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Hwang Kum Steel & Technology

032560 · KOSPI · ₩032560 · 황금에스티

₩5,270▼ ₩110 (2.04%)End-of-day · Oct 29, 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

₩27,369

vs the current price (₩5,270)

Enterprise value
₩366B
Equity value
₩465B
WACC
7.4%

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 419% 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 ₩5,270, the model needs an operating margin of 1.0% every year (it uses 9.2%).
  • Margins ranged from 5.7% to 15.2% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
  • Today's P/E is 3.4× against a typical 4.4× 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
₩18,511
+251.3%
Base
₩27,369
+419.3%
Bull
₩42,795
+712.0%

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 (9.2%).

Revenue growth

  • -1.7%

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

    Default: the last 3 years' revenue growth (-1.7% a year, annual reports), fading to 3% by year 5.

  • -0.5%

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

    Default: the last 3 years' revenue growth (-1.7% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.7% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.7% 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 (-1.7% a year, annual reports), fading to 3% by year 5.

Business

  • 9.2%

    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.

  • 2.7%

    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).

  • 3.4%

    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).

  • 31.5%

    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.

  • 4.08%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 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 0.1, 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.

  • 5.58%

    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)
₩357B
Net debt (borrowings and leases − cash and deposits)
−₩86B
+ Stakes and investments
₩65B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩52B
Shares
17,000,000
Share price
₩5,270
Market cap
₩90B

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₩355B₩321B₩317B₩350B₩349B₩351B₩357B₩368B
Growth6.5%−9.6%−1.4%−1.7%−0.5%0.6%1.8%3.0%
EBIT₩29B₩19B₩18B₩32B₩32B₩32B₩33B₩34B
EBIT margin8.2%6.0%5.7%9.2%9.2%9.2%9.2%9.2%
After-tax EBIT₩21B₩14B₩13B₩23B₩23B₩23B₩24B₩25B
+ Depreciation———₩9.5B₩9.4B₩9.5B₩9.6B₩9.9B
− Capital spending₩5.8B₩10B₩17B₩12B₩12B₩12B₩12B₩13B
− Working capital−₩42B₩7.8B₩2.6B−₩1.9B−₩552M₩659M₩2B₩3.4B
Free cash flow———₩23B₩21B₩20B₩19B₩19B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩21B₩19B₩16B₩15B₩13B

Terminal value ₩402B, worth ₩282B today: 77% 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 ₩23,644 a share)Now 0.22×₩5,4490.23×₩7,6920.33×₩10,6270.45×
Price / earnings (last 12 months: ₩1,557 a share)Now 3.38×₩5,2703.38×₩6,8124.37×₩8,6665.56×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,520 a share)Now 2.09×₩8,5283.38×₩11,0234.37×₩14,0235.56×

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%
6.4%₩29,061₩30,498₩32,257₩34,463₩37,314
6.9%₩27,069₩28,202₩29,562₩31,228₩33,316
7.4%₩25,390₩26,297₩27,369₩28,655₩30,230
7.9%₩23,956₩24,692₩25,549₩26,561₩27,776
8.4%₩22,717₩23,320₩24,014₩24,823₩25,777

Now (TTM)

Market cap
₩90B
Enterprise value
₩1.4B
P/E
3.4×
P/B
0.2×
P/S
0.3×
EV/EBITDA
—
Dividend yield
2.8%

Over time (at each year end)

20252024202320222021
Price₩5,960₩4,845₩7,150₩6,970₩7,958
Market cap₩101B₩82B₩122B₩118B₩135B
P/E5.6×5.0×5.0×2.9×4.5×
P/B0.3×0.2×0.3×0.4×0.5×
P/S0.3×0.3×0.3×0.4×0.5×
EV/EBITDA—————
Dividend yield2.5%3.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hwang Kum Steel & Technology3.4×0.2×0.3×—2.8%
POSCO Holdings16.2×0.4×0.3×7.7×3.6%
Korea Zinc18.6×1.6×0.9×—2.3%
Hyundai Steel—0.2×0.2×—1.9%
Poongsan8.1×0.7×0.3×5.9×2.9%
SeAH Besteel Holdings12.2×0.5×0.3×9.5×4.0%
Sama Aluminium—4.1×3.0×—0.0%
Similar companies (median)14.2×0.6×0.3×7.7×2.6%

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

Also known as: Hwang Kum Steel & Technology / 황금에스티 / 032560 / KRX:032560

Source: KRX statistical information