On October 15, 2026, the iShares MSCI South Korea Capped ETF EWY declined sharply by 4.02%, closing at $159.83, just above its 200-day moving average of $159.63. This marks the first time in 17 months that EWY has approached this critical technical support level amid renewed pressure on technology stocks and concerns over AI valuations.
The iShares MSCI South Korea ETF EWY experienced a notable 4.02% drop on Wednesday, closing at $159.83, barely above its 200-day moving average of $159.63. This technical level has not been tested for 17 months, highlighting the severity of the recent selloff. The decline is largely attributed to renewed selling pressure on South Korean technology stocks, which have been under scrutiny amid growing concerns about inflated AI-related valuations. South Korean equities broadly fell 8.34% to around 5,540 points, extending a seven-session losing streak that underscores investor caution in the region.
EWY tracks the MSCI South Korea Index, providing exposure to a broad basket of South Korean equities, including large-cap technology and industrial firms. With a market capitalization of $22.76 billion, EWY is a key vehicle for investors seeking diversified access to South Korea's equity market. The ETF trades on the ARCA exchange and carries a beta of 1.95, indicating higher volatility relative to the broader market.
According to GuruFocus’ proprietary GF Value™ metric, EWY’s intrinsic value is estimated at $85.21, substantially below the current trading price of $159.83. This implies the ETF is trading at an 87.6% premium to its fair value, signaling a considerable margin of overvaluation. Investors should exercise caution given this wide gap, as the margin of safety is effectively negative. The GF Value™ calculation incorporates historical trading multiples, past business growth, and projected future performance, making it a comprehensive gauge of fundamental worth. However, it is important to note that the GF Valuation label flags the data as "Data Out of Date, Use Caution," suggesting that recent market dynamics may not be fully captured.
EWY’s trailing twelve-month price-to-earnings (P/E) ratio stands at 40.49x, a high multiple that reflects elevated market expectations. Unfortunately, there is no available five-year median P/E for EWY to provide a direct historical comparison, which limits the ability to contextualize the current valuation against longer-term norms. The forward P/E is also not available, further complicating forward-looking valuation assessments. For more details, see the GF Value™ page.
The GF Score™ is a composite metric designed to summarize a stock’s overall quality by evaluating financial strength, profitability, growth, valuation, and momentum. EWY’s GF Score™ of 85/100 indicates robust fundamentals and strong growth prospects despite its stretched valuation. Below is a breakdown of EWY’s key sub-ranks:
EWY’s strongest area is growth, scoring a perfect 10/10, reflecting impressive earnings growth of 242.81% over the past year and solid multi-year expansion. Profitability and momentum also score highly, indicating efficient operations and positive price trends in the recent past. Financial strength is solid at 7.7/10, supported by a low debt-to-equity ratio of 0.52 and strong cash ratios. However, valuation is the weakest link at 3/10, consistent with the GF Value™ overvaluation signal. This imbalance suggests that while EWY’s underlying fundamentals are healthy, the current market price may not justify the premium. More details are available on the EWY stock page.
GuruFocus tracks 8 premium gurus currently holding EWY in their portfolios. In recent quarters, 3 gurus have increased their stakes while 5 have trimmed positions, reflecting a cautious but engaged institutional stance. This mixed activity highlights differing views among top investors regarding EWY’s valuation and growth outlook. Insider activity is notably absent, with no reported insider buying or selling in the past 12 months. The guru 13F data is a key differentiator for GuruFocus users, providing unique insight into elite investor behavior that is not available on platforms like Simply Wall St or Morningstar.
The GF Value™ analysis clearly indicates that EWY is trading at a significant premium to its intrinsic value, suggesting limited margin of safety for new investors at current levels. Despite an impressive GF Score™ of 85, driven by strong growth and profitability, the stretched valuation rank of 3/10 signals caution. The mixed guru activity—with more trimming than adding—reinforces this cautious stance among sophisticated investors. For those considering exposure to South Korean equities via EWY, it is important to weigh the robust fundamentals against the high price and recent market volatility. For a deeper dive into EWY’s fundamentals and valuation, visit the EWY stock page.
EWY’s GF Score™ is 85 out of 100, indicating strong overall financial health, excellent growth prospects, and solid profitability, though its valuation is relatively weak.
Based on the GF Value™, EWY is approximately 87.6% overvalued, trading at $159.83 versus an intrinsic value estimate of $85.21, suggesting a significant premium in the current price.
What is EWY's P/E ratio compared to historical?
EWY’s trailing twelve-month P/E ratio is 40.49x, but there is no available five-year median P/E for comparison, limiting historical valuation context.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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