KOSPI · 007160 · Food & Beverage · ₩007160

Sajo Industries사조산업

007160 · KOSPI · ₩007160 · 사조산업

₩40,850▼ ₩1,650 (3.88%)End-of-day · Oct 30, 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

₩94,117

vs the current price (₩40,850)

Enterprise value: ₩619B
Equity value: ₩471B
WACC: 5.2%

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 130% 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 ₩40,850, the model needs an operating margin of 2.3% every year (it uses 3.9%).
Or revenue growth −12.0 points a year higher than assumed in each of the 5 years.
Margins ranged from −3.8% to 8.3% 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: ₩10,120; −75.2%
Base: ₩94,117; +130.4%
Bull: ₩283,911; +595.0%

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 (3.9%).

Revenue growth

Revenue growth, year 12.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 22.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 32.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.2% 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 (2.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.9%
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 & amortisation3.3%
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).
Capital spending2.3%
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 capital-0.2%
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.
Beta0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.14, 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): ₩705B
Net debt (borrowings and leases − cash and deposits): ₩354B
+ Stakes and investments: ₩298B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩93B
Shares: 5,000,000
Share price: ₩40,850
Market cap: ₩204B

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	₩632B	₩635B	₩706B	₩720B	₩738B	₩757B	₩778B	₩801B
Growth	−4.3%	0.5%	11.2%	2.2%	2.4%	2.6%	2.8%	3.0%
EBIT	−₩24B	−₩9.4B	₩33B	₩28B	₩29B	₩30B	₩30B	₩31B
EBIT margin	−3.8%	−1.5%	4.7%	3.9%	3.9%	3.9%	3.9%	3.9%
After-tax EBIT	−₩17B	−₩6.8B	₩24B	₩20B	₩21B	₩21B	₩22B	₩23B
+ Depreciation	₩20B	₩22B	₩23B	₩24B	₩24B	₩25B	₩26B	₩26B
− Capital spending	₩16B	₩16B	₩13B	₩17B	₩17B	₩17B	₩18B	₩18B
− Working capital	−₩17B	−₩299B	₩304B	−₩31M	−₩35M	−₩38M	−₩42M	−₩47M
Free cash flow	₩3.5B	₩299B	−₩271B	₩28B	₩28B	₩29B	₩30B	₩31B
Discount factor	—	—	—	0.951	0.903	0.859	0.816	0.776
Present value	—	—	—	₩26B	₩26B	₩25B	₩24B	₩24B

Terminal value ₩637B, worth ₩495B today: 80% 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 ₩98,875 a share)Now 0.41×	₩34,1550.35×	₩43,0640.44×	₩54,0500.55×

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%
4.2%	₩98,571	₩118,178	₩146,669	₩191,848	₩274,450
4.7%	₩82,266	₩96,318	₩115,561	₩143,523	₩187,863
5.2%	₩69,811	₩80,324	₩94,117	₩113,004	₩140,449
5.7%	₩59,979	₩68,107	₩78,427	₩91,966	₩110,505
6.2%	₩52,015	₩58,462	₩66,441	₩76,572	₩89,863

Now (TTM)

Market cap: ₩204B
Enterprise value: ₩550B
P/E: —
P/B: 0.4×
P/S: 0.3×
EV/EBITDA: 10.7×
Dividend yield: 0.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩54,100	₩34,850	₩42,000	₩45,000	₩47,350
Market cap	₩271B	₩174B	₩210B	₩225B	₩237B
P/E	—	37.7×	10.9×	3.3×	5.3×
P/B	0.5×	0.3×	0.4×	0.4×	0.5×
P/S	0.4×	0.3×	0.3×	0.3×	0.4×
EV/EBITDA	11.4×	14.6×	—	6.5×	6.7×
Dividend yield	0.4%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Sajo Industries	—	0.4×	0.3×	10.7×	0.5%
Samyang Foods	17.6×	5.6×	3.1×	—	0.4%
Orion	10.8×	1.1×	1.3×	5.4×	3.0%
CJ Cheiljedang	—	0.3×	0.1×	—	3.5%
Nongshim	12.3×	0.8×	0.7×	—	1.5%
Otoki	17.4×	0.6×	0.3×	—	2.8%
Hite Jinro	23.7×	1.0×	0.5×	6.4×	4.4%
Similar companies (median)	17.4×	0.9×	0.6×	5.9×	2.9%

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

Also known as: Sajo Industries / 사조산업 / 007160 / KRX:007160

Source: KRX statistical information