SK is the holding company at the top of the SK Group. Rather than making products itself, it owns stakes in affiliates such as SK Innovation, SK Telecom, and SK Square, and earns money from their dividends and results. First-quarter 2026 consolidated revenue reached ₩36.8 trillion, up 18.9% from a year earlier, and both consolidated operating and net profit jumped sharply as the HBM boom at SK Hynix, consolidated through the SK Square subsidiary, flowed through. What stands out lately is that SK's market cap (about ₩43 trillion) is less than half the market value of its listed affiliate stakes (about ₩82 trillion) — the wide discount typical of a holding company. That discount, however, can narrow or widen depending on subsidiary share prices, dividends, and cash flow.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue fell 0.6% year over year (3-year trend: falling).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 18.9% higher than a year earlier.
- ROE is 6.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 1.5%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2022-12-31
Largest shareholder Chey Tae-won 17.5% (individual)
Controlling bloc incl. related parties 24.88%
With the controlling bloc holding 25%, control is maintained but the free float is relatively large.
Net asset value (NAV) assessment Undervalued48% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| SK Biopharmaceuticals | 64% |
| SK Innovation | 52.09% |
| SK Networks | 43.9% |
| SKC | 40.64% |
| SK Square | 32.14% |
| SK Telecom | 30.57% |
🔎 In-depth analysis
- SK does not make products directly; it sits at the very top of the SK Group as a holding company.
- It earns money in two main ways.
- One is the dividends and equity-method earnings it receives from stakes in affiliates such as SK Innovation (about 55%), SK Telecom (about 31%), SK Square (about 31%), SKC, SK Networks, and SK Ecoplant.
- The other is the investments and businesses SK runs itself in advanced materials, bio, and green energy.
- In particular, SK Square is the largest shareholder of SK Hynix (about 20%), so through SK Square, SK is heavily linked, indirectly, to Hynix's results.
- In short, SK's value is set less by "how much this company earns" and more by "which subsidiaries it holds, and how much of them."
- The latest close is ₩610,000 and market capitalization is ₩44.2 trillion.
- The price sits below its 20-day line (₩705,250) and above its 60-day line (₩579,042).
- With the short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a supplementary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 43.4, a neutral level.
- The one-month change is +5.3%, the three-month change is +95.2%, and the position versus the 52-week high is -28.9%.
- Relative strength versus the KOSPI is 86 (1-99, converting the past year's return versus the index with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 14% of all stocks by strength.
- Over the past three months it outpaced the index by 43.6%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Let us walk through the metrics at a beginner's level.
- The P/E ratio (how many times one year's earnings the price is) is 27.68x, and P/B (how many times book shareholders' equity the price is) is 1.76x.
- In a holding company, though, these two figures should not be taken at face value.
- Book shareholders' equity records subsidiary stakes at their old "acquisition cost," understating them.
- As a result, equity is booked below the actual value of the stakes, and P/B looks higher than it really is.
- ROE (how much is earned on equity in a year) is 6.3%, an average level.
- The debt-to-equity ratio is 507%, which is high.
- This is a structural figure inflated by consolidating finance and energy subsidiaries, and it is common at holding companies.
- Let us also look at metrics that reflect debt.
- Net debt (total borrowings minus cash) is about ₩47 trillion, and EV/EBITDA (enterprise value divided by operating profit before depreciation) is 9.5x.
- Free-cash-flow yield (actual cash earned relative to market cap), however, is negative.
- With large investments continuing, cash is still a net outflow at this stage.
- A holding company's results swing widely with the situation of its subsidiaries.
- Consolidated net profit fell from ₩5.7 trillion in 2021 to losses in both 2023 and 2024, then turned positive at ₩1.6 trillion in 2025.
- The direction changed there.
- First-quarter 2026 consolidated revenue reached ₩36.8 trillion, up 18.9% from a year earlier, and consolidated operating profit jumped sharply to ₩3.7 trillion.
- The key driver of this recovery is SK Hynix, consolidated through the SK Square subsidiary.
- Demand for AI-server high-bandwidth memory (HBM) has exploded, Hynix's earnings have surged, and those results are flowing up into SK's consolidated figures.
- The company believes HBM supply will keep falling short of demand for some time, so this direction is likely to work in SK's favor for a while.
- That said, a holding company's net profit contains a large share of non-cash equity-method valuation and one-off items.
- It is therefore hard to judge annual earnings by simply multiplying one quarter's figure.
- Recent disclosures are largely of a kind fitting for a holding company.
- In June 2026 it filed a corporate governance report, and in May it disclosed its large business group status.
- At the subsidiary and affiliate level, there was a run of disclosures on acquisitions and disposals of shares in other companies, disposals of tangible assets, debt guarantees, and investment-decision matters.
- This shows that the group as a whole is actively rebalancing its portfolio and buying and selling assets.
- The dividend is ₩8,000 per share.
- The company maintains the basic holding-company structure of returning dividends received from subsidiaries to its own shareholders.
- Let us weigh the strengths and cautions in balance.
- The strength is clear.
- The market value of SK's listed affiliate stakes is about ₩82 trillion, while SK's own market cap is about ₩43 trillion.
- The company's value is less than half the value of its holdings — sitting at the top end of the holding-company discount (about 48%).
- On top of that, the Hynix link (via SK Square), which carries a large share of the value, is in the middle of the HBM boom.
- The HBM shortage is expected to persist beyond 2027.
- In short, the assets themselves are improving while the company's price has not kept pace.
- The cautions are also clear.
- Net profit is driven by subsidiary equity-method valuation and swings sharply each quarter.
- The debt-to-equity ratio is high and own cash flow is still a net outflow.
- Above all, there is no guarantee the holding-company discount will "surely narrow someday." If subsidiary share prices wobble, SK wobbles with them.
- In sum, the undervaluation appeal stands out while HBM demand and subsidiary values hold, but the stock can weaken if the memory cycle turns or the holding-company discount becomes entrenched.
🔎 Valuation vs peers Undervalued
Compared against Korea's leading group holding companies — LG, CJ, and Hanwha — since holding companies are best judged by the discount to the value of their holdings.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Corp | 21.19x | 0.54x | 2.57% |
| CJ Corporation | 27.91x | 0.77x | 2.75% |
| Hanwha | 17.34x | 0.55x | 3.15% |
A holding company's P/E and P/B should not be taken at face value; it should be judged by the discount to the value of its holdings. SK's P/B of 1.72x looks higher than LG, CJ, and Hanwha (0.55-0.8x), but this is an illusion created by book conventions that record subsidiary stakes at acquisition cost. On the proper basis — net asset value (NAV) — the market cap of about ₩43 trillion sits against listed stakes worth about ₩82 trillion, a discount of about 48%. That is at the top end of the usual holding-company discount range (30-50%). On top of this, the Hynix link that carries a large share of the value, and SK Innovation, are in undervalued territory, coinciding with the benefit of the HBM super-cycle. The trailing P/E of 27x is a residue of the earnings inflection just after the 2023-2024 losses, so there is no need to overstate it as a burden. All told, the company's price is depressed relative to its holdings, so we judge it undervalued. One should note, however, that there is no guarantee the holding-company discount will narrow.
Price history Close · MA20 · MA60
The latest close is ₩610,000 and the market capitalization is ₩44.2 trillion. The price sits below its 20-day moving average (₩705,250) and above its 60-day moving average (₩579,042). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 43.4, a neutral level. The one-month change is +5.3%, the three-month change is +95.2%, and the position relative to the 52-week high is -28.9%. Relative strength versus the KOSPI is 86 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 86% of all stocks. Over the past three months it outpaced the index by 43.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +43.64% / 6M +31.68% / 12M +26.24%
Key metrics vs whole-market median
Valuation
The P/E of 27.68x is above the whole-market median (13.81x). The P/B of 1.76x is above the whole-market median (1.15x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.3%, above the whole-market average (5.0%). The operating margin is 1.5%. The debt ratio is 507.5%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $84.5B | $81.8B | $81.3B | -0.56% ↑ faster |
| Operating profit | $3.2B | $1.6B | $1.2B | -24.10% ↑ faster |
| Net profit | -$514.8M | -$856.8M | $1.1B | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $64.4B | $89.2B | $84.5B | $81.8B | $81.3B |
| Operating profit | $3.2B | $5.3B | $3.2B | $1.6B | $1.2B |
| Net profit | $3.8B | $2.6B | -$514.8M | -$856.8M | $1.1B |
| Revenue CAGR | 4-yr avg 6.00% | ||||
Revenue fell 0.6% year over year (2023 ₩127.4 trillion → 2024 ₩123.4 trillion → 2025 ₩122.7 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 24.1% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.0%. The two-year revenue CAGR is -1.9%. In the most recent quarter (Q1 2026), revenue was 18.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
Points to watch
- Revenue fell 0.6% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-06-01FilingCorporate governance report disclosed — a periodic public update on the holding company's board operations, shareholder policy, and other governance matters.Limited direct impact on the share price, but a base reference for gauging the direction of shareholder returns and governance. Source
- 2026-05-29FilingLarge business group status disclosed — a periodic public update on the composition of SK Group's affiliates and its investment structure.A reference for confirming the subsidiary portfolio structure that underpins the holding company's value (medium-term). Source
- 2026-05-28FilingDecision to acquire and dispose of shares and equity securities of other companies at the subsidiary level — group-wide portfolio rebalancing underway.The composition of the holding company's net asset value can change as assets are bought and sold (medium-term). Source
- 2026-05-21FilingMultiple disclosures of key management matters at subsidiaries, including capital reductions, disposals of tangible assets, and debt guarantee decisions.Restructuring and cash flows at the subsidiary level feed into consolidated results and financials (medium-term). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Operating-holding-company status and subsidiary stake structure | SK approx. 55%, SK approx. 31%, SK approx. 31% | — | Confirmed | link |
| 2025 consolidated net profit (attributable to controlling shareholders) | ₩1.60 trillion, EPS ₩22,034 | — | Unverified | link |
| Discount of market cap to NAV (market value of listed stakes held) | approx. ₩82 trillion approx. ₩43 trillion, approx. 48% | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-28Amended filing
- 2026-05-28Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-20OwnershipLargest-shareholder ownership change report
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.