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Choheung

002600 · KOSPI · ₩002600 · 조흥

₩139,300▲ ₩800 (0.58%)End-of-day · Oct 30, 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

₩493,912

vs the current price (₩139,300)

Enterprise value
₩218B
Equity value
₩296B
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 255% 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 ₩139,300, the model needs an operating margin of 2.0% every year (it uses 4.3%).
  • 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 38.1× against a typical 13.7× 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
₩182,940
+31.3%
Base
₩493,912
+254.6%
Bull
₩1,073,401
+670.6%

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 (4.3%).

Revenue growth

  • 14.6%

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

    Default: the last 3 years' revenue growth (14.6% a year, annual reports), fading to 3% by year 5.

  • 11.7%

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

    Default: the last 3 years' revenue growth (14.6% a year, annual reports), fading to 3% by year 5.

  • 8.8%

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

    Default: the last 3 years' revenue growth (14.6% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (14.6% 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 (14.6% a year, annual reports), fading to 3% by year 5.

Business

  • 4.3%

    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.

  • 2.5%

    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).

  • 3.2%

    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).

  • 33.6%

    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.

  • 4.01%

    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.

  • 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 0.08, 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.

  • 5.51%

    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)
₩500B
Net debt (borrowings and leases − cash and deposits)
−₩78B
Shares
600,000
Share price
₩139,300
Market cap
₩84B

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₩406B₩428B₩488B₩573B₩640B₩696B₩737B₩759B
Growth25.3%5.5%14.0%14.6%11.7%8.8%5.9%3.0%
EBIT₩16B₩21B₩19B₩25B₩28B₩30B₩32B₩33B
EBIT margin3.9%4.9%3.8%4.3%4.3%4.3%4.3%4.3%
After-tax EBIT₩11B₩15B₩14B₩18B₩20B₩22B₩23B₩24B
+ Depreciation———₩14B₩16B₩17B₩18B₩19B
− Capital spending₩8.9B₩9B₩25B₩18B₩20B₩22B₩24B₩24B
− Working capital−₩32B−₩36B₩11B₩25B₩23B₩19B₩14B₩7.4B
Free cash flow———−₩11B−₩7B−₩2.1B₩4B₩11B
Discount factor———0.9320.8680.8090.7540.703
Present value———−₩9.9B−₩6.1B−₩1.7B₩3B₩7.7B

Terminal value ₩320B, worth ₩225B today: 103% 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 ₩244,761 a share)Now 0.57×₩140,8510.58×₩171,8260.70×₩205,0850.84×
Price / earnings (last 12 months: ₩3,660 a share)Now 38.1×₩26,0927.13×₩50,27213.7×₩245,17067.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩7,735 a share)Now 18.0×₩55,1437.13×₩106,24413.7×₩518,13767.0×

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%
6.3%₩567,984₩584,065₩603,517₩627,664₩658,639
6.8%₩519,642₩530,316₩542,891₩558,031₩576,745
7.3%₩479,184₩486,042₩493,912₩503,107₩514,091
7.8%₩444,866₩448,987₩453,565₩458,731₩464,667
8.3%₩415,424₩417,553₩419,792₩422,172₩424,732

Now (TTM)

Market cap
₩84B
Enterprise value
₩4.9B
P/E
38.1×
P/B
0.6×
P/S
0.2×
EV/EBITDA
—
Dividend yield
4.3%

Over time (at each year end)

20252024202320222021
Price₩160,000₩172,900₩172,800₩202,500₩188,000
Market cap₩96B₩104B₩104B₩122B₩113B
P/E11.9×41.3×291.9×10.9×7.0×
P/B0.6×0.7×0.7×0.8×0.8×
P/S0.2×0.2×0.3×0.4×0.4×
EV/EBITDA—————
Dividend yield3.8%3.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Choheung38.1×0.6×0.2×—4.3%
Samyang Foods17.6×5.6×3.1×—0.4%
Orion10.8×1.1×1.3×5.4×3.0%
CJ Cheiljedang—0.3×0.1×—3.5%
Nongshim12.3×0.8×0.7×—1.5%
Otoki17.4×0.6×0.3×—2.8%
Hite Jinro23.7×1.0×0.5×6.4×4.4%
Similar companies (median)17.4×0.9×0.6×5.9×2.9%

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

Also known as: Choheung / 조흥 / 002600 / KRX:002600

Source: KRX statistical information