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PharmGen Science

004720 · KOSPI · ₩004720 · 팜젠사이언스

₩2,750▲ ₩10 (0.36%)End-of-day · Oct 29, 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

₩5,345

vs the current price (₩2,750)

Enterprise value
₩80B
Equity value
₩121B
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 94% 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 ₩2,750, the model needs an operating margin of 1.9% every year (it uses 4.1%).
  • Margins ranged from −4.5% to 6.2% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.

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
₩2,894
+5.2%
Base
₩5,345
+94.4%
Bull
₩9,825
+257.3%

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 (4.1%).

Revenue growth

  • 4.7%

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

    Default: the last 3 years' revenue growth (4.7% a year, annual reports), fading to 3% by year 5.

  • 4.3%

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

    Default: the last 3 years' revenue growth (4.7% a year, annual reports), fading to 3% by year 5.

  • 3.8%

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

    Default: the last 3 years' revenue growth (4.7% a year, annual reports), fading to 3% by year 5.

  • 3.4%

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

    Default: the last 3 years' revenue growth (4.7% 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 (4.7% a year, annual reports), fading to 3% by year 5.

Business

  • 4.1%

    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.

  • 1.4%

    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).

  • 1.7%

    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).

  • 23.9%

    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.

  • 4.08%

    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.

  • 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 -0.04, 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.

  • 5.58%

    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)
₩175B
Net debt (borrowings and leases − cash and deposits)
−₩19B
+ Stakes and investments
₩21B
Associates, long-term financial assets and deposits (book value)
Shares
22,654,365
Share price
₩2,750
Market cap
₩62B

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₩167B₩171B₩173B₩184B₩191B₩199B₩206B₩212B
Growth10.5%2.7%1.0%4.7%4.3%3.8%3.4%3.0%
EBIT₩9.1B₩11B₩6B₩7.5B₩7.9B₩8.1B₩8.4B₩8.7B
EBIT margin5.5%6.2%3.5%4.1%4.1%4.1%4.1%4.1%
After-tax EBIT₩6.6B₩7.7B₩4.3B₩5.5B₩5.7B₩5.9B₩6.1B₩6.3B
+ Depreciation———₩2.6B₩2.7B₩2.8B₩2.9B₩3B
− Capital spending₩3.3B₩2.8B₩2.7B₩3.1B₩3.3B₩3.4B₩3.5B₩3.6B
− Working capital₩10B₩13B₩366M₩2B₩1.9B₩1.7B₩1.6B₩1.5B
Free cash flow———₩2.9B₩3.2B₩3.6B₩3.9B₩4.2B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩2.7B₩2.8B₩2.9B₩2.9B₩2.9B

Terminal value ₩94B, worth ₩66B today: 82% 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 ₩6,182 a share)Now 0.44×₩2,5170.41×₩6,5571.06×₩14,5152.35×

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%₩5,781₩5,971₩6,202₩6,491₩6,863
6.9%₩5,417₩5,560₩5,730₩5,937₩6,195
7.4%₩5,111₩5,219₩5,345₩5,496₩5,680
7.9%₩4,850₩4,932₩5,027₩5,138₩5,270
8.4%₩4,624₩4,687₩4,759₩4,841₩4,937

Now (TTM)

Market cap
₩62B
Enterprise value
₩42B
P/E
—
P/B
0.4×
P/S
0.4×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,155₩4,090₩6,200₩6,680₩10,500
Market cap₩94B₩93B₩140B₩151B₩238B
P/E—13.2×9.0×123.4×—
P/B0.6×0.8×1.2×1.8×3.1×
P/S0.5×0.5×0.8×1.0×2.2×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
PharmGen Science—0.4×0.4×—0.0%
Samsung Biologics31.9×7.6×13.9×—0.0%
Celltrion27.9×2.5×9.0×—0.0%
Alteogen79.4×28.6×60.3×—0.1%
SK biopharmaceuticals15.2×6.0×7.1×—0.0%
Yuhan23.2×2.3×2.4×30.2×0.8%
HLB—15.4×54.3×—0.0%
Similar companies (median)27.9×6.8×11.4×30.2×0.0%

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

Also known as: PharmGen Science / 팜젠사이언스 / 004720 / KRX:004720

Source: KRX statistical information