Value stock or value trap? The Korean discount U-S-NEWS.COM [Video]

South Korea’s stock market, despite being home to Asia’s fourth largest economy, is often considered undervalued by analysts, leading to what is sometimes referred to as the “Korea discount.”

Data from the Korea Exchange showed that the Kospi benchmark index as a whole has a price-to-book ratio of 0.92, and its price-to-earnings ratio stood at 18.93. A price-to-book ratio measures whether a company’s share price is undervalued, with a number below 1 indicating the stock may be below fair value.

The “Korea discount” refers to a tendency for South Korean securities to be assigned lower valuations or bear an …