Samsung Electronics Co Ltd value analysis (SMSN:LSE) 2018
Samsung Electronics Co Ltd value analysis (SMSN:LSE)
A new value analysis of Samsung Electronics Co Ltd, has been added to our research pages here. Samsung is a global designed and manufacturer of consumer electronics and a designer and manufacturer of some of the components of the consumer electronics. In particular it is worth noting the silicon foundry business, which design and manufactures mobile technology silicone chips.
The investment security we are recommending is the London-listed Global Depositary Receipt of GDR. The GDR has a ticker symbol SMSN and should be available to buy and sell through most stockbrokers. Each GDR is worth 25 shares so all share-related data has to be adjusted to the GDR price by multiplying by 25.
The GDR is quoted in US dollars and most of the data in the Samsung Annual Report is given in Korean Won and US dollars so ratios for dividend yield and price to book and price to earnings can be worked out using SMSN in US dollars and the US dollar data in the Annual report.
Any analysis of SMSN is further complicated because Samsung completed a 50 for 1 stock split at the end of April 2018; you can see the news release here. The stock split means that all the per share data prior to 2018 has to be adjusted in order to make fair comparisons between 2018 and previous years.
The data in the value analysis report takes account of the stock split and the 25 shares, which make up the GDR.
The really interesting part about he value analysis for Samsung is the very low price to earnings ratio. Earnings at Samsung have risen a lot over the last three years. The rise in earnings explains the low price to earnings ratio. Value investors must consider whether the current earnings level is sustainable and whether the low price in comparison with those earnings gives a good margin of safety when considering an investment in the common stock.
To find out if a value investor should consider an investment in Samsung electronics Co Ltd common stock using the GDR, with ticker symbol SMSN click here to download the new analysis.
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