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JIN Yang Pharmaceutical

007370 · KOSDAQ · ₩007370 · 진양제약

₩3,405▼ ₩50 (1.45%)End-of-day · Oct 30, 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

₩14,284

vs the current price (₩3,405)

Enterprise value
₩198B
Equity value
₩202B
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 320% 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 ₩3,405, the model needs an operating margin of 2.2% every year (it uses 8.5%).
  • Margins ranged from 2.1% to 14.6% 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.
  • 88% 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 2.1× against a typical 6.5× 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
₩8,094
+137.7%
Base
₩14,284
+319.5%
Bull
₩24,781
+627.8%

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 (8.5%).

Revenue growth

  • 16.5%

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

    Default: the last 3 years' revenue growth (16.5% a year, annual reports), fading to 3% by year 5.

  • 13.1%

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

    Default: the last 3 years' revenue growth (16.5% a year, annual reports), fading to 3% by year 5.

  • 9.8%

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

    Default: the last 3 years' revenue growth (16.5% a year, annual reports), fading to 3% by year 5.

  • 6.4%

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

    Default: the last 3 years' revenue growth (16.5% 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 (16.5% a year, annual reports), fading to 3% by year 5.

Business

  • 8.5%

    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.

  • 1.5%

    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).

  • 1.8%

    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).

  • 3.4%

    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.

  • 4.01%

    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 0.15, 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)
₩125B
Net debt (borrowings and leases − cash and deposits)
−₩3.9B
Shares
14,134,587
Share price
₩3,405
Market cap
₩48B

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₩94B₩113B₩121B₩145B₩164B₩180B₩192B₩198B
Growth23.4%20.4%6.5%16.5%13.1%9.8%6.4%3.0%
EBIT₩9.1B₩12B₩2.5B₩12B₩14B₩15B₩16B₩17B
EBIT margin9.7%10.3%2.1%8.5%8.5%8.5%8.5%8.5%
After-tax EBIT₩6.6B₩8.5B₩1.8B₩8.9B₩10B₩11B₩12B₩12B
+ Depreciation———₩2.2B₩2.5B₩2.7B₩2.9B₩3B
− Capital spending₩1.5B₩947M₩3.7B₩2.6B₩3B₩3.2B₩3.5B₩3.6B
− Working capital₩2.4B₩481M−₩72B₩699M₩647M₩547M₩392M₩196M
Free cash flow———₩7.8B₩9B₩10B₩11B₩11B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩7.3B₩7.8B₩8.1B₩8.2B₩8B

Terminal value ₩226B, worth ₩159B 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:

LowTypicalHigh
Price / book (book value ₩11,472 a share)Now 0.30×₩4,4430.39×₩10,0410.88×₩16,4691.44×
Price / earnings (last 12 months: ₩1,613 a share)Now 2.11×₩4,3242.68×₩10,4596.48×₩15,5169.62×
P/E on run-rate earnings (Q2 2026 × 4: ₩623 a share)Now 5.47×₩1,6692.68×₩4,0376.48×₩5,9909.62×

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%₩14,854₩16,099₩17,633₩19,569₩22,089
6.8%₩13,557₩14,566₩15,784₩17,285₩19,179
7.3%₩12,466₩13,297₩14,284₩15,477₩16,945
7.8%₩11,536₩12,230₩13,044₩14,010₩15,176
8.3%₩10,734₩11,321₩12,000₩12,796₩13,742

Now (TTM)

Market cap
₩48B
Enterprise value
₩44B
P/E
2.1×
P/B
0.3×
P/S
0.4×
EV/EBITDA
—
Dividend yield
4.4%

Over time (at each year end)

20252024202320222021
Price₩5,030₩5,820₩6,190₩6,520₩7,040
Market cap₩71B₩82B₩87B₩92B₩100B
P/E3.2×2.8×6.9×7.5×10.4×
P/B0.4×0.7×1.0×1.2×1.5×
P/S0.6×0.7×0.9×1.2×1.6×
EV/EBITDA—————
Dividend yield3.0%2.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
JIN Yang Pharmaceutical2.1×0.3×0.4×—4.4%
Samsung Biologics34.7×8.2×15.1×—0.0%
Celltrion28.2×2.5×9.1×—0.0%
Alteogen76.3×27.5×58.0×—0.1%
SK biopharmaceuticals15.2×6.0×7.1×—0.0%
Yuhan23.3×2.3×2.4×30.4×0.8%
HLB—15.5×54.7×—0.0%
Similar companies (median)28.2×7.1×12.1×30.4×0.0%

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

Also known as: JIN Yang Pharmaceutical / 진양제약 / 007370 / KRX:007370

Source: KRX statistical information