4 models fit HD Hyundai Electric Co., Ltd. and they partly agree: 2 of 4 land within 15% of the average.
Two or more of our models back this value.
Premium(i)Bronze44
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionHD Hyundai Electric Co., Ltd. (267260.KS)
Fair value (4 models)
KRW 374804
ACCE price target
KRW 485000
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously KRW 501118 since 13 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST; previously KRW 650000 since 19 Sept 2026, 00:00 CEST.
Price used: KRW 470000 at the close on 23 Oct 2026, 08:30 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
25.4% above
-20.3% to fair value
ACCE score
59
out of 100
1-year return
-37.0%
Dividend yield
1.59%
HD Hyundai Electric Co., Ltd. in four questions
Plain answers, details below
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Overview
ACCE thesis
HD Hyundai Electric manufactures medium and high-voltage switchgear, power transformers, and electrical distribution equipment for industrial and utility customers across Asia. The company benefits from structural tailwinds in grid modernization and electrification, particularly in South Korea and Southeast Asia where aging infrastructure requires replacement and renewable energy integration demands upgraded transmission capacity. Demand for its products is accelerating as utilities invest in grid resilience and data center operators build out power infrastructure to support AI compute clusters. Revenue growth of 26% year-over-year reflects this momentum, while operating margins of 25.1% and ROE of 43.6% demonstrate pricing power and capital efficiency in a capital-light manufacturing model. The valuation at 18x forward earnings appears reasonable given the structural nature of the demand cycle and the company's position as a regional incumbent with limited direct competition in its core segments.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
high
Valuation disconnect and quality mismatch
P/E 0.0 suggests earnings reporting or calculation anomaly. Despite strong fundamentals (ROE 43.6%, net margin 19.6%, revenue +26% YoY), ACCE Quality score is only 25/100, indicating material accounting or disclosure concerns warrant investigation.
moderate
Operating margin sustainability risk
Operating margin at 25.1% is exceptionally high for electrical equipment. EV/EBITDA of 17.6x paired with 45% earnings growth suggests market pricing in margin durability; compression would reset valuation sharply.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue and earnings growth of 26.0% year over year with a 5-year average of 24.7% shows sustained momentum.
Net margin of 19.6% and ROE of 43.6% demonstrate exceptional profitability and capital efficiency.
Analyst consensus price target of KRW 1118124.00 implies 84.5% upside from the current KRW 606000.00 share price.
Why it could disappoint
Forward P/E of 18.0x prices in continued growth, leaving limited margin for error if momentum slows.