57,882 KRW) versus Earnings-Based (6,699 KRW). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Revenue (TTM) 23.5T KRW
Revenue growth (YoY) -2.5%
Net margin -6.8%
Return on equity -3.6%
Free cash flow −6.6T KRW FY2025
Operating margin -3.2%
More key figures
EPS growth (YoY) +85.6%
Net debt 18.3T KRW FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 34 · Market factors (momentum, volatility) 32

Profitability 9
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 23
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 82
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

LG Energy Solution, Ltd. provides energy solutions worldwide. The company offers automotive batteries, which include pouch-type battery cells, modules/packs, and battery management system products for use in electric vehicle batteries; mobility and IT batteries for various applications in IT devices, such as smartphones and laptops, as well as light …

Full company description

LG Energy Solution, Ltd. provides energy solutions worldwide. The company offers automotive batteries, which include pouch-type battery cells, modules/packs, and battery management system products for use in electric vehicle batteries; mobility and IT batteries for various applications in IT devices, such as smartphones and laptops, as well as light electric vehicles, electric bicycles, power tools, and wireless earphones; and energy storage systems that are used in power grids, UPS, and commercial and residential applications. It operates in South Korea, China, and the United States. LG Energy Solution, Ltd. was founded in 2020 and is headquartered in Seoul, South Korea. LG Energy Solution, Ltd. is a subsidiary of LG Chem, Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LG Energy Solution, Ltd reported revenue of 23.7T KRW in FY2025 versus 17.9T KRW in FY2021, a compound +7.3%/yr. Reported net income was −1.1T KRW in FY2025.

Growth Quality 32/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
23.7T KRW
Latest YoY
−7.6%
Avg. growth/yr (3Y)
−2.6%
Avg. growth/yr (5Y)
+74.5%
Revenue +7.3%/yr
FY21 17.9T KRW
FY22 25.6T KRW
FY23 33.7T KRW
FY24 25.6T KRW
FY25 23.7T KRW
Net income
FY21 793B KRW
FY22 767B KRW
FY23 1.2T KRW
FY24 −1.0T KRW
FY25 −1.1T KRW

373220 screens 44% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "LG Energy Solution, Ltd Fair Value". https://www.fairvalue-calculator.com/stock/373220

Peer Group

Electrical Equipment & Parts · 528 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 33 · Bottom 25%
Fair Value upside −44% · Below median
Return on assets 1% · Below median
Net margin (TTM) -7% · Bottom 25%
Operating margin (TTM) -3% · Bottom 25%
Revenue growth -3% · Bottom 25%
Debt / equity 0.77× · Higher than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

EV/EBITDA 2.7× · Cheaper than 75% of peers
PEG 3.36× · Pricier 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 0
FUTURE 0 · sector 57
PAST 0 · sector 26
HEALTH 62 · sector 97
DIVIDEND 0 · sector 18

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%
Hyosung Heavy Industries Corporation 298040 2,789,000 KRW 1,065,378 KRW -62%

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Frequently asked questions

Is LG Energy Solution, Ltd (373220) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 201,455 KRW versus a price of 360,000 KRW, about −44% (overvalued).
What is the fair value of 373220?
Our model-based fair value for LG Energy Solution, Ltd is 201,455 KRW (as of Jul 16, 2026), built from audited fundamentals. The current price is 360,000 KRW.
What is the quality score of 373220?
LG Energy Solution, Ltd has a Quality Score of 33/100. 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 revenue of LG Energy Solution, Ltd (373220)?
LG Energy Solution, Ltd reported trailing-twelve-month revenue of about 23.5T KRW (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 373220?
The net profit margin of LG Energy Solution, Ltd is about -6.8%, meaning it is currently running at a net loss. 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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