Stock Study Of The Day: "LG Electronic Woo"

Stock Study Of The Day: "LG Electronic Woo"

If the dollar begins to weaken, capital is likely to flow into the emerging market. In this situation, the Korean market can benefit, especially Samsung Electronics, Hyundai Motor, and LG Electronics.

LG Electronics is a large company that exports products around the world, creating an environment favorable to exporters in high exchange rates. While the stock prices of Samsung Electronics and Hyundai Motor have risen a lot recently, LG Electronics has not seen a relatively large increase.

LG Electronics' share price/earnings ratio (PER) was 27 times last year, and its estimated PER is expected to be 10 times this year, 8 times next year and 5 times in 26. The figure is based on data from Naver Securities, and its net profit is expected to rise sharply in the future. Net profit in 24 years is expected to more than double that of 23, 3 times that of 2013, and 4 times that of 26.

Currently, LG Electronics' stock price is 108,000 won. On the other hand, LG Electronics' stock price is 49,000 won, which is less than half the price of the main stock. Compared to Hyundai Motor Company or Samsung Motors, the price ratio with the main stock is more attractive.

As of July 9, Samsung Electronics' preferred share price is 78 percent, Hyundai Motor's preferred share price is 62 percent, and LG Electronics' preferred share price is 45 percent.

(Samjeonwoo KRW 68,000 / Samjeon KRW 87,000) = 78%
(Hyundai Motor Co., Ltd. KRW 171,000 / Hyundai Motor Co., Ltd. KRW 274,000) = 62%
(LG Electronics Co., Ltd. KRW 44,000 / LG Electronics Co., Ltd. KRW 109,000) = 45%

LG Electronics' dividend yield is 1.73%, higher than LG Electronics' 0.74% shareholder. This means that preferred stocks are more attractive in terms of dividends.

Even with the above simple information, LG Electronics seems to be worth the investment. However, rather than simply relying on Naver securities data, a more precise analysis is needed.

This article is a personal opinion, so please use it only as a reference for investment.