Hankook Steel한국주강
025890 · KOSPI · ₩025890 · 한국주강
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
With these assumptions the model gives no positive value.
- Enterprise value
- −₩1.8B
- Equity value
- −₩7.5B
- WACC
- 6.7%
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 gives no positive value at these assumptions. What we can see:
- To match today's price of ₩2,480, the model needs an operating margin of 7.6% every year (it uses −0.0%).
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
- —
- Base
- —
- Bull
- ₩362
- −85.4%
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 (−0.0%).
Revenue growth
- -9.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.8% a year, annual reports), fading to 3% by year 5.
- -6.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.8% 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 (-9.8% a year, annual reports), fading to 3% by year 5.
- -0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.8% 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 (-9.8% a year, annual reports), fading to 3% by year 5.
Business
- -0%
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.
- 1.5%
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).
- 1.8%
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).
- 15%
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 0.14, 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)
- ₩39B
- Net debt (borrowings and leases − cash and deposits)
- ₩5.8B
- + Stakes and investments
- ₩114M
- Associates, long-term financial assets and deposits (book value)
- Shares
- 11,144,616
- Share price
- ₩2,480
- Market cap
- ₩28B
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 | ₩54B | ₩47B | ₩40B | ₩35B | ₩33B | ₩31B | ₩31B | ₩32B |
| Growth | −1.0% | −12.1% | −15.7% | −9.8% | −6.6% | −3.4% | −0.2% | 3.0% |
| EBIT | ₩2.4B | ₩1.1B | −₩177M | ₩0 | ₩0 | ₩0 | ₩0 | ₩0 |
| EBIT margin | 4.5% | 2.3% | −0.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| After-tax EBIT | ₩1.8B | ₩779M | −₩128M | ₩0 | ₩0 | ₩0 | ₩0 | ₩0 |
| + Depreciation | — | — | — | ₩523M | ₩489M | ₩472M | ₩471M | ₩485M |
| − Capital spending | ₩670M | ₩778M | ₩1B | ₩628M | ₩587M | ₩567M | ₩565M | ₩582M |
| − Working capital | −₩4.7B | −₩3.7B | −₩1.3B | −₩569M | −₩345M | −₩166M | −₩9.4M | ₩141M |
| Free cash flow | — | — | — | ₩464M | ₩248M | ₩72M | −₩85M | −₩238M |
| Discount factor | — | — | — | 0.937 | 0.878 | 0.822 | 0.771 | 0.722 |
| Present value | — | — | — | ₩435M | ₩217M | ₩59M | −₩65M | −₩172M |
Terminal value −₩3.1B, worth −₩2.3B today: 126% 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 ₩3,001 a share)Now 0.83× | ₩1,7960.60× | ₩2,5050.83× | ₩4,7791.59× |
| P/E on run-rate earnings (Q2 2026 × 4: ₩41 a share)Now 59.8× | ₩43510.5× | ₩97123.4× | ₩1,33932.3× |
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% |
|---|---|---|---|---|---|
| 5.7% | — | — | — | — | — |
| 6.2% | — | — | — | — | — |
| 6.7% | — | — | — | — | — |
| 7.2% | — | — | — | — | — |
| 7.7% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩28B
- Enterprise value
- ₩33B
- P/E
- —
- P/B
- 0.8×
- P/S
- 0.7×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩1,805 | ₩1,879 | ₩3,035 | ₩2,560 | ₩5,320 |
| Market cap | ₩20B | ₩21B | ₩34B | ₩29B | ₩59B |
| P/E | — | 27.5× | 13.6× | 16.6× | — |
| P/B | 0.6× | 0.6× | 1.0× | 1.0× | 2.1× |
| P/S | 0.5× | 0.4× | 0.6× | 0.5× | 1.3× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | — | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Hankook Steel | — | 0.8× | 0.7× | — | 0.0% |
| Doosan Enerbility | 200.6× | 4.5× | 2.0× | — | 0.0% |
| Hanmi Semiconductor | 84.5× | 25.1× | 34.0× | 76.1× | 0.4% |
| Jusung Engineering | 1,135.2× | 13.9× | 36.4× | 2,185.7× | 0.0% |
| Rainbow Robotics | 4,308.5× | 55.2× | 162.6× | — | 0.0% |
| EO Technics | 47.1× | 6.8× | 11.5× | — | 0.0% |
| Doosan Bobcat | 13,805.1× | 923.8× | 743.7× | — | 3.5% |
| Similar companies (median) | 667.9× | 19.5× | 35.2× | 1,130.9× | 0.0% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Hankook Steel / 한국주강 / 025890 / KRX:025890
Source: KRX statistical information