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SJM Holdings

025530 · KOSPI · ₩025530 · SJM홀딩스

₩3,435▼ ₩15 (0.43%)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

₩5,722

vs the current price (₩3,435)

Enterprise value
₩114B
Equity value
₩85B
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 67% 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 ₩3,435, the model needs an operating margin of 4.4% every year (it uses 5.5%).
  • 54% 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 3.2× against a typical 7.7× 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
₩1,210
−64.8%
Base
₩5,722
+66.6%
Bull
₩14,094
+310.3%

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 (5.5%).

Revenue growth

  • 3.8%

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

    Default: the last 3 years' revenue growth (3.8% a year, annual reports), fading to 3% by year 5.

  • 3.6%

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

    Default: the last 3 years' revenue growth (3.8% a year, annual reports), fading to 3% by year 5.

  • 3.4%

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

    Default: the last 3 years' revenue growth (3.8% a year, annual reports), fading to 3% by year 5.

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.8% 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 (3.8% a year, annual reports), fading to 3% by year 5.

Business

  • 5.5%

    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.

  • 3.3%

    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).

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • 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.

  • 4.01%

    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 0.18, 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.

  • 5.51%

    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)
₩209B
Net debt (borrowings and leases − cash and deposits)
−₩125B
+ Stakes and investments
₩659M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩154B
Shares
14,934,008
Share price
₩3,435
Market cap
₩51B

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₩203B₩206B₩206B₩217B₩225B₩233B₩240B₩248B
Growth10.1%1.7%−0.2%3.8%3.6%3.4%3.2%3.0%
EBIT₩15B₩14B₩11B₩12B₩12B₩13B₩13B₩14B
EBIT margin7.2%6.7%5.1%5.5%5.5%5.5%5.5%5.5%
After-tax EBIT₩11B₩9.9B₩7.6B₩8.7B₩9B₩9.3B₩9.6B₩9.9B
+ Depreciation₩6.3B₩7.2B₩6.8B₩7.2B₩7.4B₩7.7B₩7.9B₩8.2B
− Capital spending———₩8.7B₩9B₩9.3B₩9.6B₩9.9B
− Working capital−₩2B₩21B−₩15B₩3.2B₩3.1B₩3.1B₩3B₩2.9B
Free cash flow———₩4B₩4.3B₩4.6B₩4.9B₩5.3B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩3.7B₩3.7B₩3.7B₩3.7B₩3.7B

Terminal value ₩136B, worth ₩96B today: 84% 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 ₩12,357 a share)Now 0.28×₩3,6270.29×₩4,0640.33×₩4,7800.39×
Price / earnings (last 12 months: ₩1,077 a share)Now 3.19×₩5,6125.21×₩8,2637.67×₩35,55233.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,868 a share)Now 1.84×₩9,7355.21×₩14,3337.67×₩61,66533.0×

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%₩6,927₩7,240₩7,620₩8,093₩8,701
6.8%₩6,098₩6,314₩6,571₩6,882₩7,269
7.3%₩5,401₩5,550₩5,722₩5,925₩6,170
7.8%₩4,808₩4,908₩5,020₩5,149₩5,300
8.3%₩4,298₩4,361₩4,430₩4,507₩4,595

Now (TTM)

Market cap
₩51B
Enterprise value
−₩79B
P/E
3.2×
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
7.3%

Over time (at each year end)

20252024202320222021
Price₩3,750₩3,230₩3,725₩3,425₩3,735
Market cap₩56B₩48B₩56B₩51B₩56B
P/E6.7×5.1×5.8×29.7×17.6×
P/B0.3×0.3×0.4×0.3×0.4×
P/S0.3×0.2×0.3×0.3×0.4×
EV/EBITDA—————
Dividend yield6.7%7.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SJM Holdings3.2×0.3×0.2×—7.3%
Samsung C&T18.1×0.5×1.2×—0.9%
POSCO International10.3×1.2×0.3×—3.8%
ISC42.6×5.7×11.9×—0.5%
Youngone5.2×0.7×0.7×—3.0%
Dong SUH Companies19.6×1.7×5.3×—4.0%
SK Gas7.4×0.6×0.3×—3.5%
Similar companies (median)14.2×1.0×0.9×—3.3%

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

Also known as: SJM Holdings / SJM홀딩스 / 025530 / KRX:025530

Source: KRX statistical information