KOSPI · 001060 · Biotech & Pharma · ₩001060

JW PharmaceuticalJW중외제약

001060 · KOSPI · ₩001060 · JW중외제약

₩23,150▼ ₩50 (0.22%)End-of-day · Oct 29, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩52,622

vs the current price (₩23,150)

Enterprise value: ₩1.3T
Equity value: ₩1.3T
WACC: 7.3%

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 127% 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 ₩23,150, the model needs an operating margin of 5.6% every year (it uses 11.6%).
Or revenue growth −19.3 points a year higher than assumed in each of the 5 years.
Margins ranged from 5.1% to 13.4% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
Today's P/E is 5.7× against a typical 15.4× 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: ₩31,891; +37.8%
Base: ₩52,622; +127.3%
Bull: ₩87,650; +278.6%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (11.6%).

Revenue growth

Revenue growth, year 14.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 23.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 33.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin11.6%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation3.7%
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).
Capital spending4.7%
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).
Working capital9.3%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
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.
Beta0.6
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 0.33, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩821B
Net debt (borrowings and leases − cash and deposits): ₩17B
+ Stakes and investments: ₩32B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩2,000
Shares: 25,133,458; incl. 551,924 preferred
Share price: ₩23,150
Market cap: ₩587B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩749B	₩719B	₩775B	₩855B	₩889B	₩921B	₩951B	₩980B
Growth	9.4%	−3.9%	7.8%	4.2%	3.9%	3.6%	3.3%	3.0%
EBIT	₩100B	₩82B	₩94B	₩99B	₩103B	₩107B	₩110B	₩114B
EBIT margin	13.4%	11.5%	12.2%	11.6%	11.6%	11.6%	11.6%	11.6%
After-tax EBIT	₩73B	₩60B	₩68B	₩72B	₩75B	₩77B	₩80B	₩82B
+ Depreciation	—	—	—	₩32B	₩33B	₩34B	₩35B	₩36B
− Capital spending	₩41B	₩28B	₩36B	₩40B	₩42B	₩43B	₩45B	₩46B
− Working capital	₩17B	₩80B	−₩37B	₩3.2B	₩3.1B	₩3B	₩2.8B	₩2.7B
Free cash flow	—	—	—	₩60B	₩63B	₩65B	₩68B	₩70B
Discount factor	—	—	—	0.932	0.869	0.810	0.755	0.703
Present value	—	—	—	₩56B	₩55B	₩53B	₩51B	₩49B

Terminal value ₩1.5T, worth ₩1T today: 80% 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:

	Low	Typical	High
Price / book (book value ₩16,310 a share)Now 1.42×	₩27,5951.69×	₩40,0532.46×	₩55,7133.42×
Price / earnings (last 12 months: ₩4,030 a share)Now 5.74×	₩32,3128.02×	₩61,97315.4×	₩164,06440.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,439 a share)Now 5.22×	₩35,5938.02×	₩68,26615.4×	₩180,72540.7×

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%
6.3%	₩54,989	₩59,496	₩65,051	₩72,067	₩81,213
6.8%	₩50,152	₩53,790	₩58,186	₩63,603	₩70,446
7.3%	₩46,087	₩49,073	₩52,622	₩56,909	₩62,193
7.8%	₩42,623	₩45,109	₩48,022	₩51,483	₩55,665
8.3%	₩39,637	₩41,731	₩44,156	₩46,997	₩50,373

Now (TTM)

Market cap: ₩569B
Enterprise value: ₩564B
P/E: 5.6×
P/B: 1.4×
P/S: 0.7×
EV/EBITDA: —
Dividend yield: 2.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩25,500	₩24,000	₩35,550	₩18,900	₩22,800
Market cap	₩627B	₩590B	₩874B	₩465B	₩560B
P/E	10.2×	9.1×	23.6×	14.6×	—
P/B	1.7×	1.8×	3.3×	2.1×	3.0×
P/S	0.8×	0.8×	1.2×	0.7×	0.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	2.5%	1.9%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
JW Pharmaceutical	5.6×	1.4×	0.7×	—	2.8%
Samsung Biologics	31.9×	7.6×	13.9×	—	0.0%
Celltrion	27.9×	2.5×	9.0×	—	0.0%
Alteogen	79.4×	28.6×	60.3×	—	0.1%
SK biopharmaceuticals	15.2×	6.0×	7.1×	—	0.0%
Yuhan	23.2×	2.3×	2.4×	30.2×	0.8%
HLB	—	15.4×	54.3×	—	0.0%
Similar companies (median)	27.9×	6.8×	11.4×	30.2×	0.0%

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

Also known as: JW Pharmaceutical / JW중외제약 / 001060 / KRX:001060

Source: KRX statistical information