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Hanwha

000880 · KOSPI · ₩000880 · 한화

₩94,000▲ ₩1,300 (1.40%)End-of-day · Oct 28, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩731,596

vs the current price (₩94,000)

Enterprise value
₩53T
Equity value
₩50T
WACC
7.0%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 678% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

  • To match today's price of ₩94,000, the model needs an operating margin of 2.1% every year (it uses 5.0%).
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
  • Today's P/E is 8.0× against a typical 3.8× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
₩197,629
+110.2%
Base
₩731,596
+678.3%
Bull
₩1,706,738
+1,715.7%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (5.0%).

Revenue growth

  • 6.3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 5.5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 4.6%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 3.8%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

Business

  • 5%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 7.3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 9.1%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 4.9%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.08%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 0.8

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.71, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.58%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩89T
Net debt (borrowings and leases − cash and deposits)
₩2.8T
Shares
68,005,510
incl. 14,676,613 preferred
Share price
₩94,000
Market cap
₩5.4T

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩53T₩56T₩75T₩95T₩100T₩104T₩108T₩112T
Growth−14.7%4.7%34.4%6.3%5.5%4.6%3.8%3.0%
EBIT₩2.4T₩2.4T₩4.1T₩4.7T₩5T₩5.2T₩5.4T₩5.6T
EBIT margin4.5%4.3%5.5%5.0%5.0%5.0%5.0%5.0%
After-tax EBIT₩1.7T₩1.8T₩3T₩3.4T₩3.6T₩3.8T₩3.9T₩4T
+ Depreciation———₩6.9T₩7.3T₩7.6T₩7.9T₩8.1T
− Capital spending₩4.6T₩5.9T₩6.1T₩8.6T₩9.1T₩9.5T₩9.9T₩10T
− Working capital₩6.9T₩1.4T−₩3.8T₩275B₩255B₩225B₩194B₩159B
Free cash flow———₩1.5T₩1.6T₩1.7T₩1.8T₩1.9T
Discount factor———0.9350.8740.8170.7640.714
Present value———₩1.4T₩1.4T₩1.4T₩1.4T₩1.3T

Terminal value ₩64T, worth ₩46T today: 87% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩197,565 a share)Now 0.48×₩36,6700.19×₩101,8800.52×₩181,7140.92×
Price / earnings (last 12 months: ₩11,731 a share)Now 8.01×₩18,9951.62×₩45,1043.84×₩135,50011.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩25,922 a share)Now 3.63×₩41,9741.62×₩99,6693.84×₩299,42211.6×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
6.0%₩772,127₩848,695₩944,479₩1,067,788₩1,232,530
6.5%₩690,708₩751,585₩826,019₩919,133₩1,039,004
7.0%₩623,101₩672,415₩731,596₩803,955₩894,473
7.5%₩566,099₩606,671₩654,610₩712,141₩782,483
8.0%₩517,413₩551,234₩590,676₩637,279₩693,205

Now (TTM)

Market cap
₩5T
Enterprise value
₩7.8T
P/E
6.3×
P/B
0.4×
P/S
0.1×
EV/EBITDA
—
Dividend yield
1.4%

Over time (at each year end)

20252024202320222021
Price₩97,955₩32,292₩30,911₩30,791₩37,694
Market cap₩5.2T₩1.7T₩1.6T₩1.6T₩2T
P/E14.0×2.2×4.3×1.3×2.2×
P/B0.4×0.2×0.2×0.3×0.4×
P/S0.1×0.0×0.0×0.0×0.0×
EV/EBITDA—————
Dividend yield1.3%3.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hanwha6.3×0.4×0.1×—1.4%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
SKC—2.1×2.0×—0.0%
KCC0.9×0.3×0.5×8.9×0.0%
Kumho Petro Chemical5.3×0.4×0.4×—1.6%
Soulbrain19.4×2.2×2.3×—0.7%
Similar companies (median)5.3×0.5×0.5×8.9×0.4%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Hanwha / 한화 / 000880 / KRX:000880

Source: KRX statistical information