KOSPI · 033920 · Food & Beverage · ₩033920

Muhak무학

033920 · KOSPI · ₩033920 · 무학

₩7,140▼ ₩30 (0.42%)End-of-day · Oct 26, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩3,137

vs the current price (₩7,140)

Enterprise value: ₩175B
Equity value: ₩89B
WACC: 6.4%

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 56% 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 ₩7,140, the model needs an operating margin of 13.3% every year (it uses 8.2%).
Or revenue growth +11.1 points a year higher than assumed in each of the 5 years.
Margins ranged from −0.7% to 11.1% 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.
87% 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.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 6.1× against a typical 4.3× 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: ₩295; −95.9%
Base: ₩3,137; −56.1%
Bull: ₩8,331; +16.7%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (8.2%).

Revenue growth

Revenue growth, year 1-2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 30.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.2%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation10%
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).
Capital spending8%
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).
Working capital-10%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
Beta0.6
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 0.17, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.53%
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): ₩141B
Net debt (borrowings and leases − cash and deposits): ₩85B
Shares: 28,500,000
Share price: ₩7,140
Market cap: ₩203B

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	₩147B	₩152B	₩144B	₩138B	₩137B	₩138B	₩140B	₩145B
Growth	−4.1%	3.7%	−5.4%	−2.0%	−0.8%	0.5%	1.7%	3.0%
EBIT	₩16B	₩17B	₩10B	₩11B	₩11B	₩11B	₩12B	₩12B
EBIT margin	11.0%	11.1%	7.1%	8.2%	8.2%	8.2%	8.2%	8.2%
After-tax EBIT	₩12B	₩12B	₩7.4B	₩8.2B	₩8.2B	₩8.2B	₩8.3B	₩8.6B
+ Depreciation	₩14B	₩15B	₩15B	₩14B	₩14B	₩14B	₩14B	₩14B
− Capital spending	₩10B	₩16B	₩9.7B	₩11B	₩11B	₩11B	₩11B	₩12B
− Working capital	₩2.9B	−₩3.7B	₩11B	₩283M	₩111M	−₩69M	−₩235M	−₩421M
Free cash flow	₩13B	₩15B	₩1.8B	₩11B	₩11B	₩11B	₩11B	₩12B
Discount factor	—	—	—	0.940	0.884	0.831	0.782	0.735
Present value	—	—	—	₩10B	₩9.6B	₩9.2B	₩8.9B	₩8.8B

Terminal value ₩174B, worth ₩128B today: 73% 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 ₩21,831 a share)Now 0.33×	₩6,3420.29×	₩7,3910.34×	₩9,8290.45×
Price / earnings (last 12 months: ₩1,177 a share)Now 6.07×	₩2,6402.24×	₩5,0484.29×	₩7,1406.07×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,585 a share)Now 1.99×	₩8,0432.24×	₩15,3834.29×	₩21,7576.07×

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%
5.4%	₩3,264	₩3,935	₩4,808	₩5,987	₩7,669
5.9%	₩2,673	₩3,200	₩3,865	₩4,729	₩5,897
6.4%	₩2,191	₩2,615	₩3,137	₩3,796	₩4,651
6.9%	₩1,790	₩2,138	₩2,558	₩3,075	₩3,727
7.4%	₩1,451	₩1,741	₩2,086	₩2,502	₩3,014

Now (TTM)

Market cap: ₩203B
Enterprise value: ₩287B
P/E: 6.1×
P/B: 0.3×
P/S: 1.4×
EV/EBITDA: 13.9×
Dividend yield: 7.3%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,450	₩6,320	₩5,360	₩4,935	₩8,350
Market cap	₩269B	₩180B	₩153B	₩141B	₩238B
P/E	5.4×	3.7×	2.3×	—	—
P/B	0.4×	0.3×	0.3×	0.3×	0.5×
P/S	1.9×	1.2×	1.0×	0.9×	1.9×
EV/EBITDA	—	—	—	5.1×	15.1×
Dividend yield	5.5%	8.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Muhak	6.1×	0.3×	1.4×	13.9×	7.3%
Samyang Foods	17.2×	5.5×	3.1×	—	0.4%
Orion	10.7×	1.1×	1.2×	5.3×	3.1%
CJ Cheiljedang	—	0.3×	0.1×	—	3.5%
Nongshim	12.1×	0.8×	0.7×	—	1.5%
Otoki	17.0×	0.6×	0.3×	—	2.9%
Hite Jinro	23.6×	1.0×	0.5×	6.4×	4.4%
Similar companies (median)	17.0×	0.9×	0.6×	5.9×	3.0%

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

Also known as: Muhak / 무학 / 033920 / KRX:033920

Source: KRX statistical information