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Pyung Hwa Holdings

010770 · KOSPI · ₩010770 · 평화홀딩스

₩3,195▼ ₩90 (2.74%)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

₩25,886

vs the current price (₩3,195)

Enterprise value
₩582B
Equity value
₩379B
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 710% 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 ₩3,195, the model needs an operating margin of 1.5% every year (it uses 2.7%).
  • Or revenue growth −21.5 points a year higher than assumed in each of the 5 years.
  • 34% 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 1.0× 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
—
Base
₩25,886
+710.2%
Bull
₩125,467
+3,827.0%

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 (2.7%).

Revenue growth

  • 6.1%

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

    Default: the last 3 years' revenue growth (6.1% a year, annual reports), fading to 3% by year 5.

  • 5.3%

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

    Default: the last 3 years' revenue growth (6.1% a year, annual reports), fading to 3% by year 5.

  • 4.5%

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

    Default: the last 3 years' revenue growth (6.1% a year, annual reports), fading to 3% by year 5.

  • 3.8%

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

    Default: the last 3 years' revenue growth (6.1% 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 (6.1% a year, annual reports), fading to 3% by year 5.

Business

  • 2.7%

    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.

  • 1.7%

    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).

  • 2.1%

    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).

  • 9.4%

    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 -0.23, 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)
₩901B
Net debt (borrowings and leases − cash and deposits)
₩159B
+ Stakes and investments
₩177M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩45B
Shares
14,625,466
Share price
₩3,195
Market cap
₩47B

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₩797B₩835B₩884B₩956B₩1T₩1.1T₩1.1T₩1.1T
Growth7.7%4.8%5.8%6.1%5.3%4.5%3.8%3.0%
EBIT₩17B₩29B₩35B₩26B₩27B₩28B₩29B₩30B
EBIT margin2.1%3.4%3.9%2.7%2.7%2.7%2.7%2.7%
After-tax EBIT₩12B₩21B₩25B₩19B₩20B₩21B₩21B₩22B
+ Depreciation———₩16B₩17B₩18B₩19B₩19B
− Capital spending₩15B₩16B₩22B₩20B₩21B₩22B₩23B₩24B
− Working capital−₩42B−₩9.9B₩4.5B₩5.2B₩4.8B₩4.3B₩3.8B₩3.1B
Free cash flow———₩9.7B₩11B₩12B₩13B₩14B
Discount factor———0.9550.9110.8700.8310.793
Present value———₩9.3B₩10B₩11B₩11B₩11B

Terminal value ₩668B, worth ₩530B today: 91% 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 ₩9,789 a share)Now 0.33×₩3,7430.38×₩4,8650.50×₩7,8330.80×
Price / earnings (last 12 months: ₩3,137 a share)Now 1.02×₩3,8791.24×₩9,1472.92×₩153,73249.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,132 a share)Now 1.50×₩2,6361.24×₩6,2172.92×₩104,48549.0×

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%₩29,612₩37,353₩49,504₩71,365₩122,401
4.2%₩22,626₩27,719₩35,065₩46,595₩67,338
4.7%₩17,510₩21,058₩25,886₩32,849₩43,779
5.2%₩13,604₩16,179₩19,539₩24,111₩30,704
5.7%₩10,525₩12,454₩14,890₩18,068₩22,392

Now (TTM)

Market cap
₩47B
Enterprise value
₩205B
P/E
1.0×
P/B
0.3×
P/S
0.1×
EV/EBITDA
—
Dividend yield
4.7%

Over time (at each year end)

20252024202320222021
Price₩3,790₩2,525₩3,225₩3,750₩4,460
Market cap₩55B₩37B₩47B₩55B₩65B
P/E1.6×23.7×5.8×——
P/B0.4×0.4×0.5×0.5×0.7×
P/S0.1×0.0×0.1×0.1×0.1×
EV/EBITDA—————
Dividend yield4.0%5.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Pyung Hwa Holdings1.0×0.3×0.1×—4.7%
Hyundai Mobis8.3×0.6×0.5×—1.9%
SL5.9×0.8×0.4×3.6×0.0%
HL Mando10.3×0.6×0.2×—2.0%
Hyundai WIA18.9×0.4×0.2×—2.4%
Samhyun—11.2×15.8×—0.0%
SNT Dynamics12.5×0.7×0.8×—7.3%
Similar companies (median)10.3×0.6×0.4×3.6×2.0%

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

Also known as: Pyung Hwa Holdings / 평화홀딩스 / 010770 / KRX:010770

Source: KRX statistical information