Shinhan Financial Group SHG
South KoreaFinancial Services · Banks - RegionalUSD
98.36 USD (+27.6%)
1 analysts
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Shinhan Financial Group is a South Korean financial holding company offering a full range of banking, insurance, and asset management services through its subsidiaries, primarily in South Korea.
Key points
from its scores- ✓Good share-price trend9.2
- ✓High-quality business9.1
- ✓Attractive valuation7.0
- ✕Fragile balance sheet3.6
- !Risks to watch5.0
AI analysis
bottom line, main risk, context and newsFundamentals are solid and valuation is reasonable, but governance risk in South Korea justifies a risk premium that may limit upside potential in the short term.
Shinhan Financial Group shows moderate financial health (ROE 8.94%, ROA 0.69%) but exceptional moat quality (operating margin 44.83%) and attractive valuation (P/E 10.25, adjusted P/B 0.94), with strong momentum (9.25) and 22.5% earnings growth, although South Korea's governance risk is a structural drag.
The main risk is governance in South Korea: potential political interference in the group's management and weaker minority shareholder protection could prevent fundamental value from translating into investor returns.
Context and risks
Shinhan Financial Group operates in South Korea, a jurisdiction with elevated governance risk for minority shareholders, including a history of political interference in the management of large financial conglomerates and weaker institutional protection than in developed markets. This governance risk is not reflected in the company's financial metrics and justifies a significant penalty on the base risk.
Is Shinhan Financial Group stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 40% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.3 | 13.7 | −25% |
| Price / book | 0.8 | 1.9 | −55% |
| Price / sales | 2.4 | 3.5 | −32% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.0 out of 10 (median for Financial Services: 5.2).
Average analyst target: 98.36 USD, +27.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.6 (sector 5.5), Growth 6.7 (sector 6.9).
Classic formulas with standard assumptions (10.0% 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 Financial Services medianValuation
- P/E
- 10.3
- Forward P/E
- 7.6
- Price / book
- 0.8
- Price / sales
- 2.4
- PEG
- 5.10
- Market cap
- 36.3B USD
- Enterprise value
- −22.00T KRW
Profitability
- ROE
- 8.9%
- ROA
- 0.7%
- ROIC (approx.)
- 3.4%
- Gross margin
- 0.0%
- Operating margin
- 44.8%
- Net margin
- 26.2%
Solvency
- Total debt
- 215.17T KRW
- Net debt
- −70.56T KRW
- Cash
- 285.72T KRW
Growth
- Revenue growth
- +5.7%
- Earnings growth
- +22.5%
- EPS (TTM)
- 7.52 USD
- EPS (forward)
- 10.21 USD
Dividend
- Dividend yield
- 2.6%
- Payout
- 24.8%
Risk and market
- Beta
- 0.67
- Analyst consensus
- none (1)
- Target price
- 98.36 USD
- 52-week range
- 47.05 – 85.57
Recent news
All SHG news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Shinhan Financial Group
Is Shinhan Financial Group stock cheap or expensive?
On P/E and Price / book, it trades 40% below the Financial Services median on average. Valuation score: 7.0 out of 10 (median for Financial Services: 5.2). Average analyst target: 98.36 USD, +27.6% versus the price. This is not investment advice.
What score does Shinhan Financial Group get on MeridIAn Screener?
It scores 6.4 out of 10, rank 659 of 2,130 (better than 68% of the companies analysed). Its strongest category is Momentum (9.2) and its weakest, Financial health (3.6). Analysis of 08/10/2026.
What is Shinhan Financial Group's P/E ratio?
Its P/E is 10.3: the share price equals 10.3 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 7.6.
How much is Shinhan Financial Group worth on the stock market?
Its market capitalisation is 36.3B USD.
Does Shinhan Financial Group pay a dividend?
Yes: its dividend yield is 2.59% and it pays out 25% of its earnings.
How has Shinhan Financial Group stock performed over the last year?
It has risen 56.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 47.05 and 85.57 USD. Past performance does not guarantee future results.
What do analysts think of Shinhan Financial Group?
1 analysts cover it; their average recommendation is “none” and their average target is 98.36 USD (+27.6% versus the price). It is an estimate, not market data.