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Daehan Flour Mill

001130 · KOSPI · ₩001130 · 대한제분

₩10,700▼ ₩180 (1.65%)End-of-day · Oct 27, 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

₩37,160

vs the current price (₩10,700)

Enterprise value
₩744B
Equity value
₩628B
WACC
5.9%

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 247% 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 ₩10,700, the model needs an operating margin of 2.0% every year (it uses 3.7%).

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
₩6,628
−38.1%
Base
₩37,160
+247.3%
Bull
₩102,757
+860.3%

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 (3.7%).

Revenue growth

  • 0.2%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 0.9%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 1.6%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 2.3%

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

    Default: the last 3 years' revenue growth (0.2% 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 (0.2% a year, annual reports), fading to 3% by year 5.

Business

  • 3.7%

    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.

  • 2.7%

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

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

  • 1.4%

    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).

  • 31.3%

    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

  • 2%

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

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

  • 4.11%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.6

    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 -0.06, 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.

  • 5.61%

    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)
₩1.4T
Net debt (borrowings and leases − cash and deposits)
₩156B
+ Stakes and investments
₩42B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.4B
Shares
16,900,000
Share price
₩10,700
Market cap
₩181B

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₩1.4T₩1.4T₩1.4T₩1.4T₩1.4T₩1.4T₩1.5T₩1.5T
Growth5.4%−4.6%0.0%0.2%0.9%1.6%2.3%3.0%
EBIT₩55B₩72B₩62B₩51B₩52B₩53B₩54B₩55B
EBIT margin3.8%5.3%4.5%3.7%3.7%3.7%3.7%3.7%
After-tax EBIT₩40B₩52B₩45B₩37B₩38B₩38B₩39B₩40B
+ Depreciation₩38B——₩37B₩38B₩38B₩39B₩40B
− Capital spending₩12B₩17B₩28B₩19B₩20B₩20B₩20B₩21B
− Working capital−₩12B₩187B−₩137B₩866M₩3.9B₩7B₩10B₩14B
Free cash flow₩78B——₩54B₩52B₩50B₩48B₩46B
Discount factor———0.9450.8920.8430.7960.752
Present value———₩51B₩46B₩42B₩38B₩35B

Terminal value ₩707B, worth ₩532B today: 72% 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 ₩60,371 a share)Now 0.18×₩12,5160.21×₩14,2390.24×₩17,4230.29×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,876 a share)Now 3.72×₩7,3352.55×₩12,0064.17×₩37,46913.0×

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%
4.9%₩44,431₩47,061₩50,572₩55,525₩63,083
5.4%₩39,056₩40,733₩42,879₩45,737₩49,762
5.9%₩34,775₩35,843₩37,160₩38,839₩41,069
6.4%₩31,283₩31,946₩32,737₩33,708₩34,937
6.9%₩28,377₩28,764₩29,210₩29,736₩30,372

Now (TTM)

Market cap
₩181B
Enterprise value
₩337B
P/E
—
P/B
0.2×
P/S
0.1×
EV/EBITDA
—
Dividend yield
3.7%

Over time (at each year end)

20252024202320222021
Price₩14,611₩12,641₩12,781₩13,251₩15,451
Market cap₩247B₩214B₩216B₩224B₩261B
P/E—4.4×2.7×5.4×3.0×
P/B0.2×0.2×0.2×0.2×0.3×
P/S0.2×0.2×0.1×0.2×0.2×
EV/EBITDA——2.5×4.2×6.2×
Dividend yield2.7%2.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Daehan Flour Mill—0.2×0.1×—3.7%
Samyang Foods17.5×5.6×3.1×—0.4%
Orion10.5×1.1×1.2×5.3×3.1%
CJ Cheiljedang—0.3×0.1×—3.6%
Nongshim12.1×0.8×0.7×—1.5%
Otoki16.9×0.6×0.3×—2.9%
Hite Jinro23.3×1.0×0.4×6.4×4.5%
Similar companies (median)16.9×0.9×0.6×5.8×3.0%

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

Also known as: Daehan Flour Mill / 대한제분 / 001130 / KRX:001130

Source: KRX statistical information