Korea Electric Power KEP
South KoreaUtilities · Utilities - Regulated ElectricUSD
15.00 USD (+34.8%)
1 analysts
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Korea Electric Power Corporation (KEP) is South Korea's state-owned electric utility, which generates, transmits, and distributes electricity across the country, with a business model regulated by the government.
Key points
from its scores- ✓Attractive valuation8.3
- ✕Weak growth2.0
- ✕Little competitive advantage2.5
- ✕Fragile balance sheet4.2
AI analysis
bottom line, main risk, context and newsThe cheap valuation is a value trap given the business deterioration, high leverage, and regulatory risk.
KEP trades at a P/E of 2.64 and a P/B of 0.40, reflecting a deteriorating business with a 76.5% decline in earnings and fragile financial health (net debt of 5.13x EBITDA, operating margin of 4.73%). The regulatory risk of politically set tariffs is the main drag for minority shareholders.
The main risk is political intervention in electricity tariffs, which compresses KEP's margins and profitability, along with its high leverage (5.13x EBITDA) making it vulnerable to a rising rate environment.
Context and risks
KEP is a state-controlled South Korean utility with a history of political intervention in electricity tariffs, which has compressed its operating margin to 4.73% and pushed its net debt to 5.13x EBITDA. South Korea's institutional quality is high, but politically set electricity prices are a real and recurring risk for minority shareholders, as evidenced by its weak return on invested capital (ROIC of 2.50%).
Is Korea Electric Power stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 69% below the Utilities median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 2.6 | 19.1 | −86% |
| EV / EBITDA | 5.9 | 12.2 | −52% |
| Price / book | 0.4 | 1.9 | −80% |
| Price / sales | 0.2 | 2.6 | −92% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.3 out of 10 (median for Utilities: 4.8).
Average analyst target: 15.00 USD, +34.8% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.2 (sector 5.8), Growth 2.0 (sector 5.8).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 2.6
- Forward P/E
- 3.9
- EV / EBITDA
- 5.9
- Price / book
- 0.4
- Price / sales
- 0.2
- PEG
- 0.44
- Market cap
- 14.3B USD
- Enterprise value
- 149.77T KRW
Profitability
- ROE
- 16.6%
- ROA
- 3.0%
- ROIC (approx.)
- 2.5%
- Gross margin
- 16.0%
- Operating margin
- 4.7%
- Net margin
- 8.0%
- Free cash flow
- 690.1B KRW
- FCF yield
- 3.6%
- Cash conversion
- 3%
Solvency
- Total debt
- 136.45T KRW
- Net debt
- 130.66T KRW
- Cash
- 5.79T KRW
- EBITDA
- 25.48T KRW
- Net debt / EBITDA
- 5.13
- Debt / equity
- 263.19
- Current ratio
- 0.44
- Quick ratio
- 0.24
Growth
- Revenue growth
- −0.1%
- Earnings growth
- −76.5%
- EPS (TTM)
- 4.21 USD
- EPS (forward)
- 2.82 USD
Dividend
- Dividend yield
- 4.7%
- Payout
- 12.2%
Risk and market
- Beta
- 0.82
- Analyst consensus
- none (1)
- Target price
- 15.00 USD
- 52-week range
- 10.78 – 23.41
Recent news
All KEP news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Korea Electric Power
Is Korea Electric Power stock cheap or expensive?
On P/E and EV / EBITDA, it trades 69% below the Utilities median on average. Valuation score: 8.3 out of 10 (median for Utilities: 4.8). Average analyst target: 15.00 USD, +34.8% versus the price. This is not investment advice.
What score does Korea Electric Power get on MeridIAn Screener?
It scores 5.0 out of 10, rank 1,700 of 2,130 (better than 19% of the companies analysed). Its strongest category is Valuation (8.3) and its weakest, Growth (2.0). Analysis of 08/10/2026.
What is Korea Electric Power's P/E ratio?
Its P/E is 2.6: the share price equals 2.6 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 3.9.
How much is Korea Electric Power worth on the stock market?
Its market capitalisation is 14.3B USD and its enterprise value, debt included, is 149.77T USD.
How much debt does Korea Electric Power have?
Its net debt (debt minus cash) is 130.66T KRW. That is 5.13 times its EBITDA; the Utilities median is 5.33.
Does Korea Electric Power pay a dividend?
Yes: its dividend yield is 4.67% and it pays out 12% of its earnings.
How has Korea Electric Power stock performed over the last year?
It has fallen 11.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 10.78 and 23.41 USD. Past performance does not guarantee future results.
What do analysts think of Korea Electric Power?
1 analysts cover it; their average recommendation is “none” and their average target is 15.00 USD (+34.8% versus the price). It is an estimate, not market data.