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Aekyung Industrial

018250 · KOSPI · ₩018250 · 애경산업

₩10,660▲ ₩10 (0.09%)End-of-day · Oct 27, 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

₩19,467

vs the current price (₩10,660)

Enterprise value
₩405B
Equity value
₩514B
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 83% 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 ₩10,660, the model needs an operating margin of 2.8% every year (it uses 5.2%).
  • 71% 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 16.2× against a typical 14.2× 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
₩10,539
−1.1%
Base
₩19,467
+82.6%
Bull
₩35,543
+233.4%

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 (5.2%).

Revenue growth

  • 2.4%

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

    Default: the last 3 years' revenue growth (2.4% 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 (2.4% a year, annual reports), fading to 3% by year 5.

  • 2.7%

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

    Default: the last 3 years' revenue growth (2.4% a year, annual reports), fading to 3% by year 5.

  • 2.8%

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

    Default: the last 3 years' revenue growth (2.4% 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 (2.4% a year, annual reports), fading to 3% by year 5.

Business

  • 5.2%

    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.

  • 2.2%

    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).

  • 2.8%

    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).

  • 21.8%

    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.

  • 4.03%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 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 0.18, 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.

  • 5.53%

    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)
₩685B
Net debt (borrowings and leases − cash and deposits)
−₩109B
Shares
26,409,935
Share price
₩10,660
Market cap
₩282B

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₩669B₩679B₩655B₩702B₩719B₩738B₩759B₩782B
Growth9.6%1.5%−3.6%2.4%2.5%2.7%2.8%3.0%
EBIT₩62B₩47B₩21B₩36B₩37B₩38B₩39B₩41B
EBIT margin9.3%6.9%3.2%5.2%5.2%5.2%5.2%5.2%
After-tax EBIT₩45B₩34B₩15B₩26B₩27B₩28B₩29B₩29B
+ Depreciation———₩15B₩16B₩16B₩17B₩17B
− Capital spending₩33B₩13B₩10B₩20B₩20B₩21B₩21B₩22B
− Working capital₩52B₩67B−₩37B₩3.6B₩3.8B₩4.2B₩4.5B₩5B
Free cash flow———₩19B₩19B₩19B₩20B₩20B
Discount factor———0.9320.8680.8090.7530.702
Present value———₩17B₩16B₩16B₩15B₩14B

Terminal value ₩466B, worth ₩327B 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 ₩15,635 a share)Now 0.68×₩12,8690.82×₩17,6511.13×₩24,7741.58×
Price / earnings (last 12 months: ₩657 a share)Now 16.2×₩6,0399.19×₩9,33414.2×₩17,84127.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩698 a share)Now 15.3×₩6,4159.19×₩9,91514.2×₩18,95127.1×

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%₩20,914₩21,913₩23,137₩24,674₩26,666
6.8%₩19,403₩20,179₩21,112₩22,254₩23,688
7.3%₩18,133₩18,745₩19,467₩20,335₩21,398
7.8%₩17,050₩17,538₩18,107₩18,777₩19,583
8.3%₩16,116₩16,509₩16,962₩17,488₩18,109

Now (TTM)

Market cap
₩282B
Enterprise value
₩167B
P/E
16.2×
P/B
0.7×
P/S
0.4×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩13,140₩13,220₩18,620₩20,900₩19,000
Market cap₩347B₩349B₩492B₩552B₩502B
P/E22.8×8.2×10.1×33.1×31.9×
P/B0.9×0.9×1.3×1.5×1.4×
P/S0.5×0.5×0.7×0.9×0.9×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Aekyung Industrial16.2×0.7×0.4×—0.0%
APR24.1×16.1×4.5×23.7×1.8%
Amorepacific25.4×1.3×1.6×—1.0%
LG H&H—0.7×0.6×6.8×0.8%
Cosmax16.2×4.6×1.1×13.8×1.3%
Kolmar Korea15.0×2.8×0.9×—0.7%
d'Alba Global16.8×7.2×2.9×—1.8%
Similar companies (median)16.8×3.7×1.4×13.8×1.1%

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

Also known as: Aekyung Industrial / 애경산업 / 018250 / KRX:018250

Source: KRX statistical information