New Buy, W700k PO: Undervalued de facto holding company of Samsung Electronics

Research evidence excerpt

New Buy, W700k PO: Undervalued de facto holding company of Samsung Electronics

Holdco discount rate analysis

Based on the market value of 5% stake in SEC, Samsung C&T has historically traded at a

premium, although a premium that has steadily compressed over time and recently

moved into discount territory. However, incorporating Samsung C&T’s listed affiliate

holdings including SEC, Samsung Biologics, Samsung Life Insurance, Samsung Epis

Holdings, Samsung SDS and Samsung E&A indicate that the company has consistently

traded at a holding company discount relative to the aggregate value of its underlying

stakes.

Exhibit 17: Samsung C&T’s discount rate relative to its stake in its Exhibit 18: Samsung C&T’s discount rate relative to its 5% stake in

affiliates *negative discount rate means Samsung C&T’s value Samsung Electronics *negative discount rate means Samsung C&T’s

undervalued relative to its ownership in its affiliates value undervalued relative to its ownership in Samsung Electronics

Samsung C&T appears undervalued compared to its ownership in all of Samsung C&T appears undervalued compared to its 5% ownership in

its affiliates Samsung Electronics

-30% 60%

50%

40% -40%

30%

20%

-50% 10%

0%

-60% -10%

-20%

-70% -30%

Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22Jan-23May-23Sep-23Jan-24May-24Sep-24Jan-25May-25Sep-25Jan-26May-26 Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22Jan-23May-23Sep-23Jan-24May-24Sep-24Jan-25May-25Sep-25Jan-26May-26

Source: BofA Global Research estimates Source: BofA Global Research estimates

*Note: Samsung Group affiliates refer to Samsung Electronics, Samsung Biologics, Samsung Epis BofA GLOBAL RESEARCH

holdings, Samsung Life insurance, Samsung SDS, and Samsung E&A

BofA GLOBAL RESEARCH

How to calculate the discount rate