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Meritz Financi (138040) Fair Value & Analysis

Financial Services · KR · Market cap 19.3T KRW (≈ $13.5B) · ISIN KR7138040001

What is Meritz Financi really worth?

MF Meritz Financi 138040 · KO
Price135,500 KRW
Fair Value52,717 KRW
Upside−61.1%
Quality35/100

Below-average quality, and trading another 157% above our fair value of 52,717 KRW.

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Strengths

Solidly profitable · 11.9% net margin

Risks

!Weak Growth (revenue 5y +4.0 %/yr)
!High debt · negative free cash flow
!Mixed vs. peers (5/9)
!Moderate moat 62/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range 39,538 KRW – 65,896 KRW

Fair value as of: Aug 31, 2026

From 2 valuation models · updated 5 days ago

Share price +12.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (65,896 KRW). The favourable scenario is already priced in.
  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

146,200 KRW 14,891 KRW Fair Value 52,717 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range 14,891 KRW – 146,200 KRW · fair‑value band 39,538 KRW – 65,896 KRW · the 135,500 KRW price screens above the 52,717 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Meritz Financi (138040) currently trades at 135,500 KRW, while our model-based Fair Value estimate is 52,717 KRW, implying the stock looks roughly 157.0% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Financial Services sector. How firm this estimate is: it rests on 17 models at a data quality of 94/100, which puts the evidence level at medium.

Revenue declined 0.7% year over year. It earns a return on equity of 21.2%. Net debt stands at 20.6T KRW. Fundamentals as of Aug 31, 2026

Our scenario range runs from 39,538 KRW (bear case) to 65,896 KRW (bull case); at 135,500 KRW, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 36% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −37% fair-value upside, at −61%, 138040 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
P/B Multiple 39,938 KRW 53,250 KRW 66,563 KRW 55
NCAV (Graham) 31,324 KRW 41,974 KRW 62,647 KRW 54
All 2 models by family
Multiples
P/B Multiple 39,938 KRW 53,250 KRW 66,563 KRW 55
Asset-Based
NCAV (Graham) 31,324 KRW 41,974 KRW 62,647 KRW 54

Widest divergence: Multiples (53,250 KRW) versus Asset-Based (41,974 KRW). Highest evidence: P/B Multiple (55).

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Key figures & financial health

P/S ratio 1.00 TTM
Dividend yield 1.9%
Net margin 53.7% FY2025
Return on equity 21.2% TTM
Return on assets (EBIT) 4.2% avg 5y
Operating margin 33.4% TTM
More key figures
Growth
Revenue growth (YoY) −0.7% 3y avg −3.0%
EPS growth (YoY) −3.7%
Balance sheet & cash flow
Free cash flow −6.5T KRW FY2025
Net debt 20.6T KRW FY2025

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 33 · Market factors (momentum, volatility) 57

Profitability 45
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 65
Distance to the 52-week high (market factor)
Net Issuance 50
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Meritz Financial Group Inc., together with its subsidiaries, provides various financial services in South Korea and internationally. The company operates through Insurance, Securities, Capital, and Others segments.

Full company description

Meritz Financial Group Inc., together with its subsidiaries, provides various financial services in South Korea and internationally. The company operates through Insurance, Securities, Capital, and Others segments. It offers various insurance contracts, including general non-life insurance comprising fire, marine, personal accident, engineering, liability, comprehensive, authority, guarantee, and other special types of insurance; and auto insurance products, which include personal, business, commercial, motorcycle, and others; and long-term non-life insurance products, such as long-term damage, property, personal accident, driver, savings, disease, nursing care, pension savings damage, etc. The company engages in undertaking risk through reinsurance cessions and joint underwriting. It also provides products, such as natural disaster insurance. In addition, the company engages in merchant banking and security; private equity fund; management trust; financial services; real estate leasing; and SPC for asset securitization businesses. Meritz Financial Group Inc. was founded in 2007 and is headquartered in Seoul, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Meritz Financi reported revenue of 4.3T KRW in FY2025 versus 4.2T KRW in FY2021, a compound +0.2%/yr. Reported net income was 2.3T KRW in FY2025, compounding +30.7%/yr from FY2021.

Growth Quality 36/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.3T KRW
Latest YoY
+1.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Avg. revenue growth/yr (14Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.3%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+31.6% (29.7 + 1.9)
Revenue +0.2%/yr
FY21 4.2T KRW
FY22 4.7T KRW
FY23 4.1T KRW
FY24 4.2T KRW
FY25 4.3T KRW
Net income +30.7%/yr
FY21 789B KRW
FY22 1.1T KRW
FY23 2.0T KRW
FY24 2.3T KRW
FY25 2.3T KRW

138040 screens 157% overvalued. Compare with Morgan Stanley, a financial holding company, →

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Cite: Fair Value Calculator (2026). "Meritz Financi Fair Value". https://www.fairvalue-calculator.com/stock/138040

Peer Group

Capital Markets · 453 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 38 · Bottom 25%
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 21% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 12% · Below median
Operating margin (TTM) 51% · Top 25%
Revenue growth 51% · Above median
Dividend yield (TTM) 1.9% · Above median
Debt / equity 3.21× · Higher than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 10
FUTURE100 · sector 91
PAST85 · sector 30
HEALTH0 · sector 94
DIVIDEND38 · sector 38

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Morgan Stanley, a financial holding company, MS $214.77 $138.97 −35%
The Goldman Sachs Group GS $1,034 $756.89 −27%
The Charles Schwab Corporation SCHW $110.16 $66.17 −40%
Robinhood Markets, Inc HOOD $104.26 $30.94 −70%
Macquarie Group MQG A$251.87 A$75.58 −70%
CITIC Securities Company 600030 ¥27.93 ¥17.68 −37%
Guotai Haitong Securities Co 601211 ¥17.87 ¥18.62 +4%
East Money Information Co 300059 ¥19.42 ¥4.77 −75%
CSC Financial Co 601066 ¥25.78 ¥14.17 −45%
Huatai Securities Co 601688 ¥19.56 ¥19.26 −2%

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Frequently asked questions

Is Meritz Financi (138040) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of 52,717 KRW versus a price of 135,500 KRW, about −61% upside (overvalued).
What is the fair value of 138040?
Our model-based fair value for Meritz Financi is 52,717 KRW (as of Aug 31, 2026), built from audited fundamentals. The current price: 135,500 KRW.
What is the quality score of 138040?
Meritz Financi has a Quality Score of 35/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of 138040?
The net profit margin of Meritz Financi is about 13.0%, meaning it keeps roughly 13.0% of revenue as net income. Based on the latest reported figures.
Does Meritz Financi pay a dividend?
Meritz Financi currently shows a dividend yield of about 1.90% relative to its recent price (as of Aug 31, 2026).
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