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Shinyoung Wacoal

005800 · KOSPI · ₩005800 · 신영와코루

₩13,100▼ ₩80 (0.61%)End-of-day · Oct 28, 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

₩7,687

vs the current price (₩13,100)

Enterprise value
₩8.7B
Equity value
₩69B
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 41% 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 ₩13,100, the model needs an operating margin of 3.4% every year (it uses 1.3%).
  • 100% 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 72.4× against a typical 16.9× 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
₩4,671
−64.3%
Base
₩7,687
−41.3%
Bull
₩14,037
+7.2%

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 (1.3%).

Revenue growth

  • -2.8%

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

    Default: the last 3 years' revenue growth (-2.8% a year, annual reports), fading to 3% by year 5.

  • -1.3%

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

    Default: the last 3 years' revenue growth (-2.8% a year, annual reports), fading to 3% by year 5.

  • 0.1%

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

    Default: the last 3 years' revenue growth (-2.8% a year, annual reports), fading to 3% by year 5.

  • 1.6%

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

    Default: the last 3 years' revenue growth (-2.8% 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 (-2.8% a year, annual reports), fading to 3% by year 5.

Business

  • 1.3%

    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.

  • 0.5%

    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).

  • 0.6%

    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).

  • 40%

    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 0.08, 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.

  • 5.58%

    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)
₩185B
Net debt (borrowings and leases − cash and deposits)
−₩410M
+ Stakes and investments
₩60B
Associates, long-term financial assets and deposits (book value)
Shares
9,000,000
Share price
₩13,100
Market cap
₩118B

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₩203B₩197B₩185B₩179B₩177B₩177B₩180B₩186B
Growth0.7%−3.0%−5.9%−2.8%−1.3%0.1%1.6%3.0%
EBIT₩2.2B₩2.8B₩1.3B₩2.3B₩2.3B₩2.3B₩2.3B₩2.4B
EBIT margin1.1%1.4%0.7%1.3%1.3%1.3%1.3%1.3%
After-tax EBIT₩1.6B₩2B₩935M₩1.7B₩1.7B₩1.7B₩1.7B₩1.7B
+ Depreciation———₩897M₩886M₩887M₩901M₩928M
− Capital spending₩100M₩140M₩3.3B₩1.1B₩1.1B₩1.1B₩1.1B₩1.1B
− Working capital−₩24B₩27B₩2.4B−₩2.1B−₩933M₩71M₩1.1B₩2.2B
Free cash flow———₩3.6B₩2.4B₩1.4B₩383M−₩598M
Discount factor———0.9310.8670.8080.7520.700
Present value———₩3.3B₩2.1B₩1.1B₩288M−₩419M

Terminal value ₩3.3B, worth ₩2.3B today: 26% 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 ₩43,039 a share)Now 0.30×₩9,6780.22×₩13,1000.30×₩15,3530.36×
Price / earnings (last 12 months: ₩181 a share)Now 72.4×₩7344.05×₩3,06016.9×₩5,51330.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩92 a share)Now 142.8×₩3724.05×₩1,55116.9×₩2,79430.5×

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%₩8,843₩8,365₩7,770₩7,015₩6,027
6.9%₩8,689₩8,255₩7,725₩7,067₩6,233
7.4%₩8,560₩8,163₩7,687₩7,108₩6,390
7.9%₩8,449₩8,085₩7,655₩7,140₩6,513
8.4%₩8,353₩8,018₩7,628₩7,165₩6,612

Now (TTM)

Market cap
₩118B
Enterprise value
₩117B
P/E
72.4×
P/B
0.3×
P/S
0.6×
EV/EBITDA
—
Dividend yield
1.3%

Over time (at each year end)

20252024202320222021
Price₩16,500₩9,140₩9,440₩11,150₩11,849
Market cap₩149B₩82B₩85B₩100B₩107B
P/E23.7×21.1×17.0×4.3×16.4×
P/B0.4×0.2×0.2×0.3×0.3×
P/S0.8×0.4×0.4×0.5×0.6×
EV/EBITDA—————
Dividend yield1.1%1.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Shinyoung Wacoal72.4×0.3×0.6×—1.3%
F&F4.5×1.1×1.2×—4.4%
LF5.5×0.4×0.3×4.5×3.3%
Chokwang Leather43.6×0.7×4.8×57.9×0.0%
Handsome7.1×0.3×0.3×—0.0%
Hansae9.4×0.4×0.2×—0.0%
JS4.0×0.6×0.2×—5.3%
Similar companies (median)6.3×0.5×0.3×31.2×1.6%

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

Also known as: Shinyoung Wacoal / 신영와코루 / 005800 / KRX:005800

Source: KRX statistical information