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TP

007980 · KOSPI · ₩007980 · TP

₩1,609 ₩0 (0.00%)End-of-day · Oct 27, 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

₩17,914

vs the current price (₩1,609)

Enterprise value
₩1.2T
Equity value
₩840B
WACC
4.7%

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 1,013% 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 ₩1,609, the model needs an operating margin of 2.5% every year (it uses 5.3%).
  • Or revenue growth −28.2 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 2.1× against a typical 2.9× 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
₩1,813
+12.7%
Base
₩17,914
+1,013.4%
Bull
₩60,233
+3,643.5%

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 (5.3%).

Revenue growth

  • -1.7%

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

    Default: the last 3 years' revenue growth (-1.7% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-1.7% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.7% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.7% 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 (-1.7% a year, annual reports), fading to 3% by year 5.

Business

  • 5.3%

    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.

  • 1.7%

    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).

  • 2.4%

    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).

  • 22%

    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.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 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 0.12, 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.

  • 5.61%

    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)
₩1T
Net debt (borrowings and leases − cash and deposits)
₩353B
− Minority interests
₩249M
Shares
46,897,350
Share price
₩1,609
Market cap
₩75B

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₩920B₩1.1T₩1T₩1T₩1T₩1T₩1T₩1.1T
Growth−15.2%15.6%−3.3%−1.7%−0.6%0.6%1.8%3.0%
EBIT₩41B₩49B₩62B₩54B₩54B₩54B₩55B₩57B
EBIT margin4.4%4.6%6.0%5.3%5.3%5.3%5.3%5.3%
After-tax EBIT₩29B₩35B₩45B₩39B₩39B₩39B₩40B₩41B
+ Depreciation₩16B——₩17B₩17B₩17B₩18B₩18B
− Capital spending₩15B₩20B₩38B₩24B₩24B₩24B₩25B₩26B
− Working capital−₩16B₩10B₩17B−₩3.9B−₩1.3B₩1.3B₩4B₩6.8B
Free cash flow₩46B——₩36B₩33B₩31B₩29B₩27B
Discount factor———0.9560.9130.8720.8340.797
Present value———₩34B₩30B₩27B₩24B₩21B

Terminal value ₩1.3T, worth ₩1.1T today: 89% 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 ₩6,463 a share)Now 0.25×₩1,7320.27×₩2,3320.36×₩4,3150.67×
Price / earnings (last 12 months: ₩773 a share)Now 2.08×₩1,5602.02×₩2,2332.89×₩5,0116.48×
P/E on run-rate earnings (Q2 2026 × 4: ₩356 a share)Now 4.52×₩7182.02×₩1,0292.89×₩2,3086.48×

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%
3.7%₩20,463₩25,429₩33,383₩48,202₩85,592
4.2%₩15,961₩19,168₩23,854₩31,357₩45,336
4.7%₩12,692₩14,893₩17,914₩22,329₩29,397
5.2%₩10,212₩11,789₩13,859₩16,701₩20,853
5.7%₩8,267₩9,433₩10,914₩12,858₩15,526

Now (TTM)

Market cap
₩75B
Enterprise value
₩415B
P/E
2.1×
P/B
0.2×
P/S
0.1×
EV/EBITDA
—
Dividend yield
4.7%

Over time (at each year end)

20252024202320222021
Price₩1,886₩1,412₩2,175₩1,715₩2,275
Market cap₩88B₩66B₩102B₩80B₩107B
P/E2.3×3.0×16.9×3.2×—
P/B0.3×0.3×0.5×0.4×0.6×
P/S0.1×0.1×0.1×0.1×0.1×
EV/EBITDA——7.3×4.9×28.8×
Dividend yield4.0%3.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
TP2.1×0.2×0.1×—4.7%
F&F4.5×1.1×1.2×—4.4%
LF5.6×0.4×0.3×4.6×3.2%
Chokwang Leather44.5×0.7×4.9×59.3×0.0%
Handsome6.9×0.3×0.3×—0.0%
Hansae9.4×0.4×0.2×—0.0%
JS4.0×0.6×0.2×—5.3%
Similar companies (median)6.3×0.5×0.3×31.9×1.6%

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

Also known as: TP / 007980 / KRX:007980

Source: KRX statistical information