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Hankuk Carbon

017960 · KOSPI · ₩017960 · 한국카본

₩15,170▼ ₩320 (2.07%)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

₩41,667

vs the current price (₩15,170)

Enterprise value
₩1.8T
Equity value
₩2.2T
WACC
7.3%

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 175% 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 ₩15,170, the model needs an operating margin of 2.6% every year (it uses 9.0%).
  • Margins ranged from 2.8% to 14.4% 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 7.6× against a typical 39.6× 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
₩26,363
+73.8%
Base
₩41,667
+174.7%
Bull
₩67,458
+344.7%

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 (9.0%).

Revenue growth

  • 25%

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

    Default: the last 3 years' revenue growth (35% a year, annual reports), fading to 3% by year 5.

  • 19.5%

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

    Default: the last 3 years' revenue growth (35% a year, annual reports), fading to 3% by year 5.

  • 14%

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

    Default: the last 3 years' revenue growth (35% a year, annual reports), fading to 3% by year 5.

  • 8.5%

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

    Default: the last 3 years' revenue growth (35% 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 (35% a year, annual reports), fading to 3% by year 5.

Business

  • 9%

    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.

  • 0.2%

    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).

  • 0.3%

    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).

  • 4.7%

    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: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.39, 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)
₩908B
Net debt (borrowings and leases − cash and deposits)
−₩281B
+ Stakes and investments
₩24B
Associates, long-term financial assets and deposits (book value)
Shares
51,676,486
Share price
₩15,170
Market cap
₩784B

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₩594B₩742B₩909B₩1.1T₩1.4T₩1.5T₩1.7T₩1.7T
Growth61.0%24.8%22.5%25.0%19.5%14.0%8.5%3.0%
EBIT₩16B₩45B₩131B₩102B₩122B₩139B₩151B₩156B
EBIT margin2.8%6.1%14.4%9.0%9.0%9.0%9.0%9.0%
After-tax EBIT₩12B₩33B₩95B₩74B₩89B₩101B₩109B₩113B
+ Depreciation———₩2.3B₩2.7B₩3.1B₩3.4B₩3.5B
− Capital spending₩231M₩6.3B₩44M₩3.4B₩4.1B₩4.6B₩5B₩5.2B
− Working capital−₩1.2B−₩104B−₩74B₩11B₩10B₩8.9B₩6.2B₩2.4B
Free cash flow———₩62B₩77B₩90B₩102B₩109B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩58B₩67B₩73B₩77B₩76B

Terminal value ₩2.1T, worth ₩1.5T today: 81% 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 ₩13,032 a share)Now 1.16×₩15,8531.22×₩20,1941.55×₩41,8953.21×
Price / earnings (last 12 months: ₩1,986 a share)Now 7.64×₩28,71614.5×₩78,58139.6×₩146,62373.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,830 a share)Now 5.36×₩40,92614.5×₩111,99339.6×₩208,96873.8×

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%
6.3%₩43,180₩46,371₩50,301₩55,262₩61,721
6.8%₩39,831₩42,414₩45,534₩49,376₩54,227
7.3%₩37,014₩39,141₩41,667₩44,717₩48,474
7.8%₩34,614₩36,389₩38,468₩40,938₩43,921
8.3%₩32,544₩34,042₩35,778₩37,811₩40,227

Now (TTM)

Market cap
₩784B
Enterprise value
₩495B
P/E
7.6×
P/B
1.2×
P/S
0.9×
EV/EBITDA
—
Dividend yield
2.1%

Over time (at each year end)

20252024202320222021
Price₩29,850₩11,750₩11,640₩11,050₩10,750
Market cap₩1.5T₩607B₩602B₩571B₩556B
P/E15.2×29.9×—28.2×38.7×
P/B2.7×1.3×1.3×1.4×1.4×
P/S1.7×0.8×1.0×1.5×1.5×
EV/EBITDA—————
Dividend yield1.1%1.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hankuk Carbon7.6×1.2×0.9×—2.1%
CS Wind373.3×1.3×0.6×—2.6%
Taewoong60.7×0.7×1.2×19.5×0.0%
YG-15.1×0.8×0.5×—1.9%
Bosung Power Technology18.2×2.1×1.8×8.2×0.0%
HT Robotics39.3×2.8×1.9×—0.0%
Hansun Engineering32.5×2.3×2.7×13.1×0.0%
Similar companies (median)35.9×1.7×1.5×13.1×0.0%

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

Also known as: Hankuk Carbon / 한국카본 / 017960 / KRX:017960

Source: KRX statistical information