KOSPI · 002140 · Food & Beverage · ₩002140

Korea Industrial고려산업

002140 · KOSPI · ₩002140 · 고려산업

₩1,779▼ ₩15 (0.84%)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

₩4,624

vs the current price (₩1,779)

Enterprise value: ₩185B
Equity value: ₩115B
WACC: 5.1%

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 160% 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 ₩1,779, the model needs an operating margin of 2.5% every year (it uses 3.5%).
Or revenue growth −15.7 points a year higher than assumed in each of the 5 years.
Today's P/E is 6.1× against a typical 12.4× 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: —
Base: ₩4,624; +159.9%
Bull: ₩19,724; +1,008.7%

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 (3.5%).

Revenue growth

Revenue growth, year 12.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 22.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 32.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% 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 (2.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.5%
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 & amortisation1.3%
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 spending2.5%
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 capital20.4%
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, 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): ₩300B
Net debt (borrowings and leases − cash and deposits): ₩94B
+ Stakes and investments: ₩24B; Associates, long-term financial assets and deposits (book value)
Shares: 24,939,425
Share price: ₩1,779
Market cap: ₩44B

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	₩319B	₩308B	₩297B	₩307B	₩314B	₩322B	₩331B	₩341B
Growth	14.6%	−3.6%	−3.4%	2.2%	2.4%	2.6%	2.8%	3.0%
EBIT	₩8B	₩14B	₩14B	₩11B	₩11B	₩11B	₩12B	₩12B
EBIT margin	2.5%	4.6%	4.6%	3.5%	3.5%	3.5%	3.5%	3.5%
After-tax EBIT	₩5.8B	₩10B	₩10B	₩7.8B	₩8B	₩8.2B	₩8.4B	₩8.7B
+ Depreciation	₩3.7B	₩4.3B	₩4.3B	₩4B	₩4.1B	₩4.2B	₩4.3B	₩4.4B
− Capital spending	₩16B	₩3.4B	₩3.4B	₩7.7B	₩7.8B	₩8.1B	₩8.3B	₩8.5B
− Working capital	−₩11B	₩18B	−₩23B	₩1.3B	₩1.5B	₩1.7B	₩1.8B	₩2B
Free cash flow	₩4.5B	−₩7B	₩34B	₩2.8B	₩2.7B	₩2.6B	₩2.6B	₩2.5B
Discount factor	—	—	—	0.951	0.905	0.861	0.819	0.779
Present value	—	—	—	₩2.6B	₩2.4B	₩2.3B	₩2.1B	₩2B

Terminal value ₩223B, worth ₩174B today: 94% 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 ₩4,814 a share)Now 0.37×	₩2,4820.52×	₩3,4390.71×	₩5,5041.14×
Price / earnings (last 12 months: ₩293 a share)Now 6.07×	₩1,9406.62×	₩3,62012.4×	₩7,72826.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩422 a share)Now 4.21×	₩2,7976.62×	₩5,22012.4×	₩11,14426.4×

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%
4.1%	₩5,646	₩6,776	₩8,436	₩11,116	₩16,188
4.6%	₩4,372	₩5,126	₩6,164	₩7,687	₩10,146
5.1%	₩3,411	₩3,935	₩4,624	₩5,572	₩6,963
5.6%	₩2,661	₩3,036	₩3,513	₩4,139	₩5,000
6.1%	₩2,059	₩2,334	₩2,673	₩3,104	₩3,669

Now (TTM)

Market cap: ₩44B
Enterprise value: ₩137B
P/E: 6.1×
P/B: 0.4×
P/S: 0.1×
EV/EBITDA: 7.6×
Dividend yield: 2.2%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,540	₩2,585	₩3,140	₩3,470	₩2,910
Market cap	₩63B	₩64B	₩78B	₩87B	₩73B
P/E	6.6×	16.0×	23.1×	126.0×	16.1×
P/B	0.5×	0.6×	0.7×	0.8×	0.7×
P/S	0.2×	0.2×	0.2×	0.3×	0.3×
EV/EBITDA	7.7×	9.6×	14.9×	23.1×	16.9×
Dividend yield	1.6%	1.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Korea Industrial	6.1×	0.4×	0.1×	7.6×	2.2%
Samyang Foods	17.6×	5.6×	3.1×	—	0.4%
Orion	10.6×	1.1×	1.2×	5.3×	3.1%
CJ Cheiljedang	—	0.3×	0.1×	—	3.5%
Nongshim	12.0×	0.8×	0.6×	—	1.5%
Otoki	17.3×	0.6×	0.3×	—	2.9%
Hite Jinro	23.2×	0.9×	0.4×	6.4×	4.5%
Similar companies (median)	17.3×	0.9×	0.5×	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: Korea Industrial / 고려산업 / 002140 / KRX:002140

Source: KRX statistical information