Samsung Electro-Mechanics' undervaluation implies high earnings growth expectations. Researcher Schulz Duggan, based on the consensus forecasts of 17 analysts from Yahoo Finance, calculated that with the latest share price of 874,000 won as of November 12th, the company's average earnings per share (EPS) in 2027 is projected to reach 49,400 won, an increase of approximately 118% from 22,600 won in 2026, corresponding to a forward price-to-earnings ratio (P/E) of approximately 18.5 times.
However, if the 2027 EPS is 20% lower than the consensus forecast, the forward P/E will rise to 23.1 times; based on the lowest analyst earnings forecast, it will reach 27.3 times. In other words, the market's current valuation of Samsung Electro-Mechanics already includes the expectation of significant profit growth.
This growth expectation mainly stems from the demand for high-end MLCCs (multilayer ceramic capacitors) and advanced packaging substrates driven by AI servers. Samsung Electro-Mechanics' operating profit increased by 165% year-on-year in the third quarter, and the company also stated that demand for AI data center-related components is expected to remain strong.
