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Youngbo Chemical

014440 · KOSPI · ₩014440 · 영보화학

₩4,700▼ ₩40 (0.84%)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

₩10,186

vs the current price (₩4,700)

Enterprise value
₩194B
Equity value
₩204B
WACC
7.4%

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 117% 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 ₩4,700, the model needs an operating margin of 6.4% every year (it uses 11.3%).
  • Or revenue growth −28.7 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 5.9% to 16.5% 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.
  • Today's P/E is 5.1× against a typical 6.2× 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
₩6,163
+31.1%
Base
₩10,186
+116.7%
Bull
₩17,102
+263.9%

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 (11.3%).

Revenue growth

  • 13.1%

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

    Default: the last 3 years' revenue growth (13.1% a year, annual reports), fading to 3% by year 5.

  • 10.6%

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

    Default: the last 3 years' revenue growth (13.1% a year, annual reports), fading to 3% by year 5.

  • 8.1%

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

    Default: the last 3 years' revenue growth (13.1% a year, annual reports), fading to 3% by year 5.

  • 5.5%

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

    Default: the last 3 years' revenue growth (13.1% 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 (13.1% a year, annual reports), fading to 3% by year 5.

Business

  • 11.3%

    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.

  • 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).

  • 6.2%

    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.

  • 4.11%

    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 -0.06, 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)
₩125B
Net debt (borrowings and leases − cash and deposits)
−₩9.3B
Shares
20,000,000
Share price
₩4,700
Market cap
₩94B

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₩90B₩118B₩120B₩142B₩157B₩169B₩179B₩184B
Growth8.8%30.2%2.2%13.1%10.6%8.1%5.5%3.0%
EBIT₩7B₩19B₩19B₩16B₩18B₩19B₩20B₩21B
EBIT margin7.7%16.5%16.1%11.3%11.3%11.3%11.3%11.3%
After-tax EBIT₩5B₩14B₩14B₩12B₩13B₩14B₩15B₩15B
+ Depreciation———₩7.1B₩7.8B₩8.5B₩8.9B₩9.2B
− Capital spending₩5.7B₩7.2B₩7.6B₩8.8B₩9.7B₩11B₩11B₩11B
− Working capital−₩372M₩42B₩12B₩6.6B₩6B₩5.1B₩3.7B₩2.1B
Free cash flow———₩3.3B₩5B₩6.8B₩8.8B₩11B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩3.1B₩4.3B₩5.5B₩6.6B₩7.5B

Terminal value ₩239B, worth ₩167B today: 86% 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 ₩9,864 a share)Now 0.48×₩4,0930.41×₩4,6390.47×₩5,3080.54×
Price / earnings (last 12 months: ₩915 a share)Now 5.14×₩4,0784.46×₩5,6496.18×₩14,47715.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩891 a share)Now 5.27×₩3,9744.46×₩5,5056.18×₩14,11015.8×

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%
6.4%₩11,049₩11,756₩12,621₩13,704₩15,100
6.9%₩10,054₩10,611₩11,278₩12,094₩13,116
7.4%₩9,216₩9,661₩10,186₩10,815₩11,584
7.9%₩8,501₩8,861₩9,280₩9,774₩10,366
8.4%₩7,885₩8,179₩8,517₩8,911₩9,375

Now (TTM)

Market cap
₩94B
Enterprise value
₩84B
P/E
5.1×
P/B
0.5×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,830₩3,560₩3,760₩3,420₩4,425
Market cap₩97B₩71B₩75B₩68B₩89B
P/E5.7×3.2×12.6×10.2×25.3×
P/B0.5×0.4×0.5×0.4×0.6×
P/S0.8×0.6×0.8×0.8×0.9×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Youngbo Chemical5.1×0.5×0.8×—0.0%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea20.1×2.6×2.1×—0.7%
Dongwon Systems9.7×0.7×0.4×5.7×2.8%
Nexen Tire3.5×0.3×0.2×—3.6%
PI Advanced Materials12.8×1.2×1.7×5.2×2.2%
Similar companies (median)7.8×0.6×0.4×5.5×2.5%

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

Also known as: Youngbo Chemical / 영보화학 / 014440 / KRX:014440

Source: KRX statistical information