Upside case
Bull case
$33353+256458.3%
KEP would need investors to value it at roughly 7x earnings — about 7x more generous than today's 0x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Korea Electric Power Corporation (KEP) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
5
analysts
0 bullish · 0 bearish · 5 covering KEP
Strong Buy
0
Buy
0
Hold
5
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
$15947 – $33353
Model bear to bull value window
Coverage
5
Published analyst ratings
Valuation Context
0.0x
Forward P/E · Market cap $16.7B
KEP price targets
Three scenarios for where KEP stock could go
Current
~$13
Confidence
47 / 100
Updated
Jun 18, 2026
Where we are now
Current · $13
Bear
$15947
Base
$25313
Bull
$33353
Market caseClosest to today
Base case
$25313+194616.4%
At 5x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$15947+122571.3%
The bear case assumes sentiment or fundamentals disappoint enough to push KEP down roughly 122571% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Korea Electric Power Corporation
KEP · NYSEUtilitiesRegulated ElectricDecember year-end
Korea Electric Power Corporation is South Korea's state-controlled integrated electric utility that generates, transmits, and distributes electricity across the country. It earns revenue primarily through regulated electricity sales—with residential, commercial, and industrial customers comprising the bulk—and operates through segments including nuclear power generation, thermal power generation, and transmission/distribution. Its key advantage is its government-backed monopoly position as the nation's primary grid operator, which provides stable cash flows and significant economies of scale in power generation and distribution.
Market Cap
$16.7B
Revenue TTM
$72.36T
Net Income TTM
$6.22T
Net Margin
8.6%
KEP Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
73%Exceptional
12 quarters tracked
Revenue Beat Rate
45%Exceptional
vs consensus estimates
Avg EPS Surprise
+249.2%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q1 2026
Q1 2026
Q2 2026
Q2 2026
Last 4 Quarters
EPS beats: 2 of 4Q1 2026
EPS
$0.71/$0.78
Revenue
$15.9B/$16.1B
Q1 2026
EPS
$0.71/$0.78
Revenue
$16.1B/$16.1B
Q2 2026
EPS
$1.29/$1.27
Revenue
$16.3B/$16.8B
Q2 2026
EPS
$1.30/$1.23
Revenue
$16.4B/$16.6B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q1 2026 | $0.71/$0.78 | -8.7% | $15.9B/$16.1B | -1.1% |
| Q1 2026 | $0.71/$0.78 | -8.7% | $16.1B/$16.1B | +0.2% |
| Q2 2026 | $1.29/$1.27 | +1.6% | $16.3B/$16.8B | -3.2% |
| Q2 2026 | $1.30/$1.23 | +5.7% | $16.4B/$16.6B | -1.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$77.77T
+7.5% YoY
FY2
$83.79T
+7.7% YoY
EPS Outlook
FY1
$3303.27
-31.1% YoY
FY2
$2109.43
-36.1% YoY
Trailing FCF (TTM)$5.17T
FCF Margin: 7.1%
Next Earnings
August 7, 2026
Expected EPS
$0.53
Expected Revenue
$15.0B
KEP beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
KEP Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $1.77T
Product Mix
Latest annual revenue by segment or product family
Others
80.6%
+1.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Others is the largest disclosed segment at 80.6% of FY 2025 revenue, up 1.4% YoY.
KEP Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $17711 — implies +136137.8% from today's price.
Upside to Fair Value
136137.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
KEP
3.0x
vs
S&P 500
24.4x
88% discount
vs Utilities Trailing P/E
KEP
3.0x
vs
Utilities
19.0x
84% discount
vs KEP 5Y Avg P/E
Today
3.0x
vs
5Y Average
0.0x
+118722% premium
Forward PE
0.0x
S&P 500
18.8x
-100%
Utilities
17.4x
-100%
5Y Avg
—
—
Trailing PE
3.0x
S&P 500
24.4x
-88%
Utilities
19.0x
-84%
5Y Avg
0.0x
+118722%
PEG Ratio
0.09x
S&P 500
1.66x
-95%
Utilities
1.82x
-95%
5Y Avg
—
—
EV/EBITDA
5.7x
S&P 500
15.2x
-62%
Utilities
11.9x
-52%
5Y Avg
2.3x
+144%
Price/FCF
5.0x
S&P 500
20.7x
-76%
Utilities
18.6x
-73%
5Y Avg
0.0x
+104494%
Price/Sales
0.3x
S&P 500
3.1x
-91%
Utilities
2.3x
-89%
5Y Avg
0.0x
+170213%
Dividend Yield
0.85%
S&P 500
1.91%
-56%
Utilities
3.10%
-73%
5Y Avg
—
—
| Metric | KEP | S&P 500 | Utilities | 5Y Avg KEP |
|---|---|---|---|---|
| Forward PE | 0.0x | 18.8x-100% | 17.4x-100% | — |
| Trailing PE | 3.0x | 24.4x-88% | 19.0x-84% | 0.0x+118722% |
| PEG Ratio | 0.09x | 1.66x-95% | 1.82x-95% | — |
| EV/EBITDA | 5.7x | 15.2x-62% | 11.9x-52% | 2.3x+144% |
| Price/FCF | 5.0x | 20.7x-76% | 18.6x-73% | 0.0x+104494% |
| Price/Sales | 0.3x | 3.1x-91% | 2.3x-89% | 0.0x+170213% |
| Dividend Yield | 0.85% | 1.91% | 3.10% | — |
KEP trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolKEP Financial Health
Verdict
Adequate
KEP earns 13.5% operating margin on regulated earnings, 0.8% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$72.36T
Revenue Growth
TTM vs prior year
-22.6%
Operating Margin
Operating income divided by revenue
13.5%
Net Margin
Net income divided by revenue
8.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$4793.23
Operating Margin
Operating income over revenue — primary regulated earnings signal
13.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
8.4%
ROA
Return on assets, trailing twelve months
2.5%
Cash & Equivalents
Liquid assets on the balance sheet
$2.24T
Net Debt
Total debt minus cash
$130.79T
Debt Serviceability
Net debt as a multiple of annual free cash flow
25.3× FCF
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
13.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.8%
Dividend
0.8%
Buyback
0.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$233.1B
Dividend / Share
Annualized trailing dividend per share
$168.78
Payout Ratio
Share of earnings distributed as dividends
2.6%
Shares Outstanding
Declining as buybacks retire shares
1.3B
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageKEP Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Overvaluation Concerns
KEP is currently considered overvalued, with its price exceeding its GF Value™ of $8.37 by 78.7% as of April 28, 2026. This overvaluation suggests that the current market price may not be sustainable and could be subject to a significant correction.
High Risk
Financial and Operational Risks
KEP's debt levels are concerning, as they are not well-covered by operating cash flow. Additionally, the company's dividend track record is unstable, and while net profit has increased in some periods, operating income has declined and sales have remained nearly flat.
Medium
Volatility and Price Fluctuations
The stock has shown significant volatility over the past 52 weeks, trading between a low of $8.88 and a high of $23.41. Recent price movements indicate a decline, with the stock falling 3.2% on April 28, 2026, to $14.96, and a previous drop of over 10% on June 10, 2025.
Medium
Market and Industry Factors
The stock's country factor (South Korea) is a noted detractor, and while the Electric Utilities industry is generally positive, specific conditions and regulatory environments can pose risks. Geopolitical tensions, particularly in the Middle East, could lead to rising oil prices, impacting KEP's operational costs.
Lower
Analyst and AI Ratings
Some AI models provide a 'Buy' rating with a probability of outperforming the market, influenced by industry and valuation factors. However, other analyses indicate a 'Strong Sell' candidate due to negative signals and a falling trend, suggesting a risk of elevated downside.
Lower
Regulatory and Political Risks
As a state-controlled monopoly, KEP faces unique regulatory and political risks that could impact its operations and profitability. The lack of insider transactions reported in the last three months may also indicate a lack of confidence among insiders.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why KEP Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Deep Value and Undervaluation
KEP is described as a 'boring, cash-rich, government-protected electricity monopoly trading at liquidation-sale prices'. Its price-to-operating cash flow is exceptionally low, and it trades below book value, indicating deep value territory, suggesting significant appreciation potential.
Growth in Energy Demand
The increasing demand for energy, particularly driven by advancements in AI and robotics, is expected to fuel the need for new energy capacity. As a primary power provider for South Korea's industrial economy, KEP is well-positioned to benefit from this trend.
Nuclear Power and Export Potential
KEP's long-term potential is tied to South Korea's role as a 'Nuclear Architect.' The global push for carbon-free baseload power could make KEPCO's export division a significant profit driver, potentially rivaling its domestic sales.
Improved Financials and Dividend Potential
Following a period of losses, KEP has shown signs of financial recovery with a significant jump in net income and a record dividend payout. Analysts anticipate further increases in payout ratios and dividend yields, positioning KEP as a potential 'yield play'.
De-leveraging and Operational Turnaround
The company has reported a historic operational turnaround with record revenues and net income. As KEP uses its profits to reduce its substantial debt load, the market is expected to reward it with a re-rating.
Strong Momentum
Despite valuation concerns, KEP has demonstrated strong momentum, achieving a perfect score in this metric according to some analyses.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
KEP Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$13.00
52W Range Position
21%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$10.22
+27.2% from the low
52-Week High
$23.41
-44.5% from the high
1 Month
+0.78%
3 Month
-20.73%
YTD
-22.0%
1 Year
+21.5%
3Y CAGR
+21.7%
5Y CAGR
+2.2%
10Y CAGR
-6.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
KEP vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
0.0x
vs 3.4x median
-100% below peer median
Revenue Growth
+7.5%
vs +8.0% median
-6% below peer median
Net Margin
8.6%
vs 9.9% median
-13% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
KEP KEP Korea Electric Power Corporation | $16.7B | 0.0x | +7.5% | 8.6% | Hold | — |
ELP ELP Companhia Paranaense de Energia - COPEL | $7M | — | +12.4% | 8.9% | — | — |
ERJ ERJ Embraer S.A. | $12.0B | 4.4x | +11.3% | 4.3% | Buy | -38.8% |
CIG CIG Companhia Energética de Minas Gerais | $5.9B | 1.7x | +8.0% | 9.9% | Buy | +2.4% |
SBS SBS Companhia de Saneamento Básico do Estado de São Paulo - SABESP | $17.9B | 2.4x | +6.6% | 22.0% | Hold | +353.1% |
EXC EXC Exelon Corporation | $46.9B | 16.0x | +3.8% | 11.2% | Hold | +6.8% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
KEP Dividend and Capital Return
KEP returns 1.8% annually — 0.85% through dividends and 0.9% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.8%
Dividend + buyback return per year
Buyback Yield
0.9%
Dividend Yield
0.85%
Payout Ratio
2.6%
How KEP Splits Its Return
Div 0.85%
Buyback 0.9%
Dividend 0.85%Buybacks 0.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$168.78
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
-1.3%
5Y Div CAGR
-0.8%
Ex-Dividend Date
—
Payment Cadence
Annual
1 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$233.1B
Estimated Shares Retired
17.9B
Approx. Share Reduction
1396.7%
Shares Outstanding
Current diluted share count from the screening snapshot
1.3B
At 1396.7%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2025 | $0.52 | +599.4% | 100.0% | 100.0% |
| 2024 | $0.07 | — | 0.0% | 100.0% |
| 2021 | $0.49 | -10.2% | 0.0% | 100.0% |
| 2020 | $0.54 | — | 0.0% | 100.0% |
| 2017 | $0.37 | -78.6% | 0.0% | 100.0% |
FAQ
6 questionsKEP Investor Questions
Common questions answered from live analyst data and company financials.
01Is Korea Electric Power Corporation (KEP) stock a buy or sell in 2026?
Korea Electric Power Corporation (KEP) is rated Hold by Wall Street analysts as of 2026. Of 5 analysts covering the stock, 0 rate it Buy or Strong Buy, 5 rate it Hold, and 0 rate it Sell or Strong Sell. The bear case scenario is $15947 and the bull case is $33353.
02Is Korea Electric Power Corporation (KEP) stock overvalued in 2026?
KEP trades at 0.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
03What are the main risks for Korea Electric Power Corporation (KEP) stock in 2026?
The primary risks for KEP in 2026 are: (1) Overvaluation Concerns — KEP is currently considered overvalued, with its price exceeding its GF Value™ of $8. (2) Financial and Operational Risks — KEP's debt levels are concerning, as they are not well-covered by operating cash flow. (3) Volatility and Price Fluctuations — The stock has shown significant volatility over the past 52 weeks, trading between a low of $8. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04What is Korea Electric Power Corporation's revenue and earnings forecast?
Analyst consensus estimates KEP will report consensus revenue of $77.77T (+7.5% year-over-year) and EPS of $3303.27 (-31.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $83.79T in revenue.
05When does Korea Electric Power Corporation (KEP) report its next earnings?
Korea Electric Power Corporation is expected to report its next earnings on approximately 2026-08-07. Consensus expects EPS of $0.53 and revenue of $15.0B. Over recent quarters, KEP has beaten EPS estimates 73% of the time.
06How much free cash flow does Korea Electric Power Corporation generate?
Korea Electric Power Corporation (KEP) generated $5.17T in free cash flow over the trailing twelve months — a free cash flow margin of 7.1%. KEP returns capital to shareholders through dividends (0.8% yield) and share repurchases ($233.1B TTM).