Stock fact sheet · data as of
Korea Electric Power Corporation (KEP): fair value, margin of safety and Wheel Score
Ticker symbol KEP · Utilities · Regulated Electric · South Korea · ADR · Value Income
KEP is an American depositary share (ADR): the US listing of Korea Electric Power Corporation, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is KEP undervalued?
At 11.30 (close of 5 Nov 2026), KEP trades 89% below the GLS average fair value of 106.63. That average comes from 8 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Korea Electric Power Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: DDM gives 8.58 while GLS Growth gives 259.58. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, KEP is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 94, growth score 59, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for KEP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 51.66 | +357% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 242.53 | +2046% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 106.00 | +838% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 259.58 | +2197% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 101.83 | +801% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 35.74 | +216% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 8.58 | -24% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 47.11 | +317% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -101.56 | -999% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: KEP passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.0 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 4.7%, ROE 17.7%, ROA 3.4% - with debt at 2.76 times equity and a free-cash-flow yield of 7.9%. Debt of 2.76 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 5.16% (payout ratio 13%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Others 81%, Heat Supply 19% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 4.7% |
|---|---|---|---|
| GLS Moat | 3.0 / 10 | ROE | 17.7% |
| Debt / equity | 2.76 | ROA | 3.4% |
| Free-cash-flow yield | 7.9% | Payout ratio | 13% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 41: Weak
KEP scores 41 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 6, no serious red flags - Red Flags score 40 (under 60), and the parts are thin too - value strong, premium strong, moat weak, health fair, red flags weak, option trading weak, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 49% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,308 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 2.0M shares a day on a market cap of $14.5B, with a beta of 0.79 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 40 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 89% below fair value | |
| Premium | Strong | implied volatility 49% | |
| Moat | Weak | moat 3.0/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Weak | Red Flags score 40/100 | |
| Option trading | Weak | 108 contracts a day, 1,308 open interest | |
| Stability | Good | beta 0.79, $14.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Korea Electric Power Corporation reports earnings on 12 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Electric
The 12 companies below are the closest to Korea Electric Power Corporation by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| EMA Emera Incorporated | 51.30 | 26.24 | -95% | 26Weak | $15.8B |
| DUKB Duke Energy Corporation 5.625% | 20.48 | 35.05 | +42% | 31No options | $15.9B |
| XELLL Xcel Energy Inc. 6.25% Junior Subordinated Notes, Series due 2085 | 21.57 | 22.17 | +3% | 15No options | $13.1B |
| PNW Pinnacle West Capital Corporation | 105.57 | 65.28 | -62% | 31Weak | $12.8B |
| SOJC The Southern Company JR 2017B NT 77 | 18.74 | 33.95 | +45% | 35No options | $18.7B |
| LNT Alliant Energy Corporation | 73.77 | 49.60 | -49% | 28Weak | $19.1B |
| EVRG Evergy, Inc. | 86.21 | 49.44 | -74% | 27Weak | $19.9B |
| OGE OGE Energy Corp. | 50.63 | 33.86 | -50% | 28Weak | $10.5B |
| SOJD Southern Company (The) Series 2 | 17.57 | 33.32 | +47% | 35No options | $20.2B |
| CMS CMS Energy Corporation | 70.98 | 48.16 | -47% | 29Weak | $22.3B |
| CMSA CMS Energy Corporation 5.6% JRSUB NT 78 | 19.34 | 30.51 | +37% | 31No options | $22.5B |
| EIX Edison International | 61.48 | 236.56 | +74% | 50Fair | $23.7B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about KEP
Is KEP undervalued right now?
By the GLS models, yes: at 11.30 the stock is 89% below the average fair value of 106.63 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of KEP and what does it mean?
KEP scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 4, 6. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for KEP?
106.63 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Korea Electric Power Corporation report earnings next?
The next earnings report is due on 12 Nov 2026 (before the open), 7 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does KEP have listed options, and how liquid are they?
Yes. The nightly snapshot found 12 listed contracts with 1,308 open interest across all expiries and implied volatility of 49% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is KEP an ADR?
Yes. KEP is an American depositary share (ADR): the US listing of Korea Electric Power Corporation, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.