Korea Investment & Securities Co. said on the 29th that Hyundai Motor's share price remains undervalued. The firm kept its "Buy (BUY)" rating and raised its target price by 59% to 700,000 won. Hyundai Motor closed the previous transaction day at 492,500 won.
Kim Chang-ho and Jeon Yu-na, analysts at Korea Investment & Securities Co., said, "If we apply the same price-earnings ratio (PER) of 11.3 times as global competitor Toyota, Hyundai Motor's per-share operating value comes to 503,435 won," adding, "This implies that the value of Boston Dynamics (BD) is still not reflected in the stock price."
Kim added in particular, "Even if we apply the pre-rally PER of 8.1 times, Hyundai Motor's per-share operating value is 360,869 won, the intrinsic value assessed by the market is 131,631 won, and the total value is only 94 trillion won," noting, "There is ample possibility that BD's value will be further reflected in the stock price."
Korea Investment & Securities Co. presented three scenarios for Boston Dynamics' corporate value that day. As the most conservative scenario, it cited 5.66 trillion won, the corporate value recognized in the recent Series C round by Humanoid Robot company Figure AI.
In the neutral scenario, it assumed BD's 2030 revenue at 2.9 trillion to 6.5 trillion won and derived a corporate value of 142 trillion won by applying a price-to-sales ratio (PSR) of 21.8 times. If applying the PER of 28.7 times for Xpeng, a Chinese electric-vehicle maker whose share price reflects humanoid expectations, BD's corporate value could reach as high as 187 trillion won.
Based on the neutral scenario, the value of BD equity comes to 40 trillion won for Hyundai Motor (27.9% stake, about 200,000 won per share), 24 trillion won for Kia (17.2%, about 60,000 won per share), and 16 trillion won for Hyundai Mobis (11.3%, about 180,000 won per share), according to the analysis.