KOSPI · 001420 · Auto parts · ₩001420

Taewonmulsan태원물산

001420 · KOSPI · ₩001420 · 태원물산

₩2,685▼ ₩25 (0.92%)End-of-day · Oct 30, 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

₩835

vs the current price (₩2,685)

Enterprise value: −₩28B
Equity value: ₩6.3B
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 69% 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 ₩2,685, the model needs an operating margin of −2.1% every year (it uses −6.8%).
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.

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: ₩1,242; −53.8%
Base: ₩835; −68.9%
Bull: ₩463; −82.8%

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 (−6.8%).

Revenue growth

Revenue growth, year 110.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.7% 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 (10.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-6.8%
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 & amortisation2%
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).
Capital spending4%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: not in the statements, so a typical level.
Working capital40%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
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 -0.19, 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)5.51%
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): ₩17B
Net debt (borrowings and leases − cash and deposits): −₩34B
+ Stakes and investments: ₩232M; Associates, long-term financial assets and deposits (book value)
Shares: 7,600,000
Share price: ₩2,685
Market cap: ₩20B

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	₩9.2B	₩12B	₩15B	₩19B	₩21B	₩22B	₩23B	₩24B
Growth	−15.9%	25.6%	28.5%	10.7%	8.8%	6.9%	4.9%	3.0%
EBIT	−₩811M	−₩894M	−₩978M	−₩1.3B	−₩1.4B	−₩1.5B	−₩1.6B	−₩1.6B
EBIT margin	−8.8%	−7.7%	−6.6%	−6.8%	−6.8%	−6.8%	−6.8%	−6.8%
After-tax EBIT	−₩588M	−₩648M	−₩709M	−₩941M	−₩1B	−₩1.1B	−₩1.1B	−₩1.2B
+ Depreciation	₩257M	₩212M	₩217M	₩382M	₩415M	₩444M	₩466M	₩480M
− Capital spending	—	—	—	₩764M	₩831M	₩888M	₩932M	₩960M
− Working capital	−₩7.9B	−₩10B	₩5.4B	₩738M	₩672M	₩573M	₩435M	₩280M
Free cash flow	—	—	—	−₩2.1B	−₩2.1B	−₩2.1B	−₩2B	−₩1.9B
Discount factor	—	—	—	0.932	0.868	0.809	0.754	0.703
Present value	—	—	—	−₩1.9B	−₩1.8B	−₩1.7B	−₩1.5B	−₩1.4B

Terminal value −₩27B, worth −₩19B today: 70% 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 ₩5,227 a share)Now 0.51×	₩2,8860.55×	₩5,1340.98×	₩6,8571.31×

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%	₩887	₩521	₩69	—	—
6.8%	₩1,164	₩860	₩491	₩36	—
7.3%	₩1,399	₩1,141	₩835	₩464	₩5
7.8%	₩1,599	₩1,379	₩1,120	₩811	₩438
8.3%	₩1,773	₩1,582	₩1,360	₩1,100	₩790

Now (TTM)

Market cap: ₩20B
Enterprise value: −₩13B
P/E: —
P/B: 0.5×
P/S: 1.2×
EV/EBITDA: —
Dividend yield: 7.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,560	₩3,700	₩4,950	₩3,895	₩5,820
Market cap	₩27B	₩28B	₩38B	₩30B	₩44B
P/E	—	1.6×	—	—	544.2×
P/B	0.6×	0.6×	1.3×	1.0×	1.4×
P/S	1.8×	2.4×	4.1×	2.7×	3.0×
EV/EBITDA	—	—	—	—	—
Dividend yield	5.6%	5.4%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Taewonmulsan	—	0.5×	1.2×	—	7.4%
Hyundai Mobis	8.3×	0.6×	0.5×	—	1.9%
SL	5.9×	0.8×	0.4×	3.6×	0.0%
HL Mando	10.3×	0.6×	0.2×	—	2.0%
Hyundai WIA	18.9×	0.4×	0.2×	—	2.4%
Samhyun	—	11.2×	15.8×	—	0.0%
SNT Dynamics	12.5×	0.7×	0.8×	—	7.3%
Similar companies (median)	10.3×	0.6×	0.4×	3.6×	2.0%

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

Also known as: Taewonmulsan / 태원물산 / 001420 / KRX:001420

Source: KRX statistical information