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Wonlim

005820 · KOSPI · ₩005820 · 원림

₩13,820▲ ₩120 (0.88%)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

₩32,421

vs the current price (₩13,820)

Enterprise value
₩46B
Equity value
₩75B
WACC
7.3%

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 135% 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 ₩13,820, the model needs an operating margin of 1.4% every year (it uses 4.6%).
  • Today's P/E is 6.9× against a typical 8.0× 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
₩20,659
+49.5%
Base
₩32,421
+134.6%
Bull
₩54,366
+293.4%

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 (4.6%).

Revenue growth

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.1% 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 (3.1% 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 (3.1% 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 (3.1% 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 (3.1% a year, annual reports), fading to 3% by year 5.

Business

  • 4.6%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 2.2%

    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).

  • 1.1%

    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.

  • 4.01%

    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 0.17, 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)
₩91B
Net debt (borrowings and leases − cash and deposits)
−₩19B
+ Stakes and investments
₩42B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩33B
Shares
2,297,970
Share price
₩13,820
Market cap
₩32B

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₩84B₩82B₩90B₩94B₩97B₩100B₩103B₩106B
Growth3.0%−2.4%8.9%3.1%3.0%3.0%3.0%3.0%
EBIT₩5.1B₩1.7B₩4.4B₩4.3B₩4.5B₩4.6B₩4.7B₩4.9B
EBIT margin6.0%2.1%4.9%4.6%4.6%4.6%4.6%4.6%
After-tax EBIT₩3.7B₩1.3B₩3.2B₩3.1B₩3.2B₩3.3B₩3.4B₩3.5B
+ Depreciation₩1.9B₩1.9B₩1.8B₩2.1B₩2.1B₩2.2B₩2.3B₩2.3B
− Capital spending₩309M₩1.3B₩1.2B₩1B₩1.1B₩1.1B₩1.1B₩1.2B
− Working capital₩16B−₩7.9B−₩17B₩1.1B₩1.1B₩1.2B₩1.2B₩1.2B
Free cash flow−₩11B₩9.8B₩20B₩3B₩3.2B₩3.3B₩3.4B₩3.5B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩2.8B₩2.8B₩2.6B₩2.5B₩2.4B

Terminal value ₩47B, worth ₩33B today: 72% 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 ₩55,788 a share)Now 0.25×₩14,5120.26×₩19,5980.35×₩26,4080.47×
Price / earnings (last 12 months: ₩1,998 a share)Now 6.92×₩10,3865.20×₩16,0798.05×₩27,63513.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,515 a share)Now 5.50×₩13,0695.20×₩20,2338.05×₩34,77713.8×

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%
6.3%₩35,714₩36,202₩36,786₩37,507₩38,424
6.8%₩33,748₩34,040₩34,379₩34,781₩35,271
7.3%₩32,092₩32,248₩32,421₩32,617₩32,843
7.8%₩30,677₩30,737₩30,797₩30,856₩30,914
8.3%₩29,455₩29,447₩29,428₩29,394₩29,343

Now (TTM)

Market cap
₩32B
Enterprise value
₩13B
P/E
6.9×
P/B
0.2×
P/S
0.3×
EV/EBITDA
1.9×
Dividend yield
3.3%

Over time (at each year end)

20252024202320222021
Price₩14,900₩12,600₩18,650₩20,550₩19,300
Market cap₩34B₩29B₩43B₩47B₩44B
P/E9.2×7.2×5.8×6.6×31.5×
P/B0.3×0.2×0.4×0.4×0.4×
P/S0.4×0.4×0.5×0.6×0.6×
EV/EBITDA1.8×5.0×5.0×8.8×9.0×
Dividend yield3.1%3.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Wonlim6.9×0.2×0.3×1.9×3.3%
F&F4.5×1.1×1.2×—4.4%
LF5.6×0.4×0.3×4.6×3.2%
Chokwang Leather43.6×0.7×4.8×57.9×0.0%
Handsome7.2×0.3×0.3×—0.0%
JS4.2×0.6×0.2×—5.1%
Hansae9.3×0.4×0.2×—0.0%
Similar companies (median)6.4×0.5×0.3×31.2×1.6%

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

Also known as: Wonlim / 원림 / 005820 / KRX:005820

Source: KRX statistical information