Among South Korea's two semiconductor giants, SK hynix's share price has surged far faster than Samsung Electronics', flipping their forward price-to-earnings (PER) ratios for the first time ever this year. Samsung Electronics, whose stock gains have been held back by unprecedented strike risks, is seeing even its status as Kospi's top blue chip shaken, analysts say.
According to the Korea Exchange on the 13th, SK hynix closed 7.68% higher at 1.976 million won, hitting a new intraday high of 1.99 million won. Samsung Electronics rose 1.79% to close at 284,000 won. Over the past month, SK hynix returned 78.68% versus Samsung Electronics' 35.44% — more than double.
As a result, the two companies' 2026 annual forward PER gap has reversed. According to financial data provider FnGuide, based on the day's closing price, the 2026 forward PER stood at 6.77 times for Samsung Electronics and 6.79 times for SK hynix — a 0.02-point gap with SK hynix ahead. It is the first time SK hynix has surpassed Samsung Electronics on forward PER. Three months ago, the figures were 8.08 times for Samsung Electronics and 5.28 times for SK hynix — a 2.80-point gap — and a month ago the gap had narrowed to 5.70 times versus 4.66 times.
The annual forward PER is the ratio of the current share price to expected annual earnings per share (EPS), reflecting share-price levels against projected earnings. A higher ratio suggests overvaluation, a lower one undervaluation. Previously, SK hynix's stock was relatively undervalued against its earnings, but market expectations for the two companies have now converged.
The 12-month forward PER — measuring share prices against expected earnings over the next 12 months — stood at 5.8 times for Samsung Electronics and 5.1 times for SK hynix as of the 11th, but the gap is believed to have narrowed as well given recent differences in share-price gains. Based on the day's closing prices, the market capitalizations also diverged: 1,660.34 trillion won for Samsung Electronics and 1,408.30 trillion won for SK hynix — a 252 trillion won difference.
The outcome is a disappointment for Samsung Electronics. Amid the memory boom, both companies saw their earnings outlooks and share prices climb quickly, but Samsung Electronics's earnings-outlook upgrade was larger than SK hynix's. According to FnGuide, Samsung Electronics' consensus annual EPS estimate for this year rose 102.15% over three months, from 20,763 won to 41,972 won. Over the same period, SK hynix's EPS estimate rose 78.76%, from 162,776 won to 290,980 won. While the "denominator" — earnings outlook — was raised more sharply for Samsung Electronics, the "numerator" — share price — rose faster for SK hynix.
Analysts say the domestic No. 1 premium Samsung Electronics long enjoyed is fading. SK hynix preempted the high-bandwidth memory (HBM) market and overtook Samsung Electronics in operating profit last year, erasing the view that it was relatively undervalued, they say.
Unlike SK hynix, which wrapped up performance-bonus negotiations with its union last year, Samsung Electronics faces strike risks — another burden. On the day, JPMorgan said, "We estimate the operating-profit impact from Samsung Electronics' wage hike at a minimum of -7% to a maximum of -12%." The market expects Samsung Electronics and SK hynix share prices to move at similar paces only once the union risk is resolved.
"The disappearance of Samsung Electronics' share-price premium conversely means the re-rating of SK hynix's valuation has ended," said one securities-industry official. "Now that the two companies' earnings and valuations stand on the same footing, SK hynix may find it difficult to deliver gains more than twice those of Samsung Electronics going forward."
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