ISU Chemical이수화학
005950 · KOSPI · ₩005950 · 이수화학
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
- ₩206B
- Equity value
- −₩313B
- WACC
- 6.0%
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 gives no positive value at these assumptions. What we can see:
- To match today's price of ₩9,390, the model needs an operating margin of 2.7% every year (it uses 1.0%).
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
- ₩29,406
- +213.2%
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 (1.0%).
Revenue growth
- -9.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.1% a year, annual reports), fading to 3% by year 5.
- -6.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.1% 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 (-9.1% a year, annual reports), fading to 3% by year 5.
- -0%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.1% 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 (-9.1% a year, annual reports), fading to 3% by year 5.
Business
- 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).
- 11.4%
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.
- 0.76
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 0.65, 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)
- ₩2.3T
- Net debt (borrowings and leases − cash and deposits)
- ₩294B
- + Stakes and investments
- ₩4.6B
- Associates, long-term financial assets and deposits (book value)
- − Minority interests
- ₩229B
- Shares
- 26,294,169
- Share price
- ₩9,390
- Market cap
- ₩247B
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 | ₩2T | ₩1.9T | ₩1.7T | ₩2.1T | ₩2T | ₩1.9T | ₩1.9T | ₩2T |
| Growth | −9.6% | −4.0% | −13.4% | −9.1% | −6.1% | −3.0% | 0.0% | 3.0% |
| EBIT | −₩56B | −₩51B | ₩6.9B | ₩21B | ₩20B | ₩19B | ₩19B | ₩20B |
| EBIT margin | −2.8% | −2.7% | 0.4% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% |
| After-tax EBIT | −₩41B | −₩37B | ₩5B | ₩15B | ₩14B | ₩14B | ₩14B | ₩14B |
| + Depreciation | — | — | — | ₩29B | ₩27B | ₩27B | ₩27B | ₩27B |
| − Capital spending | ₩42B | ₩27B | ₩28B | ₩36B | ₩33B | ₩32B | ₩32B | ₩33B |
| − Working capital | −₩6.3B | −₩39B | −₩2.7B | −₩24B | −₩15B | −₩6.7B | ₩0 | ₩6.5B |
| Free cash flow | — | — | — | ₩33B | ₩23B | ₩15B | ₩8.1B | ₩1.8B |
| Discount factor | — | — | — | 0.944 | 0.891 | 0.840 | 0.793 | 0.748 |
| Present value | — | — | — | ₩31B | ₩20B | ₩12B | ₩6.4B | ₩1.4B |
Terminal value ₩180B, worth ₩135B today: 65% 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 ₩7,173 a share)Now 1.31× | ₩5,1010.71× | ₩10,8691.52× | ₩20,1002.80× |
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% |
|---|---|---|---|---|---|
| 5.0% | — | — | — | — | — |
| 5.5% | — | — | — | — | — |
| 6.0% | — | — | — | — | — |
| 6.5% | — | — | — | — | — |
| 7.0% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩247B
- Enterprise value
- ₩521B
- P/E
- 2.9×
- P/B
- 1.3×
- P/S
- 0.1×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩8,260 | ₩6,100 | ₩13,670 | ₩9,100 | ₩7,275 |
| Market cap | ₩217B | ₩160B | ₩359B | ₩239B | ₩191B |
| P/E | — | — | — | 8.6× | 2.0× |
| P/B | 2.3× | 1.5× | 2.3× | 0.8× | 0.7× |
| P/S | 0.1× | 0.1× | 0.2× | 0.1× | 0.1× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | — | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| ISU Chemical | 2.9× | 1.3× | 0.1× | — | 0.0% |
| LG Chem | — | 0.5× | 0.3× | — | 0.8% |
| Hanwha Solutions | — | 0.6× | 0.4× | — | 0.0% |
| Hanwha | 6.3× | 0.4× | 0.1× | — | 1.4% |
| SKC | — | 2.1× | 2.0× | — | 0.0% |
| KCC | 0.9× | 0.3× | 0.5× | 8.9× | 0.0% |
| Kumho Petro Chemical | 5.3× | 0.4× | 0.4× | — | 1.6% |
| Similar companies (median) | 5.3× | 0.4× | 0.4× | 8.9× | 0.4% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: ISU Chemical / 이수화학 / 005950 / KRX:005950
Source: KRX statistical information