KOSPI · 003960 · Food & Beverage · ₩003960

Sajodaerim사조대림

003960 · KOSPI · ₩003960 · 사조대림

₩24,350▼ ₩100 (0.41%)End-of-day · Oct 28, 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

₩539,852

vs the current price (₩24,350)

Enterprise value: ₩5.6T
Equity value: ₩4.9T
WACC: 5.0%

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 2,117% 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 ₩24,350, the model needs an operating margin of 1.1% every year (it uses 4.6%).

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: ₩142,556; +485.4%
Base: ₩539,852; +2,117.1%
Bull: ₩1,469,132; +5,933.4%

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 (4.6%).

Revenue growth

Revenue growth, year 120.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (20.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 215.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (20.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 311.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (20.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 47.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (20.1% 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 (20.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.6%
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 & amortisation1.6%
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 spending1.2%
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).
Working capital7.3%
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 rate4.11%
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.
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 0.2, 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)5.61%
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): ₩3.6T
Net debt (borrowings and leases − cash and deposits): ₩569B
+ Stakes and investments: ₩45B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩121B
Shares: 9,164,467
Share price: ₩24,350
Market cap: ₩223B

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	₩2.1T	₩2.6T	₩3.5T	₩4.3T	₩4.9T	₩5.5T	₩5.9T	₩6.1T
Growth	2.2%	28.1%	32.4%	20.1%	15.8%	11.6%	7.3%	3.0%
EBIT	₩129B	₩133B	₩95B	₩196B	₩227B	₩254B	₩272B	₩280B
EBIT margin	6.2%	5.0%	2.7%	4.6%	4.6%	4.6%	4.6%	4.6%
After-tax EBIT	₩93B	₩96B	₩69B	₩142B	₩165B	₩184B	₩197B	₩203B
+ Depreciation	₩29B	₩44B	₩58B	₩68B	₩79B	₩88B	₩95B	₩97B
− Capital spending	₩15B	₩34B	₩56B	₩51B	₩59B	₩66B	₩71B	₩73B
− Working capital	−₩51B	₩20B	−₩31B	₩52B	₩49B	₩42B	₩29B	₩13B
Free cash flow	₩159B	₩87B	₩102B	₩107B	₩135B	₩164B	₩192B	₩215B
Discount factor	—	—	—	0.952	0.907	0.864	0.822	0.783
Present value	—	—	—	₩102B	₩123B	₩142B	₩158B	₩168B

Terminal value ₩6.3T, worth ₩4.9T today: 88% 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 ₩61,936 a share)Now 0.39×	₩27,1910.44×	₩31,7160.51×	₩40,3020.65×

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%
4.0%	₩576,321	₩684,979	₩847,636	₩1,117,982	₩1,656,173
4.5%	₩482,519	₩557,823	₩663,069	₩820,617	₩1,082,468
5.0%	₩412,130	₩466,917	₩539,852	₩641,785	₩794,372
5.5%	₩357,364	₩398,696	₩451,756	₩522,390	₩621,106
6.0%	₩313,543	₩345,614	₩385,639	₩437,021	₩505,421

Now (TTM)

Market cap: ₩223B
Enterprise value: ₩726B
P/E: —
P/B: 0.4×
P/S: 0.1×
EV/EBITDA: 4.8×
Dividend yield: 1.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩37,250	₩40,600	₩31,300	₩27,150	₩25,250
Market cap	₩341B	₩372B	₩287B	₩249B	₩231B
P/E	—	4.1×	3.1×	3.5×	3.7×
P/B	0.5×	0.5×	0.5×	0.5×	0.5×
P/S	0.1×	0.1×	0.1×	0.1×	0.1×
EV/EBITDA	5.3×	4.7×	2.0×	3.5×	3.9×
Dividend yield	0.7%	0.7%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Sajodaerim	—	0.4×	0.1×	4.8×	1.0%
Samyang Foods	18.4×	5.9×	3.3×	—	0.4%
Orion	10.5×	1.1×	1.2×	5.3×	3.1%
CJ Cheiljedang	—	0.3×	0.1×	—	3.5%
Nongshim	12.0×	0.8×	0.7×	—	1.5%
Otoki	16.9×	0.6×	0.3×	—	2.9%
Hite Jinro	23.0×	0.9×	0.4×	6.3×	4.5%
Similar companies (median)	16.9×	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: Sajodaerim / 사조대림 / 003960 / KRX:003960

Source: KRX statistical information