KB Financial Group Inc.

Financial ServicesBanks - RegionalNYSE

$104.83

Market Cap: $37.18B

KB Financial Group Inc. (KB) Valuation Summary

Updated Apr 22, 2026 22:17

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$748.47 – $6,062.65	$1,318.07	+1134.6%
Growth Exit 10Y	$1,157.35 – $9,337.91	$2,039.35	+1810.2%
EBITDA Exit 5Y	$495.45 – $1,004.66	$728.81	+582.7%
EBITDA Exit 10Y	$837.81 – $1,749.37	$1,226.84	+1049.2%
▸ Trading Multiples
P/E	$137.19 – $149.03	$143.01	+34.0%
EV/EBITDA	$110.01 – $210.69	$188.49	+76.6%
EV/Revenue	$210.06 – $307.40	$268.88	+151.9%
▸ PEG
PEG Fair Value	$98.78 – $98.78	$98.78	-7.5%
▸ Earnings Power Value
Earnings Power Value	$277.92 – $421.26	$334.89	+213.7%
▸ Dividend Discount
Dividend Discount	$75.12 – $269.01	$126.00	+18.0%

Valuation History

DCF Analysis

Fair Value

$1,318.07

Market Price

$104.83

Upside / Downside

+1157.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project KB Financial Group Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 21.1% to 6.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 1, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $1318.07 per share, suggesting KB is undervalued by 1157.3% at the current price of $104.83.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	79	93	106	117	124	129
(−) Net Interest	15,602	18,325	20,861	22,995	24,515	25,374
(+) D&A	333	437	568	701	865	896
EBITDA	16,014	18,855	21,535	23,812	25,505	26,398

(−) Tax	22	26	29	32	34	36
(−) CapEx	868	1,019	1,160	1,279	1,364	1,411
(−) ΔWC	11,621	2,028	1,889	1,589	1,133	1,172
Free Cash Flow (FCFF)	3,503	15,782	18,456	20,912	22,974	23,778

Terminal Value						623,021
WACC / Discount Rate	7.3%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,382	14,195	15,470	16,333	16,720	437,691

Enterprise Value	503,791
Projection Period	66,100	13.1%
Terminal Value	437,691	86.9%

(−) Current Net Debt	0

Equity Value	503,791
(/) Outstanding Shares	382

Fair Price	$1318.07

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
5.3%	$1888	$2255	$2826	$3830	$6063
6.3%	$1378	$1559	$1804	$2155	$2699
7.3%	$1080	$1185	$1318	$1491	$1725
8.3%	$886	$953	$1035	$1135	$1262
9.3%	$748	$795	$849	$913	$991

Current price: $104.83. Green = undervalued, Red = overvalued.

Fair Value

$2,039.35

Market Price

$104.83

Upside / Downside

+1845.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project KB Financial Group Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 22.7% to 5.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 1, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $2039.35 per share, suggesting KB is undervalued by 1845.4% at the current price of $104.83.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	80	97	115	134	154	174	193	210	225	236	244
(−) Net Interest	15,814	19,093	22,676	26,485	30,412	34,322	38,057	41,449	44,326	46,530	48,158
(+) D&A	333	439	579	732	935	1,274	1,479	1,690	1,899	2,098	2,171
EBITDA	16,227	19,629	23,371	27,352	31,501	35,769	39,729	43,350	46,450	48,863	50,574

(−) Tax	22	27	32	37	43	48	53	58	62	65	68
(−) CapEx	880	1,062	1,261	1,473	1,692	1,909	2,117	2,306	2,466	2,588	2,679
(−) ΔWC	11,779	2,443	2,669	2,837	2,925	2,912	2,783	2,527	2,143	1,641	1,699
Free Cash Flow (FCFF)	3,546	16,098	19,408	23,004	26,842	30,900	34,777	38,459	41,779	44,569	46,129

Terminal Value											1,208,624
WACC / Discount Rate	7.3%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,423	14,480	16,267	17,967	19,535	20,955	21,976	22,646	22,924	22,787	596,515

Enterprise Value	779,476
Projection Period	182,961	23.5%
Terminal Value	596,515	76.5%

(−) Current Net Debt	0

Equity Value	779,476
(/) Outstanding Shares	382

Fair Price	$2039.35

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
5.3%	$3087	$3637	$4492	$5995	$9338
6.3%	$2219	$2478	$2828	$3329	$4106
7.3%	$1715	$1859	$2039	$2275	$2593
8.3%	$1387	$1475	$1581	$1712	$1876
9.3%	$1157	$1215	$1282	$1362	$1459

Current price: $104.83. Green = undervalued, Red = overvalued.

Fair Value

$728.89

Market Price

$104.83

Upside / Downside

+595.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project KB Financial Group Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 21.1% to 6.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 1, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $728.81 per share, suggesting KB is undervalued by 595.2% at the current price of $104.83.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

11.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	79	93	106	117	124	127
(−) Net Interest	15,602	18,325	20,861	22,995	24,515	25,128
(+) D&A	333	437	568	701	865	887
EBITDA	16,014	18,855	21,535	23,812	25,505	26,143

(−) Tax	22	26	29	32	34	—
(−) CapEx	868	1,019	1,160	1,279	1,364	—
(−) ΔWC	11,621	2,028	1,889	1,589	1,133	—
Free Cash Flow (FCF)	3,503	15,782	18,456	20,912	22,974	—

Peers' EBITDA Multiple						11.6x
Terminal Value						302,471
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,382	14,195	15,470	16,333	16,720	212,495

Enterprise Value	278,595
Projection Period	66,100	23.7%
Terminal Value	212,495	76.3%

(−) Current Net Debt	0
Equity Value	278,595
(÷) Outstanding Shares	382M
Fair Price	$729	+595.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
5.3%	$582	$688	$793	$899	$1005
6.3%	$559	$660	$760	$861	$962
7.3%	$537	$633	$729	$825	$921
8.3%	$515	$607	$699	$791	$882
9.3%	$495	$583	$671	$758	$846

Current price: $104.83. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$1,226.96

Market Price

$104.83

Upside / Downside

+1070.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project KB Financial Group Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 22.7% to 5.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 68, DPO 1, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $1226.84 per share, suggesting KB is undervalued by 1070.3% at the current price of $104.83.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

11.57x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	80	97	115	134	154	174	193	210	225	236	242
(−) Net Interest	15,814	19,093	22,676	26,485	30,412	34,322	38,057	41,449	44,326	46,530	47,693
(+) D&A	333	439	579	732	935	1,274	1,479	1,690	1,899	2,098	2,150
EBITDA	16,227	19,629	23,371	27,352	31,501	35,769	39,729	43,350	46,450	48,863	50,085

(−) Tax	22	27	32	37	43	48	53	58	62	65	—
(−) CapEx	880	1,062	1,261	1,473	1,692	1,909	2,117	2,306	2,466	2,588	—
(−) ΔWC	11,779	2,443	2,669	2,837	2,925	2,912	2,783	2,527	2,143	1,641	—
Free Cash Flow (FCF)	3,546	16,098	19,408	23,004	26,842	30,900	34,777	38,459	41,779	44,569	—

Peers' EBITDA Multiple											11.6x
Terminal Value											579,484
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,423	14,480	16,267	17,967	19,535	20,955	21,976	22,646	22,924	22,787	286,004

Enterprise Value	468,965
Projection Period	182,961	39.0%
Terminal Value	286,004	61.0%

(−) Current Net Debt	0
Equity Value	468,965
(÷) Outstanding Shares	382M
Fair Price	$1227	+1070.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
5.3%	$1125	$1281	$1437	$1593	$1749
6.3%	$1043	$1185	$1327	$1469	$1611
7.3%	$968	$1097	$1227	$1356	$1486
8.3%	$900	$1018	$1136	$1254	$1372
9.3%	$838	$945	$1053	$1160	$1268

Current price: $104.83. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$143.01

Market Price

$104.83

Upside / Downside

+36.4%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), KB Financial Group Inc. (KB) has a fair value of $143.01 based on 5 comparable companies in the Banks - Regional industry.

P/E Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
KB Financial Group Inc.KB	40,068	9.4x	—
U.S. BancorpUSB	88,013	12.3x	14.7x
Truist Financial CorporationTFC	63,229	13.3x	15.3x
Fifth Third BancorpFITB	35,729	14.3x	16.0x
M&T Bank CorporationMTB	32,418	12.8x	15.0x
NatWest Group plcNWG	31,826	4.7x	—
Industry Median		12.8x	15.2x
(*) Profit after tax		4,271
Equity Value		54,660
(/) Outstanding shares		382
Fair Price		$143

Fair Value

$188.49

Market Price

$104.83

Upside / Downside

+79.8%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), KB Financial Group Inc. (KB) has a fair value of $188.49 based on 5 comparable companies in the Banks - Regional industry.

EV/EBITDA Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
KB Financial Group Inc.KB	40,068	6.4x	—
U.S. BancorpUSB	88,013	11.6x	18.1x
Truist Financial CorporationTFC	63,229	13.7x	31.3x
Fifth Third BancorpFITB	35,729	12.9x	19.4x
M&T Bank CorporationMTB	32,418	6.8x	9.0x
NatWest Group plcNWG	31,826	1.3x	—
Industry Median		11.6x	18.7x
(*) EBITDA		6,228
= Enterprise Value		72,045
(-) Net Debt		0
Equity Value		72,045
(/) Outstanding shares		382
Fair Price		$188

Fair Value

$268.88

Market Price

$104.83

Upside / Downside

+156.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), KB Financial Group Inc. (KB) has a fair value of $268.88 based on 5 comparable companies in the Banks - Regional industry.

EV/Revenue Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
KB Financial Group Inc.KB	40,068	1.1x	—
U.S. BancorpUSB	88,013	2.8x	4.3x
Truist Financial CorporationTFC	63,229	3.2x	7.2x
Fifth Third BancorpFITB	35,729	3.6x	5.5x
M&T Bank CorporationMTB	32,418	2.2x	2.9x
NatWest Group plcNWG	31,826	0.4x	—
Industry Median		2.8x	4.9x
(*) Revenue		37,001
= Enterprise Value		102,773
(-) Net Debt		0
Equity Value		102,773
(/) Outstanding shares		382
Fair Price		$269

PEG Fair Value

Fair Value

$98.78

Market Price

$104.83

Upside / Downside

-5.8%

Verdict

Overvalued

Using the PEG framework with historical EPS growth of 8.9%, the company has a fair value of $98.78 based on TTM EPS (FY2025) of $11.16. The current PEG ratio is 1.08.

PEG Ratio

1.08Fair Value

01.02.03.0+

PEG = P/E ÷ Growth = 9.6 ÷ 8.9% = 1.08

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateHistorical	8.9%
Adjusted Growth (clamped 8–25%)	8.9%
Fair P/E	8.9x
TTM EPS (FY2025)	$11.16
Fair Value	$98.78

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$3.2B	$7.95	—
FY2022	$3.0B	$7.37	-7.3%
FY2023	$3.4B	$8.19	+11.1%
FY2024	$3.7B	$9.29	+13.4%
FY2025	$4.3B	$11.16	+20.1%

4Y Historical EPS CAGR: 8.9%

Earnings Power Value

Fair Value

$334.89

Market Price

$104.83

Upside / Downside

+219.5%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 7.3% and normalized earnings of $9.4B, the company has a fair value of $334.89 per share. The EPV range is $277.92 – $421.26 based on WACC sensitivity (5.8% – 8.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	9,365	9,365	9,365
(/) WACC	8.8%	7.3%	5.8%
Enterprise Value	106,225	128,003	161,012
(-) Net debt	0	0	0
Equity Value	106,225	128,003	161,012
(/) Outstanding shares	382	382	382
Fair Price	$277.92	$334.89	$421.26

Dividend Discount Model

Fair Value

$126.00

Market Price

$104.83

Upside / Downside

+20.2%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.3% and projected dividend growth of 15.0%, the fair value is $126.00 per share. The DDM range is $75.12 – $269.01 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$2.83

Dividend Yield

0.00%

Payout Ratio

0.0%

Dividend Coverage

N/A

DPS CAGR (3Y)16.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	—	0.0%	-100.0%
2024	$2.83	29.3%	+32.4%
2023	$2.14	25.1%	-18.7%
2022	$2.63	35.0%	+46.3%
2021	$1.80	22.3%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.26	15.0%	0.9318	$3.03
2027	$3.74	15.0%	0.8683	$3.25
2028	$4.31	15.0%	0.8091	$3.48
2029	$4.95	15.0%	0.7539	$3.73
2030	$5.70	15.0%	0.7025	$4.00
Terminal Value	$5.89 DPS	3.5%		$108.50

PV of Projected Dividends$17.50

PV of Terminal Value$108.50

Fair Value per Share$126.00

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
5.3%	$247	$258	$269	$269	$269
6.3%	$158	$165	$172	$172	$172
7.3%	$116	$121	$126	$126	$126
8.3%	$91	$95	$99	$99	$99
9.3%	$75	$78	$81	$81	$81

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.