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Hancom

030520 · KOSDAQ · ₩030520 · 한컴

₩15,190▼ ₩490 (3.13%)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

₩27,744

vs the current price (₩15,190)

Enterprise value
₩627B
Equity value
₩671B
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 ₩15,190, the model needs an operating margin of 6.5% every year (it uses 11.3%).
  • Or revenue growth −15.6 points a year higher than assumed in each of the 5 years.
  • 36% 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 9.3× against a typical 26.3× 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
₩17,184
+13.1%
Base
₩27,744
+82.6%
Bull
₩45,567
+200.0%

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 (11.3%).

Revenue growth

  • 10.5%

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

    Default: the last 3 years' revenue growth (10.5% a year, annual reports), fading to 3% by year 5.

  • 8.6%

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

    Default: the last 3 years' revenue growth (10.5% a year, annual reports), fading to 3% by year 5.

  • 6.8%

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

    Default: the last 3 years' revenue growth (10.5% a year, annual reports), fading to 3% by year 5.

  • 4.9%

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

    Default: the last 3 years' revenue growth (10.5% 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 (10.5% a year, annual reports), fading to 3% by year 5.

Business

  • 11.3%

    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.

  • 5.2%

    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).

  • 6.4%

    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).

  • 9.1%

    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

  • 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 0.32, 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)
₩363B
Net debt (borrowings and leases − cash and deposits)
−₩162B
+ Stakes and investments
₩11B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩130B
Shares
24,179,744
Share price
₩15,190
Market cap
₩367B

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₩271B₩305B₩327B₩401B₩436B₩465B₩488B₩503B
Growth12.0%12.4%7.2%10.5%8.6%6.8%4.9%3.0%
EBIT₩34B₩40B₩36B₩45B₩49B₩53B₩55B₩57B
EBIT margin12.6%13.3%11.1%11.3%11.3%11.3%11.3%11.3%
After-tax EBIT₩25B₩29B₩26B₩33B₩36B₩38B₩40B₩41B
+ Depreciation———₩21B₩23B₩24B₩25B₩26B
− Capital spending₩20B₩22B₩16B₩26B₩28B₩30B₩31B₩32B
− Working capital−₩34B−₩22B−₩26B₩3.5B₩3.1B₩2.7B₩2.1B₩1.3B
Free cash flow———₩25B₩27B₩30B₩32B₩34B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩23B₩24B₩24B₩24B₩24B

Terminal value ₩724B, worth ₩508B 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 ₩15,979 a share)Now 0.95×₩15,6840.98×₩22,4641.41×₩28,6401.79×
Price / earnings (last 12 months: ₩1,626 a share)Now 9.34×₩12,0627.42×₩42,83626.3×₩75,83646.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,664 a share)Now 4.15×₩27,1727.42×₩96,49826.3×₩170,84046.6×

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%₩28,942₩31,213₩34,009₩37,537₩42,130
6.8%₩26,502₩28,336₩30,550₩33,276₩36,717
7.3%₩24,450₩25,956₩27,744₩29,903₩32,562
7.8%₩22,702₩23,956₩25,424₩27,168₩29,274
8.3%₩21,194₩22,251₩23,474₩24,906₩26,607

Now (TTM)

Market cap
₩367B
Enterprise value
₩205B
P/E
9.3×
P/B
1.0×
P/S
1.0×
EV/EBITDA
—
Dividend yield
2.6%

Over time (at each year end)

20252024202320222021
Price₩22,950₩21,150₩14,270₩12,300₩26,550
Market cap₩555B₩511B₩345B₩297B₩642B
P/E16.1×36.8×22.9×6.4×35.7×
P/B1.5×1.5×1.0×0.9×2.3×
P/S1.7×1.7×1.3×1.2×1.6×
EV/EBITDA—————
Dividend yield1.7%1.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hancom9.3×1.0×1.0×—2.6%
Krafton10.0×1.2×1.9×—1.2%
Hyundai Autoever41.5×4.2×1.7×—0.7%
NC7.0×1.2×2.1×8.5×0.6%
Netmarble7.1×0.5×1.0×—2.6%
PearlAbyss8.1×2.1×3.0×5.3×0.0%
Shift UP9.0×1.8×7.1×—0.0%
Similar companies (median)8.5×1.5×2.0×6.9×0.6%

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

Also known as: Hancom / 한컴 / 030520 / KRX:030520

Source: KRX statistical information