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SKC

011790 · KOSPI · ₩011790 · SKC

₩82,900▼ ₩300 (0.36%)End-of-day · Oct 28, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩3.1T
Equity value
−₩6.3T
WACC
7.5%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩82,900, the model needs an operating margin of 40.9% every year (it uses −8.2%).
  • Margins ranged from −16.6% to 13.7% 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.
  • 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.

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
—
Bull
—

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

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (−8.2%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-16.3% 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 (-16.3% a year, annual reports), fading to 3% by year 5.

Business

  • -8.2%

    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.

  • 32.5%

    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).

  • 40.6%

    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).

  • 26.1%

    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.

  • 0.96

    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 0.95, 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)
₩2.1T
Net debt (borrowings and leases − cash and deposits)
₩2.2T
+ Stakes and investments
₩165B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.2T
Shares
49,598,298
Share price
₩82,900
Market cap
₩4.1T

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₩1.6T₩1.7T₩1.8T₩1.9T₩1.7T₩1.7T₩1.7T₩1.7T
Growth−50.0%9.6%6.9%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩216B−₩277B−₩305B−₩153B−₩143B−₩138B−₩138B−₩142B
EBIT margin−13.8%−16.1%−16.6%−8.2%−8.2%−8.2%−8.2%−8.2%
After-tax EBIT−₩157B−₩201B−₩221B−₩111B−₩104B−₩100B−₩100B−₩103B
+ Depreciation———₩607B₩567B₩547B₩546B₩562B
− Capital spending₩1T₩677B₩289B₩759B₩708B₩683B₩682B₩702B
− Working capital₩45B−₩672B−₩69B−₩54B−₩33B−₩16B−₩878M₩13B
Free cash flow———−₩208B−₩212B−₩220B−₩235B−₩256B
Discount factor———0.9300.8650.8040.7470.695
Present value———−₩194B−₩183B−₩177B−₩176B−₩178B

Terminal value −₩3.1T, worth −₩2.1T today: 70% 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 ₩40,209 a share)Now 2.06×₩88,2852.20×₩144,7223.60×₩205,3605.11×

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%
6.5%—————
7.0%—————
7.5%—————
8.0%—————
8.5%—————

Now (TTM)

Market cap
₩4.1T
Enterprise value
₩6.2T
P/E
—
P/B
2.1×
P/S
2.0×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩98,134₩98,792₩85,162₩83,188₩164,027
Market cap₩4.9T₩4.9T₩4.2T₩4.1T₩8.1T
P/E————36.8×
P/B5.8×4.2×3.0×2.4×4.1×
P/S2.6×2.8×2.7×1.3×2.4×
EV/EBITDA———14.6×16.0×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SKC—2.1×2.0×—0.0%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
Hanwha6.3×0.4×0.1×—1.4%
KCC0.9×0.3×0.5×8.9×0.0%
Kumho Petro Chemical5.3×0.4×0.4×—1.6%
Soulbrain19.4×2.2×2.3×—0.7%
Similar companies (median)5.8×0.4×0.4×8.9×0.8%

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

Also known as: SKC / 011790 / KRX:011790

Source: KRX statistical information