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Heerim Architects & Planners

037440 · KOSDAQ · ₩037440 · 희림

₩3,770▼ ₩70 (1.82%)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

₩8,348

vs the current price (₩3,770)

Enterprise value
₩124B
Equity value
₩116B
WACC
6.7%

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 121% 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 ₩3,770, the model needs an operating margin of 2.2% every year (it uses 3.9%).
  • Or revenue growth −17.7 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 6.9× against a typical 11.5× 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
₩2,154
−42.9%
Base
₩8,348
+121.4%
Bull
₩19,958
+429.4%

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 (3.9%).

Revenue growth

  • 1.6%

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

    Default: the last 3 years' revenue growth (1.6% a year, annual reports), fading to 3% by year 5.

  • 2%

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

    Default: the last 3 years' revenue growth (1.6% a year, annual reports), fading to 3% by year 5.

  • 2.3%

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

    Default: the last 3 years' revenue growth (1.6% a year, annual reports), fading to 3% by year 5.

  • 2.7%

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

    Default: the last 3 years' revenue growth (1.6% 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 (1.6% a year, annual reports), fading to 3% by year 5.

Business

  • 3.9%

    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.

  • 1.9%

    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).

  • 2.4%

    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).

  • 6.1%

    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 0.28, 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)
₩231B
Net debt (borrowings and leases − cash and deposits)
₩13B
+ Stakes and investments
₩5.3B
Associates, long-term financial assets and deposits (book value)
Shares
13,922,475
Share price
₩3,770
Market cap
₩52B

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₩229B₩241B₩232B₩235B₩239B₩245B₩251B₩259B
Growth3.4%5.4%−3.8%1.6%2.0%2.3%2.7%3.0%
EBIT₩7.4B₩15B₩9.1B₩9.2B₩9.3B₩9.6B₩9.8B₩10B
EBIT margin3.2%6.3%3.9%3.9%3.9%3.9%3.9%3.9%
After-tax EBIT₩5.3B₩11B₩6.6B₩6.6B₩6.8B₩6.9B₩7.1B₩7.3B
+ Depreciation———₩4.5B₩4.5B₩4.7B₩4.8B₩4.9B
− Capital spending₩1.4B₩2B₩13B₩5.6B₩5.7B₩5.9B₩6B₩6.2B
− Working capital−₩2.4B−₩12B₩5.7B₩225M₩286M₩336M₩403M₩460M
Free cash flow———₩5.2B₩5.3B₩5.4B₩5.5B₩5.6B
Discount factor———0.9370.8780.8230.7710.722
Present value———₩4.9B₩4.6B₩4.4B₩4.2B₩4B

Terminal value ₩141B, worth ₩102B today: 82% 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 ₩6,468 a share)Now 0.58×₩4,6320.72×₩8,3551.29×₩13,9862.16×
Price / earnings (last 12 months: ₩545 a share)Now 6.91×₩3,2035.87×₩6,27911.5×₩10,60919.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩577 a share)Now 6.53×₩3,3905.87×₩6,64411.5×₩11,22719.5×

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%
5.7%₩8,852₩9,710₩10,798₩12,221₩14,165
6.2%₩7,924₩8,596₩9,427₩10,480₩11,858
6.7%₩7,158₩7,696₩8,348₩9,152₩10,171
7.2%₩6,516₩6,954₩7,475₩8,106₩8,884
7.7%₩5,971₩6,332₩6,756₩7,260₩7,870

Now (TTM)

Market cap
₩52B
Enterprise value
₩53B
P/E
6.9×
P/B
0.6×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,615₩4,960₩7,720₩8,200₩6,860
Market cap₩64B₩69B₩107B₩114B₩96B
P/E8.2×5.3×17.4×16.0×15.4×
P/B0.7×0.8×1.5×1.7×1.6×
P/S0.3×0.3×0.5×0.5×0.5×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Heerim Architects & Planners6.9×0.6×0.2×—0.0%
Samsung E&A18.6×2.5×1.3×—1.3%
HD Hyundai Marine Solution22.1×8.3×3.4×—2.4%
KEPCO Engineering & Construction94.3×5.7×6.3×46.9×1.5%
POSCO DX90.9×5.2×3.0×—0.0%
Hanyang ENG7.5×0.7×0.4×3.7×0.0%
SemiFive—2.0×3.8×—0.0%
Similar companies (median)22.1×3.8×3.2×25.3×0.6%

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

Also known as: Heerim Architects & Planners / 희림 / 037440 / KRX:037440

Source: KRX statistical information