Jahwa Electronics자화전자
033240 · KOSPI · ₩033240 · 자화전자
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
- −₩135B
- Equity value
- −₩177B
- WACC
- 7.8%
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 gives no positive value at these assumptions. What we can see:
- To match today's price of ₩20,800, the model needs an operating margin of 6.1% every year (it uses 3.2%).
- Margins ranged from −4.0% to 6.6% 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.
- 40% 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.
- In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
- Today's P/E is 4.0× against a typical 23.4× 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
- —
- Base
- —
- Bull
- ₩18,913
- −9.1%
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Margin path
Every year uses the cycle-average margin (3.2%).
Revenue growth
- 25%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (42.7% a year, annual reports), fading to 3% by year 5.
- 19.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (42.7% a year, annual reports), fading to 3% by year 5.
- 14%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (42.7% a year, annual reports), fading to 3% by year 5.
- 8.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (42.7% 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 (42.7% a year, annual reports), fading to 3% by year 5.
Business
- 3.2%
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.
- 14.3%
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).
- 17.9%
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).
- 21%
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.
- 4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
- 0.78
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 0.67, 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.
- 5.61%
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)
- ₩1T
- Net debt (borrowings and leases − cash and deposits)
- ₩73B
- + Stakes and investments
- ₩31B
- Associates, long-term financial assets and deposits (book value)
- − Minority interests
- ₩10,820
- Shares
- 21,605,502
- Share price
- ₩20,800
- Market cap
- ₩449B
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 | ₩503B | ₩681B | ₩849B | ₩1.3T | ₩1.5T | ₩1.7T | ₩1.9T | ₩1.9T |
| Growth | 72.2% | 35.3% | 24.6% | 25.0% | 19.5% | 14.0% | 8.5% | 3.0% |
| EBIT | −₩16B | ₩45B | ₩42B | ₩41B | ₩49B | ₩55B | ₩60B | ₩62B |
| EBIT margin | −3.2% | 6.6% | 4.9% | 3.2% | 3.2% | 3.2% | 3.2% | 3.2% |
| After-tax EBIT | −₩12B | ₩33B | ₩30B | ₩29B | ₩35B | ₩40B | ₩44B | ₩45B |
| + Depreciation | — | — | — | ₩182B | ₩217B | ₩247B | ₩268B | ₩276B |
| − Capital spending | ₩150B | ₩67B | ₩119B | ₩227B | ₩272B | ₩310B | ₩336B | ₩346B |
| − Working capital | ₩136B | −₩35B | −₩1.6B | ₩53B | ₩52B | ₩45B | ₩31B | ₩12B |
| Free cash flow | — | — | — | −₩70B | −₩71B | −₩67B | −₩55B | −₩37B |
| Discount factor | — | — | — | 0.928 | 0.861 | 0.798 | 0.741 | 0.687 |
| Present value | — | — | — | −₩65B | −₩61B | −₩53B | −₩41B | −₩25B |
Terminal value ₩160B, worth ₩110B 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 ₩24,437 a share)Now 0.85× | ₩20,2130.83× | ₩34,2621.40× | ₩47,6181.95× |
| Price / earnings (last 12 months: ₩5,192 a share)Now 4.01× | ₩31,6176.09× | ₩121,68223.4× | ₩201,94438.9× |
| P/E on run-rate earnings (Q2 2026 × 4: ₩3,233 a share)Now 6.43× | ₩19,6856.09× | ₩75,76223.4× | ₩125,73638.9× |
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% |
|---|---|---|---|---|---|
| 6.8% | — | — | — | — | — |
| 7.3% | — | — | — | — | — |
| 7.8% | — | — | — | — | — |
| 8.3% | — | — | — | — | — |
| 8.8% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩449B
- Enterprise value
- ₩523B
- P/E
- 4.0×
- P/B
- 0.9×
- P/S
- 0.4×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩25,700 | ₩11,790 | ₩28,300 | ₩21,250 | ₩25,050 |
| Market cap | ₩555B | ₩255B | ₩611B | ₩459B | ₩541B |
| P/E | 11.8× | 15.3× | — | — | 25.1× |
| P/B | 1.2× | 0.6× | 1.6× | 1.3× | 1.8× |
| P/S | 0.7× | 0.4× | 1.2× | 1.6× | 1.6× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | — | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Jahwa Electronics | 4.0× | 0.9× | 0.4× | — | 0.0% |
| Samsung Electro-Mechanics | 89.0× | 8.8× | 7.2× | — | 0.2% |
| Doosan | 36.8× | 5.2× | 0.7× | — | 0.4% |
| Hanwha Systems | 67.9× | 2.7× | 2.9× | — | 0.8% |
| LG Innotek | 13.4× | 1.4× | 0.4× | — | 0.5% |
| Isupetasys | 32.5× | 7.6× | 5.0× | — | 0.0% |
| Daeduck Electronics | 41.5× | 6.5× | 4.7× | — | 0.4% |
| Similar companies (median) | 39.2× | 5.8× | 3.8× | — | 0.4% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Jahwa Electronics / 자화전자 / 033240 / KRX:033240
Source: KRX statistical information