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LG Energy Solution Ltd (373220) Fair Value & Analysis

Industrials · KR · Market cap 78.2T KRW (≈ $54.7B) · ISIN KR7373220003

What is LG Energy Solution Ltd really worth?

LE LG Energy Solution Ltd 373220 · KO
Price358,500 KRW
Fair Value201,455 KRW
Upside−43.8%
Quality33/100

Below-average quality, and trading another 78% above our fair value of 201,455 KRW.

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Risks

!Weak Growth (revenue 5y +74.5 %/yr)
!Loss-making · -6.8% net margin
!Moderate debt · negative free cash flow
!Trails peers (2/10)
!Narrow moat 16/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range 131,491 KRW – 201,455 KRW

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 22 days ago

Share price +6.9% 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 (201,455 KRW). The favourable scenario is already priced in.
  • Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

624,000 KRW 268,000 KRW Fair Value 201,455 KRW Jan 2022 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

55‑month range 268,000 KRW – 624,000 KRW · fair‑value band 131,491 KRW – 201,455 KRW · the 358,500 KRW price screens above the 201,455 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

LG Energy Solution Ltd (373220) currently trades at 358,500 KRW, while our model-based Fair Value estimate is 201,455 KRW, implying the stock looks roughly 78.0% overvalued today. The Quality Score stands at 33/100 (below-average quality), in the Industrials sector. Bull case: the Asset-Based group reads highest at a median of 57,882 KRW per share, and 0 of the 6 models we run sit above the 358,500 KRW price. Bear case: the Multiples group reads lowest at 47,650 KRW, and 6 of the 6 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, LG Energy Solution Ltd generated revenue of 23.5T KRW at a net margin of −6.8%. Revenue declined 2.5% year over year. It earns a return on equity of −3.6%. Net debt stands at 18.3T KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 131,491 KRW (bear case) to 201,455 KRW (bull case); at 358,500 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 32% below its 52-week high and 28% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −44%, 373220 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (6,699 KRW to 229,708 KRW). Read the values as a conservative anchor, not as a price target.
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
EPV 6,699 KRW 14,278 KRW 68
EV/EBITDA 159,745 KRW 229,708 KRW 299,672 KRW 67
ROIC Compounder 6,699 KRW 14,278 KRW 65
All 6 models by family
Earnings-Based
EPV 6,699 KRW 14,278 KRW 68
Multiples
EV/EBIT 23,201 KRW 47,650 KRW 72,098 KRW 62
EV/EBITDA 159,745 KRW 229,708 KRW 299,672 KRW 67
EV/Revenue 2,204 KRW 24,639 KRW 47,074 KRW 47
Asset-Based
NCAV (Graham) 43,196 KRW 57,882 KRW 86,391 KRW 54
Economic Profit
ROIC Compounder 6,699 KRW 14,278 KRW 65

Widest divergence: Asset-Based (57,882 KRW) versus Earnings-Based (6,699 KRW). Highest evidence: EPV (68).

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Key figures & financial health

P/S ratio 4.12 TTM
Net margin −4.5% FY2025
Return on equity −3.6% TTM
Return on assets (EBIT) 3.7% avg 5y
Operating margin −3.2% TTM
Revenue (TTM) 23.5T KRW TTM
More key figures
Growth
Revenue growth (YoY) −2.5% 3y avg −2.6%
EPS growth (YoY) +85.6%
Balance sheet & cash flow
Free cash flow −6.6T KRW FY2025
Net debt 18.3T KRW FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 34 · Market factors (momentum, volatility) 31

Profitability 9
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 23
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 82
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

LG Energy Solution, Ltd. provides energy solutions worldwide. The company offers automotive batteries, which include pouch-type battery cells, modules/packs, and battery management system products for use in electric vehicle batteries; mobility and IT batteries for various applications in IT devices, such as smartphones and laptops, as well as light …

Full company description

LG Energy Solution, Ltd. provides energy solutions worldwide. The company offers automotive batteries, which include pouch-type battery cells, modules/packs, and battery management system products for use in electric vehicle batteries; mobility and IT batteries for various applications in IT devices, such as smartphones and laptops, as well as light electric vehicles, electric bicycles, power tools, and wireless earphones; and energy storage systems that are used in power grids, UPS, and commercial and residential applications. It operates in South Korea, China, and the United States. LG Energy Solution, Ltd. was founded in 2020 and is headquartered in Seoul, South Korea. LG Energy Solution, Ltd. is a subsidiary of LG Chem, Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LG Energy Solution Ltd reported revenue of 23.7T KRW in FY2025 versus 17.9T KRW in FY2021, a compound +7.3%/yr. Reported net income was −1.1T KRW in FY2025.

Growth Quality 32/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
23.7T KRW
Latest YoY
−7.6%
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.
−2.6%
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.
+74.5%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +7.3%/yr
FY21 17.9T KRW
FY22 25.6T KRW
FY23 33.7T KRW
FY24 25.6T KRW
FY25 23.7T KRW
Net income
FY21 793B KRW
FY22 767B KRW
FY23 1.2T KRW
FY24 −1.0T KRW
FY25 −1.1T KRW

373220 screens 78% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "LG Energy Solution Ltd Fair Value". https://www.fairvalue-calculator.com/stock/373220

Peer Group

Electrical Equipment & Parts · 542 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 33 · Bottom 25%
Fair Value upside −44% · Above median
Return on assets 1% · Below median
Net margin (TTM) −7% · Bottom 25%
Operating margin (TTM) −3% · Bottom 25%
Revenue growth −3% · Bottom 25%
Debt / equity 0.77× · Higher than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

EV/EBITDA 2.7× · Cheaper than 75% of peers
PEG 3.36× · Pricier 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 0
FUTURE0 · sector 56
PAST0 · sector 26
HEALTH62 · sector 97
DIVIDEND0 · sector 23

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
ABB Ltd ABBN CHF 80.10 CHF 28.70 −64%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%
nVent Electric plc NVT $151.98 $40.68 −73%

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Frequently asked questions

Is LG Energy Solution Ltd (373220) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 201,455 KRW versus a price of 358,500 KRW, about −44% upside (overvalued).
What is the fair value of 373220?
Our model-based fair value for LG Energy Solution Ltd is 201,455 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 358,500 KRW.
What is the quality score of 373220?
LG Energy Solution Ltd has a Quality Score of 33/100. 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 revenue of LG Energy Solution Ltd (373220)?
LG Energy Solution Ltd reported trailing-twelve-month revenue of about 23.5T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 373220?
The net profit margin of LG Energy Solution Ltd is about −6.8%, meaning it is currently running at a net loss. Based on the latest reported figures.
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