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PKC

001340 · KOSPI · ₩001340 · PKC

₩4,735▼ ₩20 (0.42%)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

With these assumptions the model gives no positive value.

Enterprise value
₩189B
Equity value
−₩72B
WACC
5.5%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩4,735, the model needs an operating margin of 11.3% every year (it uses 6.9%).
  • Or revenue growth +20.5 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 4.0% to 12.1% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
  • Today's P/E is 28.4× against a typical 32.7× 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
—
Base
—
Bull
₩6,064
+28.1%

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 (6.9%).

Revenue growth

  • 5.4%

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

    Default: the last 3 years' revenue growth (5.4% a year, annual reports), fading to 3% by year 5.

  • 4.8%

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

    Default: the last 3 years' revenue growth (5.4% a year, annual reports), fading to 3% by year 5.

  • 4.2%

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

    Default: the last 3 years' revenue growth (5.4% a year, annual reports), fading to 3% by year 5.

  • 3.6%

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

    Default: the last 3 years' revenue growth (5.4% 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 (5.4% a year, annual reports), fading to 3% by year 5.

Business

  • 6.9%

    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.

  • 23.8%

    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).

  • 29.7%

    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).

  • -0.5%

    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.

  • 0.6

    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 0.37, 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)
₩283B
Net debt (borrowings and leases − cash and deposits)
₩261B
Shares
45,028,089
Share price
₩4,735
Market cap
₩213B

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₩234B₩245B₩272B₩298B₩313B₩326B₩338B₩348B
Growth0.3%5.0%11.0%5.4%4.8%4.2%3.6%3.0%
EBIT₩18B₩9.7B₩12B₩21B₩22B₩22B₩23B₩24B
EBIT margin7.6%4.0%4.5%6.9%6.9%6.9%6.9%6.9%
After-tax EBIT₩13B₩7.1B₩8.8B₩15B₩16B₩16B₩17B₩17B
+ Depreciation———₩71B₩74B₩78B₩80B₩83B
− Capital spending₩41B₩47B₩142B₩89B₩93B₩97B₩100B₩103B
− Working capital−₩2.7B₩295M−₩26B−₩76M−₩72M−₩66M−₩59M−₩51M
Free cash flow———−₩2.6B−₩2.7B−₩2.9B−₩3B−₩3.1B
Discount factor———0.9470.8980.8510.8060.764
Present value———−₩2.5B−₩2.5B−₩2.4B−₩2.4B−₩2.3B

Terminal value ₩263B, worth ₩201B today: 106% 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 ₩4,978 a share)Now 0.95×₩5,5761.12×₩7,0651.42×₩9,4691.90×
Price / earnings (last 12 months: ₩167 a share)Now 28.4×₩1,85411.1×₩5,44932.7×₩9,04654.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩351 a share)Now 13.5×₩3,90711.1×₩11,48132.7×₩19,06154.3×

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%
4.5%——₩448₩2,092₩4,801
5.0%———₩335₩1,950
5.5%————₩225
6.0%—————
6.5%—————

Now (TTM)

Market cap
₩213B
Enterprise value
₩475B
P/E
28.4×
P/B
1.0×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.6%

Over time (at each year end)

20252024202320222021
Price₩5,630₩7,130₩9,090₩5,029₩6,021
Market cap₩254B₩321B₩409B₩226B₩271B
P/E25.1×89.2×53.0×10.0×18.2×
P/B1.1×1.5×1.9×1.1×1.4×
P/S0.9×1.3×1.8×1.0×1.4×
EV/EBITDA—————
Dividend yield0.5%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
PKC28.4×1.0×0.8×—0.6%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
Hanwha6.3×0.4×0.1×—1.4%
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%
Similar companies (median)5.3×0.4×0.4×8.9×0.4%

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

Also known as: PKC / 001340 / KRX:001340

Source: KRX statistical information