Institution: Samsung Electronics and SK Hynix valuations have fallen to levels last seen during the financial crisis

KB Securities said Samsung Electronics and SK Hynix are currently as undervalued as they were during the global financial crisis, with both companies' earnings rising sharply but their share prices failing to keep pace. Kim Dong-won, head of KB Securities' research division, said in an October 26 report that the two companies' price-to-earnings ratios have fallen to about 3 times. "Samsung Electronics and SK Hynix have entered an undervalued phase comparable to past financial crises, with an extreme divergence between earnings and share prices. The market should focus on future earnings growth and the possibility of valuation recovery, rather than dwelling on the pessimistic expectations already reflected in share prices," Kim said.