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Dongbang Agro

007590 · KOSPI · ₩007590 · 동방아그로

₩5,330▼ ₩20 (0.37%)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

₩13,686

vs the current price (₩5,330)

Enterprise value
₩217B
Equity value
₩186B
WACC
6.3%

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 157% 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 ₩5,330, the model needs an operating margin of 3.9% every year (it uses 7.0%).
  • Today's P/E is 7.9× against a typical 8.7× 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
₩6,103
+14.5%
Base
₩13,686
+156.8%
Bull
₩28,293
+430.8%

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 (7.0%).

Revenue growth

  • 6.9%

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

    Default: the last 3 years' revenue growth (6.9% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (6.9% a year, annual reports), fading to 3% by year 5.

  • 4.9%

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

    Default: the last 3 years' revenue growth (6.9% a year, annual reports), fading to 3% by year 5.

  • 4%

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

    Default: the last 3 years' revenue growth (6.9% 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 (6.9% a year, annual reports), fading to 3% by year 5.

Business

  • 7%

    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.

  • 2.3%

    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).

  • 0%

    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 0.04, 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)
₩187B
Net debt (borrowings and leases − cash and deposits)
₩30B
− Minority interests
₩635M
Shares
13,617,577
Share price
₩5,330
Market cap
₩73B

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₩164B₩170B₩179B₩200B₩212B₩223B₩231B₩238B
Growth12.0%3.6%5.1%6.9%5.9%4.9%4.0%3.0%
EBIT₩14B₩15B₩13B₩14B₩15B₩16B₩16B₩17B
EBIT margin8.3%8.6%7.1%7.0%7.0%7.0%7.0%7.0%
After-tax EBIT₩9.9B₩11B₩9.2B₩10B₩11B₩11B₩12B₩12B
+ Depreciation₩3.7B₩4B₩4.1B₩4.6B₩4.9B₩5.1B₩5.3B₩5.5B
− Capital spending₩0₩0₩26M₩0₩0₩0₩0₩0
− Working capital₩13B₩14B₩6.3B₩5.2B₩4.7B₩4.2B₩3.6B₩2.8B
Free cash flow₩551M₩886M₩7B₩9.6B₩11B₩12B₩14B₩15B
Discount factor———0.9400.8840.8320.7820.735
Present value———₩9B₩9.7B₩10B₩11B₩11B

Terminal value ₩227B, worth ₩167B today: 77% 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 ₩13,516 a share)Now 0.39×₩6,1510.46×₩6,8580.51×₩8,3880.62×
Price / earnings (last 12 months: ₩671 a share)Now 7.94×₩4,7317.05×₩5,8078.65×₩9,36013.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩531 a share)Now 10.0×₩3,7457.05×₩4,5968.65×₩7,40813.9×

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%
5.3%₩15,520₩16,705₩18,236₩20,298₩23,232
5.8%₩13,727₩14,588₩15,666₩17,060₩18,936
6.3%₩12,268₩12,906₩13,686₩14,662₩15,923
6.8%₩11,058₩11,538₩12,112₩12,813₩13,690
7.3%₩10,037₩10,402₩10,831₩11,343₩11,968

Now (TTM)

Market cap
₩73B
Enterprise value
₩101B
P/E
7.9×
P/B
0.4×
P/S
0.4×
EV/EBITDA
6.5×
Dividend yield
6.0%

Over time (at each year end)

20252024202320222021
Price₩6,000₩6,180₩6,360₩6,310₩7,270
Market cap₩82B₩84B₩87B₩86B₩99B
P/E8.4×8.6×7.1×12.7×14.2×
P/B0.5×0.5×0.5×0.6×0.7×
P/S0.5×0.5×0.5×0.6×0.7×
EV/EBITDA2.5×2.5×2.4×2.9×3.9×
Dividend yield5.3%4.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dongbang Agro7.9×0.4×0.4×6.5×6.0%
LG Chem—0.5×0.3×—0.9%
Hanwha Solutions—0.5×0.3×—0.0%
Hanwha5.9×0.4×0.1×—1.5%
SKC—1.8×1.7×—0.0%
KCC0.9×0.3×0.5×8.9×0.0%
Kumho Petro Chemical5.3×0.4×0.4×—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: Dongbang Agro / 동방아그로 / 007590 / KRX:007590

Source: KRX statistical information