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Hwaseung

013520 · KOSPI · ₩013520 · 화승코퍼레이션

₩2,395▲ ₩20 (0.84%)End-of-day · Oct 29, 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

₩23,509

vs the current price (₩2,395)

Enterprise value
₩1.7T
Equity value
₩1.2T
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 882% 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 ₩2,395, the model needs an operating margin of 1.9% every year (it uses 4.3%).
  • Or revenue growth −18.4 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 1.6× against a typical 4.1× 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
₩23,509
+881.6%
Bull
₩83,022
+3,366.5%

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 (4.3%).

Revenue growth

  • 1.1%

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

    Default: the last 3 years' revenue growth (1.1% a year, annual reports), fading to 3% by year 5.

  • 1.6%

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

    Default: the last 3 years' revenue growth (1.1% a year, annual reports), fading to 3% by year 5.

  • 2.1%

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

    Default: the last 3 years' revenue growth (1.1% a year, annual reports), fading to 3% by year 5.

  • 2.5%

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

    Default: the last 3 years' revenue growth (1.1% 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 (1.1% a year, annual reports), fading to 3% by year 5.

Business

  • 4.3%

    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.

  • 2.9%

    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).

  • 3.3%

    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).

  • -1.9%

    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 0.4, 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)
₩1.6T
Net debt (borrowings and leases − cash and deposits)
₩409B
+ Stakes and investments
₩23B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩152B
Shares
50,051,252
Share price
₩2,395
Market cap
₩120B

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₩1.6T₩1.6T₩1.7T₩1.7T₩1.7T₩1.8T
Growth3.1%3.9%−3.5%1.1%1.6%2.1%2.5%3.0%
EBIT₩78B₩89B₩83B₩70B₩71B₩73B₩75B₩77B
EBIT margin4.8%5.2%5.1%4.3%4.3%4.3%4.3%4.3%
After-tax EBIT₩57B₩64B₩60B₩51B₩52B₩53B₩54B₩56B
+ Depreciation₩48B₩50B₩47B₩47B₩48B₩49B₩50B₩52B
− Capital spending₩34B₩67B₩64B₩54B₩55B₩56B₩57B₩59B
− Working capital−₩501B₩108B₩357B−₩338M−₩497M−₩662M−₩805M−₩990M
Free cash flow₩572B−₩60B−₩314B₩45B₩46B₩47B₩48B₩50B
Discount factor———0.9550.9110.8700.8310.793
Present value———₩43B₩42B₩41B₩40B₩39B

Terminal value ₩1.9T, worth ₩1.5T today: 88% 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 ₩6,014 a share)Now 0.40×₩2,4320.40×₩3,0150.50×₩3,6680.61×
Price / earnings (last 12 months: ₩1,481 a share)Now 1.62×₩2,5351.71×₩6,0844.11×₩21,94214.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩655 a share)Now 3.65×₩1,1221.71×₩2,6914.11×₩9,70714.8×

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%₩24,591₩31,842₩43,250₩63,821₩111,998
4.2%₩19,108₩24,044₩31,181₩42,408₩62,653
4.7%₩15,089₩18,650₩23,509₩30,533₩41,583
5.2%₩12,018₩14,697₩18,202₩22,984₩29,898
5.7%₩9,594₩11,675₩14,312₩17,762₩22,471

Now (TTM)

Market cap
₩120B
Enterprise value
₩505B
P/E
1.6×
P/B
0.4×
P/S
0.1×
EV/EBITDA
4.2×
Dividend yield
3.1%

Over time (at each year end)

20252024202320222021
Price₩2,165₩1,511₩2,030₩1,400₩2,055
Market cap₩108B₩76B₩102B₩70B₩103B
P/E1.4×2.8×29.3×25.1×—
P/B0.4×0.4×0.6×0.4×0.7×
P/S0.1×0.0×0.1×0.0×0.1×
EV/EBITDA3.7×—0.1×6.6×10.7×
Dividend yield3.5%5.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hwaseung1.6×0.4×0.1×4.2×3.1%
Hyundai Mobis8.7×0.6×0.5×—1.8%
SL6.0×0.9×0.4×3.7×0.0%
HL Mando10.7×0.6×0.2×—1.9%
Samhyun—12.1×17.1×—0.0%
Hyundai WIA19.4×0.4×0.2×—2.4%
SNT Dynamics13.0×0.7×0.8×—7.0%
Similar companies (median)10.7×0.7×0.5×3.7×1.9%

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

Also known as: Hwaseung / 화승코퍼레이션 / 013520 / KRX:013520

Source: KRX statistical information