SS-Code · How It Works

A fair value engine
built for the Korean market.

Not a generic model trained on US data.
SS-Code is built on proprietary data processed specifically for Korea's structural market realities —
the only system of its kind available domestically.

2Price Anchors
10Input Variables
4-StageTarget Price Output
FreeCurrently Available
KOREA-SPECIFIC

Why Korea needs
its own valuation model.

Most valuation frameworks are built on US large-cap data. Korea's market has a fundamentally different structure. Applying a generic model to Korean stocks produces systematically wrong numbers.

01

Most stocks have no analyst coverage

In the US, nearly every listed company has sell-side EPS consensus estimates. In Korea, the majority of small- and mid-cap stocks have zero analyst coverage. SS-Code fills this gap with internally computed forward EPS estimates derived from financial trend analysis.

02

The Korea Discount is structural

Korean companies trade at persistent discounts to global peers with identical fundamentals, due to governance structure, liquidity, and foreign accessibility. Ignoring this structural discount means target prices are consistently overstated.

03

Valuation multiples shift with macro regimes

The Korean equity market is highly sensitive to global macro cycles. The market-acceptable PER for the same company varies significantly between BULL and CRISIS regimes. SS-Code directly incorporates the Regime Engine's current regime reading into every target price calculation.

04

Supply/demand and fundamentals diverge

High-quality small-cap Korean stocks can remain depressed for extended periods due to low liquidity and poor institutional coverage. A pure fundamental model cannot capture this gap. SS-Code solves this by providing two separate price anchors simultaneously — making the divergence visible.

No one else in Korea provides this.
The combination of Korea Customs trade data, macro regime signals, proprietary EPS estimation, and dual-path target pricing in a single pipeline is exclusive intellectual property developed by Layer Investment Research.

Proprietary IP
DUAL PATH

One stock.
Two price reference points.

A system that produces a single target price hides the assumptions behind it. SS-Code presents two anchors simultaneously — and the gap between them is itself the investment insight.

SS-Code Dual Path — Path A / Path B
The same stock is valued from two different starting points. The difference between the two outputs is the signal.
Path A — Market Price Anchor

Is the current market price justified?

Uses current stock price and consensus EPS as the anchor to compute a target price. The starting point reflects what market participants currently expect — then adjusts for fundamental quality.

Anchor Basis
Current Price ÷ Consensus EPS
Anchor PER → quality-adjusted → target PER → target price
Path B — Intrinsic Value Anchor

What is the company fundamentally worth?

Uses sector-average PER as the anchor instead of current market price. This calculates what valuation the company should deserve, independent of whether it is currently over- or undervalued.

Anchor Basis
Sector Average PER
Sector anchor PER → quality-adjusted → target PER → target price

What the gap between Path A and Path B tells you. If Path A target > Path B target, the market is valuing this company above sector-average — a premium multiple is already priced in. If Path B target > Path A target, the market hasn't yet reflected even sector-average value in the price. The larger the gap, the stronger the case for mispricing.

OUTPUT

Four prices.
Four scenarios.

SS-Code doesn't output a single target price. It presents four scenario-based price levels — each with transparent assumptions the investor can evaluate directly.

P_target Base Target
Core scenario. Target price reflecting quality score and current macro regime.
P_high Upper Band
±10–20% depending on regime. Upside scenario target.
P_low Lower Band
Downside protection floor. BPS-based minimum applied.
P_surprise Upside Case
Triggered only when proprietary EPS estimate exceeds consensus by 25%+.
INVESTMENT RESEARCH

Korean market structure.
Korean market valuation.

SS-Code is currently available free of charge.
Enter a stock ticker and see the output for yourself.

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SS-Code outputs are provided for reference purposes only. Investment decisions and outcomes are the sole responsibility of the investor.
Target prices are statistically derived from financial data and do not guarantee future returns.