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Cheil Grinding Wheel IND

001560 · KOSPI · ₩001560 · 제일연마

₩8,670▲ ₩120 (1.40%)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

₩13,775

vs the current price (₩8,670)

Enterprise value
₩61B
Equity value
₩105B
WACC
7.4%

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 59% 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 ₩8,670, the model needs an operating margin of 3.5% every year (it uses 7.2%).
  • 35% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
  • Today's P/E is 9.8× against a typical 10.4× 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
₩10,019
+15.6%
Base
₩13,775
+58.9%
Bull
₩20,448
+135.9%

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 (7.2%).

Revenue growth

  • -1.8%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.8% 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 (-1.8% a year, annual reports), fading to 3% by year 5.

Business

  • 7.2%

    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.

  • 3.3%

    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).

  • 4.1%

    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).

  • 31.5%

    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.

  • 4.11%

    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 -0.03, 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)
₩82B
Net debt (borrowings and leases − cash and deposits)
−₩34B
+ Stakes and investments
₩9.1B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩140M
Shares
7,600,000
Share price
₩8,670
Market cap
₩66B

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₩85B₩82B₩79B₩80B₩80B₩80B₩82B₩84B
Growth2.2%−3.8%−3.8%−1.8%−0.6%0.6%1.8%3.0%
EBIT₩7.9B₩5.8B₩4.2B₩5.8B₩5.7B₩5.8B₩5.9B₩6.1B
EBIT margin9.3%7.0%5.4%7.2%7.2%7.2%7.2%7.2%
After-tax EBIT₩5.7B₩4.2B₩3.1B₩4.2B₩4.2B₩4.2B₩4.3B₩4.4B
+ Depreciation———₩2.6B₩2.6B₩2.6B₩2.7B₩2.8B
− Capital spending₩4.1B₩811M₩5.1B₩3.3B₩3.3B₩3.3B₩3.4B₩3.5B
− Working capital−₩9.2B−₩526M−₩1.8B−₩464M−₩152M₩151M₩455M₩772M
Free cash flow———₩4B₩3.7B₩3.4B₩3.2B₩2.9B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩3.7B₩3.2B₩2.7B₩2.4B₩2.1B

Terminal value ₩68B, worth ₩47B today: 77% 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 ₩14,292 a share)Now 0.61×₩9,0900.64×₩9,8100.69×₩11,0820.78×
Price / earnings (last 12 months: ₩886 a share)Now 9.79×₩4,6625.26×₩9,20010.4×₩26,29829.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,201 a share)Now 7.22×₩6,3205.26×₩12,47310.4×₩35,65329.7×

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%
6.4%₩14,534₩15,014₩15,601₩16,333₩17,278
6.9%₩13,776₩14,148₩14,594₩15,139₩15,819
7.4%₩13,136₩13,429₩13,775₩14,188₩14,692
7.9%₩12,590₩12,823₩13,094₩13,412₩13,793
8.4%₩12,117₩12,304₩12,519₩12,768₩13,061

Now (TTM)

Market cap
₩66B
Enterprise value
₩32B
P/E
9.8×
P/B
0.6×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩9,980₩9,140₩8,690₩8,650₩8,720
Market cap₩76B₩69B₩66B₩66B₩66B
P/E5.6×11.6×6.1×30.1×10.9×
P/B0.7×0.7×0.7×0.7×0.7×
P/S1.0×0.8×0.8×0.8×0.8×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Cheil Grinding Wheel IND9.8×0.6×0.8×—0.0%
Tokai Carbon Korea30.7×4.3×7.0×—0.7%
Hanilcementco12.1×0.7×0.9×—6.0%
Wonik QnC13.8×1.2×0.7×—0.5%
Sampyo Cement16.9×0.8×0.9×6.0×2.2%
Hanil Holdings9.5×0.3×0.3×—5.9%
IS Dongseo5.2×0.3×0.4×—3.5%
Similar companies (median)13.0×0.7×0.8×6.0×2.8%

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

Also known as: Cheil Grinding Wheel IND / 제일연마 / 001560 / KRX:001560

Source: KRX statistical information