Korea Electric Power Corporation (KEP): fair value, margin of safety and Wheel Score

Is KEP undervalued?

At 10.69 (close of 16 Oct 2026), KEP trades 100% below the GLS average fair value of 31,554.75. That average comes from 8 models run on the latest filings, and 8 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: EPV gives 48.85 while Graham Number gives 141,855.01. 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.

The nightly engine files KEP under High Yield Income: a dividend yield above 4%.

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.

Quality and financial health

Financial health is weak: KEP passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

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 8.7%. 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 5.39% (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.

Wheel Score 77: Good

KEP scores 77 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (9/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (18/20). Moat (6/15) is the part holding the score back.

Implied volatility is 51% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,915 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 918k shares a day on a market cap of $13.7B, 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 gives that 18 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 12 Nov 2026 (before the open), 27 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

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.

⚖ Compare KEP with 7 of them   All Utilities stocks →