KOSPI · 005070 · Chemicals · ₩005070

Cosmo Advanced Materials & Technology코스모신소재

005070 · KOSPI · ₩005070 · 코스모신소재

₩38,450▼ ₩1,400 (3.51%)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

With these assumptions the model gives no positive value.

Enterprise value: ₩64B
Equity value: −₩14B
WACC: 8.5%

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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩38,450, the model needs an operating margin of 29.7% every year (it uses 4.4%).
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.

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: —
Bull: ₩4,631; −88.0%

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 (4.4%).

Revenue growth

Revenue growth, year 1-2.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 30.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2.1% 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 (-2.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.4%
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 & amortisation15.9%
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).
Capital spending19.9%
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 capital3.6%
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

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 rate4.01%
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.
Beta0.87
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 0.8, 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)5.51%
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): ₩483B
Net debt (borrowings and leases − cash and deposits): ₩89B
+ Stakes and investments: ₩11B; Associates, long-term financial assets and deposits (book value)
Shares: 33,214,571
Share price: ₩38,450
Market cap: ₩1.3T

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	₩630B	₩570B	₩456B	₩473B	₩469B	₩471B	₩479B	₩494B
Growth	29.6%	−9.5%	−19.9%	−2.1%	−0.8%	0.5%	1.7%	3.0%
EBIT	₩32B	₩25B	₩2.4B	₩21B	₩21B	₩21B	₩21B	₩22B
EBIT margin	5.1%	4.4%	0.5%	4.4%	4.4%	4.4%	4.4%	4.4%
After-tax EBIT	₩23B	₩18B	₩1.7B	₩15B	₩15B	₩15B	₩15B	₩16B
+ Depreciation	—	—	—	₩75B	₩75B	₩75B	₩76B	₩78B
− Capital spending	₩104B	₩188B	₩46B	₩94B	₩93B	₩94B	₩95B	₩98B
− Working capital	₩12B	−₩82B	−₩81B	−₩365M	−₩136M	₩84M	₩288M	₩517M
Free cash flow	—	—	—	−₩3.5B	−₩3.7B	−₩3.9B	−₩4.2B	−₩4.5B
Discount factor	—	—	—	0.922	0.850	0.783	0.722	0.666
Present value	—	—	—	−₩3.2B	−₩3.1B	−₩3.1B	−₩3B	−₩3B

Terminal value ₩119B, worth ₩79B today: 124% 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 ₩16,274 a share)Now 2.36×	₩41,4522.55×	₩114,7567.05×	₩331,16720.3×

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%
7.5%	—	—	₩119	₩392	₩726
8.0%	—	—	—	₩38	₩302
8.5%	—	—	—	—	—
9.0%	—	—	—	—	—
9.5%	—	—	—	—	—

Now (TTM)

Market cap: ₩1.3T
Enterprise value: ₩1.4T
P/E: —
P/B: 2.4×
P/S: 2.6×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩43,300	₩51,500	₩147,300	₩51,800	₩46,150
Market cap	₩1.4T	₩1.7T	₩4.9T	₩1.7T	₩1.5T
P/E	—	96.9×	181.0×	62.1×	85.2×
P/B	2.9×	3.5×	10.2×	6.8×	7.5×
P/S	3.2×	3.0×	7.8×	3.5×	5.0×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Cosmo Advanced Materials & Technology	—	2.4×	2.6×	—	0.0%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.5×	0.3×	—	0.0%
Hanwha	6.1×	0.4×	0.1×	—	1.4%
SKC	—	1.8×	1.7×	—	0.0%
KCC	0.9×	0.3×	0.5×	9.0×	0.0%
Kumho Petro Chemical	5.2×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.2×	0.4×	0.4×	9.0×	0.4%

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

Also known as: Cosmo Advanced Materials & Technology / 코스모신소재 / 005070 / KRX:005070

Source: KRX statistical information