3 models fit Shinhan Financial Group Co Ltd American Depositary Shares and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver61
Valued as a bank: Residual income, P/E comparison, Dividend discount, and Graham number.
ACCE opinionShinhan Financial Group Co Ltd American Depositary Shares (SHG)
Fair value (3 models)
$79.59
ACCE price target
$71.00
Rating
Undervalued
Horizon
12 months
Fair value published on 17 Oct 2026, 00:00 CEST; previously $42.83 since 2 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $88.00 since 21 Sept 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 16:06 CEST.
Price used: $66.30 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount, Graham number, P/E comparison, and Residual income.
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
16.7% below
+20.0% to fair value
ACCE score
70
out of 100
Analysts
100% buy
1 covering
P/E
8.8x
forward 6.5x
1-year return
+28.7%
Dividend yield
3.01%
Shinhan Financial Group Co Ltd American Depositary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Shinhan Financial Group is a South Korean bank holding company whose American Depositary Shares trade in New York, with banking, credit card, securities and insurance arms under one roof. The structural argument is scale and cheapness: at a 35.4 billion dollar market cap, a 10.0 trailing P/E and a 7.4 forward P/E, the market is pricing the group as a low-growth domestic lender despite 5.7% revenue growth and a 44.8% operating margin. The return on equity of 8.9% is the weak point and the reason the discount may persist, so the question for a deeper look is whether that ROE can rise toward the level its earnings growth implies. The name scores 75 on our model and sits in no major index, which limits passive demand and may be part of why the multiple is this low. Worth a closer look for the earnings trajectory and capital return, not for a re-rating story.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
ROE below cost of capital
ROE of 8.9% is weak for a financial services company and likely below Shinhan's cost of equity, suggesting value destruction at current capital levels.
moderate
ACCE score deterioration
Score fell 4 points in 90 days (75 to 71). Quality subscore of 55 is notably weak, dragging overall confidence despite strong valuation and margins.
moderate
High leverage for bank
Debt/Equity of 2.48 is elevated even for a regional bank, limiting financial flexibility in stress scenarios or rising rate environments.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-10-09 · prices to Oct 23, 2026
Why it could do well
Shinhan trades at just 7.4x forward earnings with a 19.1% free cash flow yield, suggesting deep undervaluation.
Shinhan generates a 26.2% net margin while returning cash to shareholders through 1.9% annual share buybacks and a 2.7% dividend.
Why it could disappoint
Return on equity of 8.9% and return on invested capital of 2.2% are well below cost of capital, destroying shareholder value.
A 2.48x debt to equity ratio leaves the bank vulnerable to credit losses if Korean household or small business lending deteriorates.
As a Korean ADR, currency depreciation of the won directly erodes dollar returns regardless of local earnings performance.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 13, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where SHG's valuation models land
Price
$66.30
Model fair value
$79.59
Model range
$53.79 to $119
Fair value $79.59
Price $66.30
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
Graham number
P/E comparison
Residual income
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores
Shinhan Financial Group's ACCE composite score fell from 100 to 79, a significant 21-point decline that signals potential headwinds across key metrics.
2026-05-06
Held by ETFs
ETFs we cover that hold Shinhan Financial Group Co Ltd American Depositary Shares among their largest holdings, by weight.
EWY · iShares MSCI South Korea ETF1.7% of the fund
Holdings as of 2026-10-24
Recommendation history, last 12 months
Date
Type
New
Previous
Price
24 Oct 2026, 16:06 CEST
Rating
Undervalued
first publication
$66.30
18 Oct 2026, 01:52 CEST
ACCE price target
$71.00
$88.00
$70.31
17 Oct 2026, 00:00 CEST
Fair value
$79.69
$42.83
$71.33
2 Oct 2026, 00:00 CEST
Fair value
$42.83
$43.39
$77.67
27 Sept 2026, 00:00 CEST
Fair value
$43.39
$43.87
$80.95
21 Sept 2026, 00:00 CEST
ACCE price target
$88.00
first publication
$80.14
20 Sept 2026, 00:00 CEST
Fair value
$43.87
$44.68
$80.14
11 Sept 2026, 00:00 CEST
Fair value
$44.68
$45.22
$81.71
8 Sept 2026, 00:00 CEST
Fair value
$45.22
$44.46
$82.28
30 Aug 2026, 00:00 CEST
Fair value
$44.46
$46.42
$79.15
Price
+26.2% · 1Y
Ask anything about SHG
Answered from Shinhan Financial Group Co Ltd American Depositary Shares fundamentals + recent valuations. Every number shows its source and date.
This stock Peer Peer median weaker → stronger
P/Ebetter than 100% of peers
low 8.8x8.8xhigh 18.8x
ROEbetter than 17% of peers
low 5%9%high 19%
Div yieldbetter than 67% of peers
low 0.1%3.0%high 5.9%
Peers
Prices Oct 23, 2026
Company
Price
Fair value
vs fair value
P/E
ROE
Quality
Score
SHGShinhan Financial Group Co Ltd American Depositary Shares