KOSPI · 007570 · Biotech & Pharma · ₩007570

Ilyang Pharmaceutical일양약품

007570 · KOSPI · ₩007570 · 일양약품

₩6,990▼ ₩100 (1.41%)End-of-day · Oct 27, 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

₩2,546

vs the current price (₩6,990)

Enterprise value: ₩144B
Equity value: ₩50B
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 is 64% 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 ₩6,990, the model needs an operating margin of 6.1% every year (it uses 4.5%).
Or revenue growth +13.6 points a year higher than assumed in each of the 5 years.
Margins ranged from 1.8% to 11.0% 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.
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.
In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
Today's P/E is 7.9× against a typical 23.6× 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: —
Base: ₩2,546; −63.6%
Bull: ₩15,394; +120.2%

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 (4.5%).

Revenue growth

Revenue growth, year 13.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 23.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 33.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (3.2% 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 (3.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.5%
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.
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 & amortisation3.7%
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 spending7.2%
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 capital19.3%
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 rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
Beta0.6
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 0.11, 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)5.53%
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): ₩278B
Net debt (borrowings and leases − cash and deposits): ₩91B
− Minority interests: ₩3.5B
Shares: 19,530,744; incl. 445,080 preferred
Share price: ₩6,990
Market cap: ₩137B

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	₩267B	₩269B	₩272B	₩287B	₩296B	₩305B	₩315B	₩324B
Growth	7.6%	0.8%	1.3%	3.2%	3.2%	3.1%	3.1%	3.0%
EBIT	₩16B	₩11B	₩5B	₩13B	₩13B	₩14B	₩14B	₩15B
EBIT margin	6.1%	4.1%	1.8%	4.5%	4.5%	4.5%	4.5%	4.5%
After-tax EBIT	₩12B	₩8B	₩3.6B	₩9.4B	₩9.7B	₩10B	₩10B	₩11B
+ Depreciation	₩12B	₩9.8B	₩8.3B	₩11B	₩11B	₩11B	₩12B	₩12B
− Capital spending	₩6.8B	₩41B	₩10B	₩21B	₩21B	₩22B	₩23B	₩23B
− Working capital	₩9.9B	₩9.9B	−₩4.2B	₩1.7B	₩1.8B	₩1.8B	₩1.8B	₩1.8B
Free cash flow	₩7.2B	−₩33B	₩5.7B	−₩2.4B	−₩2.5B	−₩2.5B	−₩2.6B	−₩2.6B
Discount factor	—	—	—	0.943	0.890	0.840	0.792	0.747
Present value	—	—	—	−₩2.3B	−₩2.2B	−₩2.1B	−₩2B	−₩1.9B

Terminal value ₩207B, worth ₩155B today: 107% 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 ₩12,975 a share)Now 0.54×	₩11,7690.91×	₩16,4841.27×	₩25,9242.00×
Price / earnings (last 12 months: ₩885 a share)Now 7.89×	₩8,0209.06×	₩20,88523.6×	₩36,44941.2×

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%	₩3,466	₩4,415	₩5,676	₩7,435	₩10,066
5.5%	₩2,307	₩2,998	₩3,883	₩5,059	₩6,700
6.0%	₩1,385	₩1,902	₩2,546	₩3,369	₩4,463
6.5%	₩636	₩1,031	₩1,511	₩2,108	₩2,871
7.0%	₩17	₩323	₩688	₩1,132	₩1,684

Now (TTM)

Market cap: ₩133B
Enterprise value: ₩224B
P/E: 7.7×
P/B: 0.5×
P/S: 0.5×
EV/EBITDA: —
Dividend yield: 2.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩14,599	₩12,765	₩17,508	₩21,647	₩31,380
Market cap	₩279B	₩244B	₩334B	₩413B	₩599B
P/E	40.4×	23.8×	—	21.3×	41.6×
P/B	1.2×	1.0×	1.5×	1.7×	2.2×
P/S	1.0×	0.9×	1.3×	1.7×	1.6×
EV/EBITDA	28.6×	15.9×	14.0×	18.3×	12.1×
Dividend yield	1.2%	1.3%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Ilyang Pharmaceutical	7.7×	0.5×	0.5×	—	2.5%
Samsung Biologics	32.1×	7.6×	14.0×	—	0.0%
Celltrion	27.8×	2.4×	8.9×	—	0.0%
Alteogen	78.8×	28.4×	59.9×	—	0.1%
Yuhan	24.8×	2.5×	2.6×	32.5×	0.8%
SK biopharmaceuticals	14.6×	5.7×	6.8×	—	0.0%
HLB	—	15.4×	54.6×	—	0.0%
Similar companies (median)	27.8×	6.7×	11.5×	32.5×	0.0%

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

Also known as: Ilyang Pharmaceutical / 일양약품 / 007570 / KRX:007570

Source: KRX statistical information