SK Hynix Overtakes Samsung Electronics in Forward P/E for First Time as Stock Rally Accelerates

SK Hynix Overtakes Samsung Electronics in Forward P/E for First Time as Stock Rally Accelerates: Ellie Kim 인턴기자 / approved : 2026-05-14 06:47:15

Photo courtesy of Yonhap News

[Alpha Biz= Ellie Kim] SK Hynix has overtaken Samsung Electronics in forward price-to-earnings (P/E) ratio for the first time, as its share price surged sharply amid strong momentum in the memory chip market.

According to the Korea Exchange, SK Hynix rose 7.68% on May 13 to close at KRW 1,976,000, hitting an intraday record high of KRW 1,990,000. Samsung Electronics, meanwhile, gained 1.79% to finish at KRW 284,000.

Over the past month, SK Hynix has significantly outperformed Samsung Electronics, posting a return of 78.68% compared to Samsung’s 35.44%.

As a result, the gap in 2026 forward P/E ratios between the two companies has reversed. Data from FnGuide shows that, based on closing prices, SK Hynix now trades at a forward P/E of 6.79x, slightly higher than Samsung Electronics’ 6.77x—a 0.02-point difference marking the first such reversal.

Just three months ago, Samsung Electronics traded at 8.08x versus SK Hynix’s 5.28x, a gap of 2.80 points. One month ago, the gap had narrowed to 5.70x versus 4.66x.

The forward P/E ratio measures a company’s current share price relative to its expected earnings per share (EPS), serving as a key indicator of valuation. A higher ratio typically suggests a richer valuation, while a lower ratio indicates relative undervaluation. The reversal suggests that the valuation gap between the two semiconductor giants has effectively closed.

Looking at the 12-month forward P/E, Samsung Electronics stood at 5.8x compared to SK Hynix’s 5.1x as of May 11, though the recent divergence in stock performance is believed to have further narrowed this gap.

Market capitalizations also reflect the shifting dynamics. As of the latest close, Samsung Electronics remains larger at approximately KRW 1,660 trillion, compared to SK Hynix’s KRW 1,408 trillion, leaving a gap of around KRW 252 trillion.

For Samsung Electronics, the development is seen as disappointing. While both companies have benefited from improved earnings outlooks amid the memory chip upcycle, Samsung’s earnings revisions have been stronger. FnGuide data shows Samsung’s 2026 EPS consensus has surged 102.15% over the past three months, compared to a 78.76% increase for SK Hynix.

However, SK Hynix’s stock price has risen more rapidly, offsetting Samsung’s stronger earnings revisions.

Analysts point to structural shifts in market perception. SK Hynix’s early leadership in high-bandwidth memory (HBM) and its outperformance in operating profit last year have erased its historical “undervaluation discount” relative to Samsung.

Meanwhile, Samsung Electronics faces additional pressure from labor-related risks. Unlike SK Hynix, which concluded wage negotiations with its labor union last year, Samsung is currently exposed to potential strike risks.

According to JPMorgan Chase, wage increases at Samsung could reduce operating profit by an estimated 7% to 12%. Market participants suggest that Samsung must resolve its labor issues before its share price can move in tandem with SK Hynix.