u/springmeds ·
Reddit — r/ValueInvesting
· May 06, 2026 at 10:44
· ⬆ 17 pts
· 💬 17 comments
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Summary
The post compares SK Hynix (via GDR HY9H) to Micron, arguing Hynix is deeply undervalued based on DCF (68% undervalued), low P/E (13.5x), forward P/E (4.6x), and PEG (0.4x).
Author suggests the valuation gap persists partly because US investors cannot easily buy Hynix, but European investors can use the German-listed GDR (HY9H).
Quality assessment: Moderately well-researched DD – uses specific valuation multiples and a DCF claim, but lacks detailed cash flow derivation and includes no risk analysis beyond accessibility.
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Comments17
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▶ Full Post Text
I keep seeing posts here about Micron. If you’re analyzing this stock and think the train has already left, take a look at SK Hynix, which has much more attractive value:
* DCF: 68% undervalued vs. 138% overvalued for Micron
* P/E: 13.5x vs. 29.9x
* Forward P/E: 4.6x vs. 8.2x
* PEG: 0.4x vs. 1.1x
In my view, Hynix still remains deeply undervalued despite its crazy growth in recent months.
I know many will say they can’t buy it, that’s probably one reason it’s still undervalued. However, for European investors there is an option: a GDR listed on the German exchange under the ticker HY9H. I’m not sure whether American investors can buy it.
Author states SK Hynix has DCF showing 68% undervaluation vs. Micron’s 138% overvaluation, with P/E 13.5x (vs. 29.9x), forward P/E 4.6x (vs. 8.2x), and PEG 0.4x (vs. 1.1x). The wide valuation discount relative to Micron creates a mean-reversion opportunity; limited US access may keep the mispricing persistent but provides a favorable entry for eligible investors. SK Hynix appears deeply undervalued on traditional value metrics while its competitor trades at a significant premium, making the GDR a potential long-term value play. KOR/ Germany exchange liquidity, currency risk, semiconductor cyclicality, DRAM price downturn, limited US investor access reducing price discovery. No additional actionable trade ideas explicitly stated (short Micron is implied but not recommended).