SK Hynix (000660KS): The Memory Cycle Playbook – Financial Model & Valuation

This is the downloadable financial model for SK Hynix (000660KS), covering core assumptions, financial projections, valuation, and scenario pricing. The table below is a snapshot of the model's output; the full editable version (with live formulas, so you can tweak assumptions and run your own sensitivity analysis) is available here:

⬇ Download 000660KS Financial Model (.xlsx)

All multiples, growth rates, WACC, target prices in the tables are model-based/analytical estimates and are not disclosed by the company. The model is purely an analytical framework and cross-check; it does not constitute investment advice.

01Assumptions

SK Hynix (000660.KS) — Model Assumptions (Blue = adjustable inputs; yellow highlight = key assumptions) Data as of Q1 2026 (2026-03-31) / Price as of 2026-06-26; currency KRW ₩, amounts in KRW trillions, EPS/price in ₩/share Valuation Basis

Scenario Assumptions (EPS × Cyclical P/E)

Note: Memory is a highly cyclical stock, so peak P/E tends to be low; EPS/P/E/probabilities are all modeled/analytical.

02Cycle Model

Cycle Model (analytical; shows the peak-to-trough arc of profitability) Blue = input; black = formula. FY25A is estimated. Amounts in ₩ tn. Illustrates the memory cycle: after a peak, margins normalize.

Hint: FY28E margins falling back to ~40% represent cycle normalization — which is exactly why a "low peak P/E" doesn't mean the stock is cheap.

03Scenario Pricing

Scenario Pricing (EPS × Cyclical P/E method) Target Price = Scenario EPS × Cyclical P/E; Weighted = Σ (Target Price × Probability).

Hint: Cycle stocks should be valued using mid-cycle earnings; the P/E used here is already a conservative cyclical P/E.