Nearly half the blue-chip shares listed on the benchmark Korea Composite Stock Price Index (KOSPI) market are undervalued, data showed Friday, amid worries that the strong dollar and weak third-quarter earnings may be contributing to South Korean shares hitting bottom.
The price-to-book value ratio (PBR), calculated by dividing a stock's share price by the book value per share, was less than 1 for 85 of the 200 big-cap companies listed on the KOSPI 200, according to financial information provider FnGuide. The book value was taken from the end of last year, while the share price was based on Wednesday's closing.