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Kukje Pharma

002720 · KOSPI · ₩002720 · 국제약품

₩3,345▼ ₩55 (1.62%)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

₩1,843

vs the current price (₩3,345)

Enterprise value
₩52B
Equity value
₩39B
WACC
6.8%

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 45% 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 ₩3,345, the model needs an operating margin of 3.1% every year (it uses 2.2%).
  • Or revenue growth +17.0 points a year higher than assumed in each of the 5 years.
  • 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 14.2× against a typical 18.8× 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
₩1,843
−44.9%
Bull
₩7,753
+131.8%

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 (2.2%).

Revenue growth

  • 11.5%

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

    Default: the last 3 years' revenue growth (11.5% a year, annual reports), fading to 3% by year 5.

  • 9.4%

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

    Default: the last 3 years' revenue growth (11.5% a year, annual reports), fading to 3% by year 5.

  • 7.3%

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

    Default: the last 3 years' revenue growth (11.5% a year, annual reports), fading to 3% by year 5.

  • 5.1%

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

    Default: the last 3 years' revenue growth (11.5% 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 (11.5% a year, annual reports), fading to 3% by year 5.

Business

  • 2.2%

    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.

  • 1.3%

    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).

  • 1.6%

    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).

  • 12.4%

    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

  • 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)
₩181B
Net debt (borrowings and leases − cash and deposits)
₩13B
− Minority interests
₩6.6M
Shares
21,159,832
Share price
₩3,345
Market cap
₩71B

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₩135B₩156B₩175B₩202B₩221B₩237B₩249B₩257B
Growth6.9%15.6%12.2%11.5%9.4%7.3%5.1%3.0%
EBIT−₩2B₩6.7B₩6.2B₩4.4B₩4.9B₩5.2B₩5.5B₩5.7B
EBIT margin−1.5%4.3%3.5%2.2%2.2%2.2%2.2%2.2%
After-tax EBIT−₩1.4B₩4.9B₩4.5B₩3.2B₩3.5B₩3.8B₩4B₩4.1B
+ Depreciation———₩2.6B₩2.9B₩3.1B₩3.2B₩3.3B
− Capital spending₩1B₩3B₩3.9B₩3.2B₩3.5B₩3.8B₩4B₩4.1B
− Working capital−₩7.3B₩6.9B−₩38M₩2.6B₩2.4B₩2B₩1.5B₩928M
Free cash flow———₩32M₩508M₩1.1B₩1.7B₩2.4B
Discount factor———0.9370.8770.8210.7690.720
Present value———₩30M₩445M₩880M₩1.3B₩1.7B

Terminal value ₩67B, worth ₩48B today: 92% 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 ₩4,696 a share)Now 0.71×₩4,4830.95×₩5,7111.22×₩7,6671.63×
Price / earnings (last 12 months: ₩236 a share)Now 14.2×₩3,04512.9×₩4,45318.8×₩9,59440.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩316 a share)Now 10.6×₩4,06712.9×₩5,94918.8×₩12,81640.6×

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%
5.8%₩2,177₩2,361₩2,591₩2,889₩3,294
6.3%₩1,872₩2,007₩2,173₩2,380₩2,650
6.8%₩1,621₩1,722₩1,843₩1,991₩2,177
7.3%₩1,410₩1,487₩1,576₩1,684₩1,815
7.8%₩1,231₩1,289₩1,357₩1,436₩1,530

Now (TTM)

Market cap
₩71B
Enterprise value
₩83B
P/E
14.2×
P/B
0.7×
P/S
0.4×
EV/EBITDA
—
Dividend yield
0.9%

Over time (at each year end)

20252024202320222021
Price₩4,300₩5,060₩5,920₩5,252₩5,605
Market cap₩91B₩107B₩125B₩111B₩119B
P/E16.0×20.6×—31.2×—
P/B0.9×1.2×1.5×1.5×1.7×
P/S0.5×0.7×0.9×0.9×1.0×
EV/EBITDA—————
Dividend yield0.7%0.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Kukje Pharma14.2×0.7×0.4×—0.9%
Samsung Biologics34.7×8.2×15.1×—0.0%
Celltrion28.2×2.5×9.1×—0.0%
Alteogen76.3×27.5×58.0×—0.1%
SK biopharmaceuticals15.2×6.0×7.1×—0.0%
Yuhan23.3×2.3×2.4×30.4×0.8%
HLB—15.5×54.7×—0.0%
Similar companies (median)28.2×7.1×12.1×30.4×0.0%

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

Also known as: Kukje Pharma / 국제약품 / 002720 / KRX:002720

Source: KRX statistical information