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Korea United Pharm

033270 · KOSPI · ₩033270 · 유나이티드제약

₩16,760▲ ₩490 (3.01%)End-of-day · Oct 28, 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

₩41,837

vs the current price (₩16,760)

Enterprise value
₩629B
Equity value
₩666B
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 150% 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 ₩16,760, the model needs an operating margin of 8.6% every year (it uses 17.9%).
  • Or revenue growth −28.3 points a year higher than assumed in each of the 5 years.
  • 52% 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 3.6× against a typical 8.2× 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
₩27,682
+65.2%
Base
₩41,837
+149.6%
Bull
₩65,672
+291.8%

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 (17.9%).

Revenue growth

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.2% 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 (3.2% a year, annual reports), fading to 3% by year 5.

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.2% 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 (3.2% a year, annual reports), fading to 3% by year 5.

Business

  • 17.9%

    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.

  • 3.7%

    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).

  • 9.1%

    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).

  • 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.

  • 4.08%

    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 0.04, 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)
₩298B
Net debt (borrowings and leases − cash and deposits)
−₩27B
+ Stakes and investments
₩9.7B
Associates, long-term financial assets and deposits (book value)
Shares
15,910,775
Share price
₩16,760
Market cap
₩267B

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₩279B₩289B₩289B₩308B₩317B₩327B₩337B₩348B
Growth6.3%3.5%0.0%3.2%3.2%3.1%3.1%3.0%
EBIT₩55B₩56B₩50B₩55B₩57B₩59B₩60B₩62B
EBIT margin19.7%19.5%17.2%17.9%17.9%17.9%17.9%17.9%
After-tax EBIT₩40B₩41B₩36B₩40B₩41B₩42B₩44B₩45B
+ Depreciation₩9.7B₩11B₩11B₩11B₩12B₩12B₩12B₩13B
− Capital spending₩31B₩21B₩25B₩28B₩29B₩30B₩31B₩32B
− Working capital₩23B−₩12B₩18B₩3.8B₩3.9B₩3.9B₩4.1B₩4B
Free cash flow−₩4.8B₩42B₩4B₩19B₩20B₩21B₩22B₩22B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩18B₩17B₩17B₩16B₩16B

Terminal value ₩778B, worth ₩545B today: 87% 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 ₩31,244 a share)Now 0.54×₩21,7050.69×₩30,6780.98×₩48,8501.56×
Price / earnings (last 12 months: ₩4,703 a share)Now 3.56×₩32,6576.94×₩38,4338.17×₩119,52725.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩5,964 a share)Now 2.81×₩41,4086.94×₩48,7328.17×₩151,55725.4×

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%₩44,476₩47,773₩51,816₩56,891₩63,459
6.9%₩40,499₩43,137₩46,309₩50,198₩55,081
7.4%₩37,155₩39,300₩41,837₩44,887₩48,627
7.9%₩34,306₩36,073₩38,134₩40,574₩43,506
8.4%₩31,851₩33,323₩35,021₩37,002₩39,347

Now (TTM)

Market cap
₩267B
Enterprise value
₩239B
P/E
3.6×
P/B
0.5×
P/S
0.9×
EV/EBITDA
3.9×
Dividend yield
3.6%

Over time (at each year end)

20252024202320222021
Price₩19,070₩18,210₩27,000₩22,750₩47,350
Market cap₩303B₩290B₩430B₩362B₩753B
P/E7.9×8.9×8.9×8.0×26.3×
P/B0.7×0.7×1.1×1.1×2.5×
P/S1.1×1.0×1.5×1.4×3.4×
EV/EBITDA4.5×4.0×6.9×6.4×18.0×
Dividend yield3.2%2.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea United Pharm3.6×0.5×0.9×3.9×3.6%
Samsung Biologics32.0×7.6×14.0×—0.0%
Celltrion27.9×2.5×9.0×—0.0%
Alteogen80.5×29.0×61.2×—0.1%
SK biopharmaceuticals14.7×5.8×6.8×—0.0%
Yuhan24.0×2.4×2.5×31.3×0.8%
HLB—15.7×55.6×—0.0%
Similar companies (median)27.9×6.7×11.5×31.3×0.0%

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

Also known as: Korea United Pharm / 유나이티드제약 / 033270 / KRX:033270

Source: KRX statistical information