LG Electronics (066570) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
LG Electronics is a diversified electronics company that makes money from home appliances such as refrigerators, washing machines, and TVs; from automotive infotainment and parts (vehicle components); and from heating, ventilation, and air conditioning (HVAC) that cools buildings and data centers. In Q1 2026 it posted revenue of ₩23.7 trillion and operating profit of ₩1,673.7 billion (up 32.9% year over year), a record for a first quarter, and this single quarter's net profit of ₩1,005.1 billion already exceeded full-year 2025 net profit (₩960.6 billion). The key point to watch is that while a vehicle-components business with a ₩100 trillion order backlog and an HVAC business broadening into AI data-center cooling lift earnings, a share price that looked expensive on last year's basis actually looks low on this year's earnings; however, the caution that appliance and TV margins could be squeezed again if tariffs or a demand slowdown appear must be viewed together.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “IT Hardware & Equipment” (Semiconductors & IT Components), a type typically read first through forward P/E.
IT hardware and equipment makers see orders and earnings swing with their customers' investment cycles and new-product launches, so what matters is the profit still to come, not the profit already booked. That is why forward P/E, based on expected earnings, is the first lens here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 1.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.3% higher than a year earlier.
- ROE is 4.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.2%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder LG Corp. 35.26% (corporate)
Controlling bloc incl. related parties 35.27%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis Reading
LG Electronics makes money along four main lines. First, home appliances (H&A) such as refrigerators, washing machines, and air conditioners are the largest revenue pillar. Second, TVs and the webOS content and advertising platform. Third, vehicle components (VS) such as instrument clusters, infotainment, and EV parts that go into cars. Fourth, heating, ventilation, and air conditioning (HVAC) that cools buildings, factories, and data centers. Recently the company's center of gravity has been shifting from consumer appliances to business-to-business (B2B). In Q1 2026, B2B revenue was ₩6.5 trillion, 36% of the total. Vehicle components in particular posted a record quarterly revenue of ₩3,064.4 billion, with an order backlog contracted for future sale reaching about ₩100 trillion. The HVAC business is broadening its market with chillers and liquid-cooling equipment that cool AI data centers.
The latest close is ₩175,200 and the market capitalization is ₩28.5 trillion. The price sits above its 20-day moving average (₩172,680) and below its 60-day moving average (₩211,157). 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 48.3, a neutral level. The one-month change is -7.3%, the three-month change is +13.1%, and the position relative to the 52-week high is -55.4%. Relative strength versus the KOSPI is 79 (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 80% of all stocks. Over the past three months it outpaced the index by 40.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The headline valuation is on a 2025 basis. The P/E (share price relative to one year's earnings) looks high at 32.9x. But this number is inflated because 2025 net profit was temporarily depressed. The P/B (share price relative to net asset value) is 1.12x, not greatly expensive relative to asset value. The P/S (share price relative to revenue) is 0.37x, so relative to the revenue scale (₩89 trillion a year) the market cap is on the low side. On profitability metrics, 2025 ROE (how much is earned in a year on equity) was 4.0% and the operating margin was 2.8%, both low. This too shows 2025 was an earnings trough. On the balance sheet, the debt ratio (borrowings relative to equity) is 168%, but net debt is negative (net cash of about ₩7.5 trillion), so actual cash headroom is ample. Debt-inclusive measures make the picture clearer. EV/EBITDA (enterprise value divided by pre-depreciation operating profit) is 3.6x, and EV/EBIT (enterprise value divided by operating profit, a debt-inclusive equivalent of the P/E) is 9.6x, far cheaper than the P/E alone suggests. This means the company holds a lot of cash and carries little debt burden.
This company stands at an earnings inflection point. Revenue rose a modest 1.7% year over year to ₩89.2 trillion in 2025. But the direction of earnings is turning. 2025 operating profit fell 27.5% from the prior year, marking a trough. Then a reversal began in 2026. Q1 2026 operating profit rose 32.9% year over year to ₩1,673.7 billion. Q1 net profit of ₩1,005.1 billion already exceeded full-year 2025 net profit (₩960.6 billion). The reasons earnings are rising sharply are clear. Vehicle components posted record quarterly results as the share of high-value products expanded. HVAC is newly capturing AI data-center cooling demand. So the 32.9x P/E calculated on last year's earnings is not the real picture. Recalculated on this year's expected earnings, the P/E falls sharply to around 13x. Look only at last year's numbers and it looks expensive, but on this year's earnings it is actually in a low range.
In May 2026 the company disclosed its Q1 quarterly report, posting record first-quarter results in both revenue and profit. The vehicle-components business in particular set a fresh record with quarterly revenue of ₩3,064.4 billion and operating profit of ₩211.6 billion. Shareholder returns also continue. In February 2026 the company signed a ₩100 billion treasury-share acquisition trust contract, and the progress of that acquisition is confirmed via electronic filing. On dividends, following an interim dividend of ₩500 for 2025, it paid a year-end dividend of ₩850 per share in April 2026. The company maintains a policy of returning at least 25% of consolidated net profit (excluding one-off items) for 2024-2026, and at least ₩1,000 per share per year. It began canceling treasury shares for the first time in its history and has stated a plan to cancel all of its holdings. Meanwhile, in May 2026 the company raised funds by issuing debt securities (corporate bonds), and the related securities registration statement and issuance results were disclosed.
LG Electronics has three axes turning at once right now. First, it is shifting its center of gravity from appliances to B2B to defend margins. Second, vehicle components are growing their profit contribution on the back of a ₩100 trillion order backlog. Third, HVAC is capturing the new market of AI data-center cooling. It is strong while this flow continues. A solid balance sheet with ₩7.5 trillion of net cash and rising shareholder returns are also firm support. Because last year's earnings were a trough, the trailing P/E looks high, but on this year's earnings it is actually on the low side. The cautions are also clear. Appliances and TVs are sensitive to the economy and consumption, so if tariff hikes or a demand slowdown come, margins could be squeezed again. If the growth pace of vehicle components and HVAC is not as fast as the market expects, the extent of the earnings recovery could shrink. In sum, in phases where the B2B businesses' profit contribution grows, the undervaluation appeal stands out; in phases where a consumption slowdown and tariff burden grow, volatility on the appliance side becomes a drag.
🔎 Valuation vs peers Undervalued
Compared against large domestic electronics and parts makers with large revenue. But because LG Electronics is a diversified maker doing appliances, TVs, vehicle components, and HVAC together, its multiples differ in character from single-business companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Electronics | 30.45x | 2.84x | 17.57% |
| Samsung Electro-Mechanics | 130.00x | 9.35x | 8.33% |
The headline trailing P/E of 32.9x is inflated because 2025 net profit was a trough. Since Q1 2026 net profit already exceeded the full-year 2025 figure, recalculated on this year's earnings the P/E falls sharply to around 13x. A P/B of 1.32x and a P/S of 0.37x are not burdensome levels given ₩89 trillion in revenue and ₩7.5 trillion in net cash. In particular, a debt-inclusive EV/EBITDA of 3.6x is on the low side for a large manufacturer. Weighing the earnings inflection and the growth of vehicle components and HVAC, we judge the stock to be in an undervalued range on this year's earnings even though it looks expensive on last year's numbers. That said, the cyclical sensitivity of appliances and TVs should be factored in as a source of earnings volatility.
Price history Close · MA20 · MA60
The latest close is ₩175,200 and the market capitalization is ₩28.5 trillion. The price sits above its 20-day moving average (₩172,680) and below its 60-day moving average (₩211,157). 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 48.3, a neutral level. The one-month change is -7.3%, the three-month change is +13.1%, and the position relative to the 52-week high is -55.4%. Relative strength versus the KOSPI is 79 (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 80% of all stocks. Over the past three months it outpaced the index by 40.2%. 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 +40.16% / 6M +42.57% / 12M +15.07%
Key metrics Computed vs whole-market median
Valuation
The P/E of 29.71x is above the whole-market median (12.97x). The P/B of 1.12x is above the whole-market median (0.84x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 2.492x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.3%, above the whole-market average (3.0%). The operating margin is 3.2%. The debt ratio is 159.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $57.8B | $61.6B | $62.7B | +1.68% ↓ slower |
| Operating profit | $2.6B | $2.4B | $1.7B | -27.53% ↓ slower |
| Net profit | $500.8M | $258.2M | $674.8M | +161.37% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $51.9B | $58.6B | $57.8B | $61.6B | $62.7B |
| Operating profit | $2.9B | $2.5B | $2.6B | $2.4B | $1.7B |
| Net profit | $724.8M | $840.5M | $500.8M | $258.2M | $674.8M |
| Revenue CAGR | 4-yr avg 4.81% | ||||
Revenue rose 1.7% year over year (2023 ₩82.3 trillion → 2024 ₩87.7 trillion → 2025 ₩89.2 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 27.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.8%. The two-year revenue CAGR is 4.1%. In the most recent quarter (Q1 2026), revenue was 4.3% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Revenue rose 1.7% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsDisclosed the Q1 2026 quarterly report. Consolidated revenue of ₩23.7272 trillion, operating profit of ₩1,673.7 billion (+32.9% year over year), and net profit of ₩1,005.1 billion, a record for a first quarter.Short-term: confirms a passing of the earnings trough and a recovery. Medium-term: grounds for an expanded B2B profit contribution centered on vehicle components and HVAC. Source
- 2026-05-06DividendReport on the acquisition status under a treasury-share acquisition trust contract. Discloses the progress of buybacks under the ₩100 billion trust contract signed in February 2026.Short-term: supports supply and demand. Medium-term: fulfills the shareholder-return policy and accumulates resources for treasury-share cancellation. Source
- 2026-05-28FilingDisclosure of the issuance results and investment prospectus for debt securities (corporate bonds). Wrapped up fundraising through a May 2026 corporate-bond issuance.Short-term: refinances maturities and secures working capital. Medium-term: diversifies funding while maintaining a net-cash structure. Source
- 2026-06-01FilingLarge-scale business-group status disclosure. As a listed core operating company of the LG Group, a regular disclosure of governance and affiliate status.Medium-term: strengthens governance transparency, linked to the group-wide value-up (dividend and treasury-share cancellation) policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | 1₩673.7 billion | 1₩673.7 billion | Confirmed | link |
| Q1 2026 net profit | 1₩5.1 billion | 1₩5.1 billion | Confirmed | link |
| 2026 dividend (annual total) | DPS ₩1,350(base valuation) | ₩850 + ₩500 = ₩1,350 | Confirmed | link |
| Estimated 2026 net profit (forward) | approx. ₩2.4 trillion(self-estimate) | — | Unverified | link |
Recent filings Source
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-28Earnings disclosure
- 2026-05-28Disclosure
- 2026-05-27Disclosure
- 2026-05-21Disclosure
- 2026-05-21Amended filing
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-06Disclosure
- 2026-05-04Amended filing
- 2026-05-04Amended filing
📖 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.