South Korean Entertainment Stocks Rated Significantly Undervalued at 12-22x P/E by Hana Securities

According to Hana Securities analyst Lee Ki-hoon, major South Korean entertainment companies are trading at significantly depressed valuations. HYBE is valued at 22x forward P/E, while SM Entertainment, JYP Entertainment, and YG Entertainment trade at 12–15x multiples, representing substantial undervaluation relative to expected Q2 2026 earnings.

Hana Securities expects HYBE to report Q2 operating profit of 144.5 billion Korean won, up 119% year-over-year, driven by BTS touring revenue. SM is projected to post 53.8 billion won in Q2 operating profit, a 13% increase. The analyst upgraded entertainment sector stocks to overweight, citing strong expected earnings momentum in the second half despite near-term sector underperformance due to AI-focused market sentiment.