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035000 · KOSPI · ₩035000 · HS애드

₩6,170 ₩0 (0.00%)End-of-day · Oct 27, 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

₩21,583

vs the current price (₩6,170)

Enterprise value
₩299B
Equity value
₩350B
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 250% 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 ₩6,170, the model needs an operating margin of 1.1% every year (it uses 5.2%).
  • Today's P/E is 5.4× against a typical 6.4× 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
₩11,987
+94.3%
Base
₩21,583
+249.8%
Bull
₩38,600
+525.6%

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 (5.2%).

Revenue growth

  • -3%

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

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

  • -1.5%

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

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

  • -0%

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

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

  • 1.5%

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

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

Business

  • 5.2%

    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.

  • 1.8%

    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).

  • 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).

  • 14.8%

    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.

  • 4.03%

    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.

  • 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 0.09, 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.

  • 5.53%

    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)
₩479B
Net debt (borrowings and leases − cash and deposits)
−₩49B
+ Stakes and investments
₩2.3B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩22M
Shares
16,207,644
Share price
₩6,170
Market cap
₩100B

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₩548B₩555B₩484B₩465B₩458B₩458B₩464B₩478B
Growth3.4%1.2%−12.8%−3.0%−1.5%0.0%1.5%3.0%
EBIT₩26B₩30B₩27B₩24B₩24B₩24B₩24B₩25B
EBIT margin4.8%5.3%5.7%5.2%5.2%5.2%5.2%5.2%
After-tax EBIT₩19B₩21B₩20B₩18B₩17B₩17B₩18B₩18B
+ Depreciation₩8.4B₩9.6B₩11B₩8.4B₩8.2B₩8.2B₩8.4B₩8.6B
− Capital spending—₩4.8B₩5.9B₩4.6B₩4.6B₩4.6B₩4.6B₩4.8B
− Working capital−₩39B₩31B₩45B−₩2.1B−₩1B₩0₩1B₩2.1B
Free cash flow—−₩5.1B−₩20B₩23B₩22B₩21B₩20B₩20B
Discount factor———0.9320.8680.8090.7530.702
Present value———₩22B₩19B₩17B₩15B₩14B

Terminal value ₩301B, worth ₩212B today: 71% 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 ₩12,378 a share)Now 0.50×₩7,0050.57×₩7,3800.60×₩9,3690.76×
Price / earnings (last 12 months: ₩1,143 a share)Now 5.40×₩5,9985.25×₩7,2636.36×₩10,4759.17×
P/E on run-rate earnings (Q2 2026 × 4: ₩680 a share)Now 9.07×₩3,5705.25×₩4,3226.36×₩6,2349.17×

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%₩22,825₩24,030₩25,509₩27,370₩29,785
6.8%₩21,239₩22,195₩23,345₩24,756₩26,532
7.3%₩19,902₩20,672₩21,583₩22,679₩24,026
7.8%₩18,759₩19,387₩20,121₩20,989₩22,034
8.3%₩17,769₩18,288₩18,887₩19,585₩20,412

Now (TTM)

Market cap
₩100B
Enterprise value
₩42B
P/E
5.4×
P/B
0.5×
P/S
0.2×
EV/EBITDA
1.1×
Dividend yield
8.9%

Over time (at each year end)

20252024202320222021
Price₩8,760₩6,340₩6,230₩5,900₩7,050
Market cap₩142B₩103B₩101B₩96B₩114B
P/E8.2×4.5×6.2×5.5×6.6×
P/B0.7×0.5×0.6×0.5×0.7×
P/S0.3×0.2×0.2×0.2×0.2×
EV/EBITDA2.4×0.4×—1.3×2.1×
Dividend yield6.3%8.7%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
HS Ad5.4×0.5×0.2×1.1×8.9%
S-123.7×2.1×1.3×—0.0%
Cheil Worldwide9.9×1.4×0.5×—6.5%
Doosan Tesna54.8×4.2×5.7×—0.2%
Lotte Tour Development15.6×2.2×1.1×—0.0%
Soulbrain Holdings1.3×0.4×1.2×—1.3%
Innocean Worldwide5.4×0.6×0.3×—6.8%
Similar companies (median)12.8×1.7×1.2×—0.7%

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

Also known as: HS Ad / HS애드 / 035000 / KRX:035000

Source: KRX statistical information