Coupang recognized for its growth potential
E-commerce companies’ value re-evaluation’expectation’
“Naver shopping value increased from 20 trillion won to 28 trillion won”
On the 11th, on the wall of the New York Stock Exchange (NYSE) in Manhattan, New York, a large logo celebrating Coupang’s listing and the Korean flag are hung together. / Provided by Kim Han-jun, CEO of Altos Ventures, Facebook
E-Mart, Korea’s leading retailer, as Coupang successfully debuted in the US stock market(180,000 +1.41%)And rivals Naver(380,500 +1.87%)(NAVER(380,500 +1.87%)) Is also drawing attention from the market. As Coupang’s market capitalization is approaching 100 trillion won, the ransom of domestic competitors is expected to rise further through revaluation.
As of 10:30 am on the 12th, E-Mart is trading at 180,500 won, up 4000 won (2.25%) from the previous day. Naver is also strong at 2.81%. With Coupang’s successful listing on NASDAQ, expectations are rising that other e-commerce companies in Korea will undergo re-evaluation of the corporate value.
On the 11th (local time), Coupang closed the deal at $49.25, up 40.71% ($14.25) from the offering price ($35). The market capitalization amounted to $8.85 billion (about 10.04 trillion won). Since Alibaba in 2014, Coupang has become the largest foreign company listed in the United States.
Based on the closing price on the first day of listing, Coupang’s corporate value is KRW 89.1 billion, and KRW 10 trillion is worth KRW 10 trillion. Assuming that this year’s sales will increase by 50% compared to the previous year, it was recognized for its high valuation, which is 5.4 times the share price-to-sales ratio (PSR).
Young-hoon Joo, a researcher at Eugene Investment & Securities, said, “It is higher than Amazon (3.4 times) and similar to Alibaba (5.4 times), and it is recognized for its high value in that it still has a lot of growth potential.” (38%), Alibaba (38%), and eBay (19%) significantly exceeded,” he analyzed.
The fact that Coupang has been recognized for its high corporate value is an evaluation that it is also positive for domestic competitors. This is because a re-evaluation of the enterprise value of the industry as a whole can proceed.
Researcher Joo Young-hoon said, “Typically, you can think of Naver, the number one business in Korea, and SSG.com, which is showing competitiveness in the fresh food sector,” and said, “The two companies are reviewing various strategic cooperation, including the exchange of shares with Coupang. It is known that it is worth paying attention to.
Stock prices are particularly paying attention to the beneficiaries of Naver. On that day, Meritz Securities raised its target price from KRW 470,000 to KRW 520,000, saying that Naver Shopping is expected to revaluate.
Considering that Coupang’s corporate value is 71.8 trillion won based on the public offering price band, which is 2.3 times the PSR (share price sales ratio) compared to this year’s expected GMV (total transaction value), the value of Naver Shopping has been increased from the previous (20.8 trillion won). It increased by 34.6% to trillion won.
Kim Dong-hee, a researcher at Meritz Securities, said, “If the value is reduced by 30-50% with a 70% discount compared to Coupang, the value of Naver Shopping can be increased from 46.7 trillion won to 65.3 trillion won.” As such, it is possible to increase the corporate value if the overseas market performance is confirmed.”
Eunbit Go, reporter Hankyung.com [email protected]
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