KOSPI · 020000 · Textiles & Apparel · ₩020000

Handsome한섬

020000 · KOSPI · ₩020000 · 한섬

₩17,700▼ ₩900 (4.84%)End-of-day · Oct 26, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩50,222

vs the current price (₩17,700)

Enterprise value: ₩1.2T
Equity value: ₩1.1T
WACC: 6.8%

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 184% 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 ₩17,700, the model needs an operating margin of 3.5% every year (it uses 6.6%).
Today's P/E is 6.8× against a typical 5.9× 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: ₩23,119; +30.6%
Base: ₩50,222; +183.7%
Bull: ₩101,335; +472.5%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (6.6%).

Revenue growth

Revenue growth, year 1-1.1%
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.
Revenue growth, year 2-0.1%
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.
Revenue growth, year 30.9%
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.
Revenue growth, year 42%
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.
Revenue growth, year 53%
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

EBIT margin6.6%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation3%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so a typical level.
Capital spending4%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: not in the statements, so a typical level.
Working capital37.1%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
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.
Beta0.6
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 0.32, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩1.5T
Net debt (borrowings and leases − cash and deposits): ₩72B
+ Stakes and investments: ₩70M; Associates, long-term financial assets and deposits (book value)
Shares: 21,476,994
Share price: ₩17,700
Market cap: ₩380B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩1.5T	₩1.5T	₩1.5T	₩1.5T	₩1.5T	₩1.5T	₩1.6T	₩1.6T
Growth	−0.9%	−2.8%	0.4%	−1.1%	−0.1%	0.9%	2.0%	3.0%
EBIT	₩100B	₩63B	₩52B	₩101B	₩101B	₩102B	₩104B	₩107B
EBIT margin	6.6%	4.3%	3.5%	6.6%	6.6%	6.6%	6.6%	6.6%
After-tax EBIT	₩73B	₩46B	₩38B	₩73B	₩73B	₩74B	₩75B	₩78B
+ Depreciation	—	—	—	₩46B	₩46B	₩46B	₩47B	₩49B
− Capital spending	—	—	—	₩61B	₩61B	₩62B	₩63B	₩65B
− Working capital	−₩118B	−₩52B	−₩2.5B	−₩6.3B	−₩568M	₩5.1B	₩11B	₩18B
Free cash flow	—	—	—	₩64B	₩58B	₩53B	₩48B	₩44B
Discount factor	—	—	—	0.936	0.877	0.821	0.769	0.720
Present value	—	—	—	₩60B	₩51B	₩44B	₩37B	₩32B

Terminal value ₩1.3T, worth ₩927B 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:

	Low	Typical	High
Price / book (book value ₩67,573 a share)Now 0.26×	₩15,8020.23×	₩20,1640.30×	₩41,6230.62×
Price / earnings (last 12 months: ₩2,611 a share)Now 6.78×	₩10,4013.98×	₩15,5365.95×	₩24,4119.35×
P/E on run-rate earnings (Q2 2026 × 4: ₩615 a share)Now 28.8×	₩2,4483.98×	₩3,6575.95×	₩5,7479.35×

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%
5.8%	₩56,567	₩60,076	₩64,480	₩70,187	₩77,895
6.3%	₩50,745	₩53,342	₩56,520	₩60,506	₩65,669
6.8%	₩45,933	₩47,885	₩50,222	₩53,079	₩56,661
7.3%	₩41,890	₩43,372	₩45,116	₩47,201	₩49,749
7.8%	₩38,447	₩39,580	₩40,893	₩42,435	₩44,278

Now (TTM)

Market cap: ₩380B
Enterprise value: ₩400B
P/E: 6.8×
P/B: 0.3×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩16,000	₩14,710	₩19,120	₩27,050	₩35,600
Market cap	₩344B	₩316B	₩411B	₩581B	₩765B
P/E	7.4×	7.1×	4.9×	4.7×	6.7×
P/B	0.2×	0.2×	0.3×	0.4×	0.6×
P/S	0.2×	0.2×	0.3×	0.4×	0.6×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Handsome	6.8×	0.3×	0.2×	—	0.0%
F&F	4.4×	1.1×	1.1×	—	4.5%
LF	5.4×	0.4×	0.3×	4.5×	3.3%
Chokwang Leather	44.3×	0.7×	4.9×	59.0×	0.0%
Hansae	9.4×	0.4×	0.2×	—	0.0%
JS	3.9×	0.6×	0.2×	—	5.5%
Ilshin Spinning	5.0×	0.2×	0.4×	—	3.9%
Similar companies (median)	5.2×	0.5×	0.4×	31.7×	3.6%

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

Also known as: Handsome / 한섬 / 020000 / KRX:020000

Source: KRX statistical information