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SeouLin Bioscience

038070 · KOSDAQ · ₩038070 · 서린바이오

₩3,595▼ ₩80 (2.18%)End-of-day · Oct 26, 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

₩1,515

vs the current price (₩3,595)

Enterprise value
₩19B
Equity value
₩14B
WACC
7.0%

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 58% 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 ₩3,595, the model needs an operating margin of 5.3% every year (it uses 3.3%).
  • Margins ranged from 0.9% to 9.0% 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.
  • 60% 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 36.5× against a typical 20.8× 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
₩1,515
−57.9%
Bull
₩4,929
+37.1%

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 (3.3%).

Revenue growth

  • -9%

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

    Default: the last 3 years' revenue growth (-9% a year, annual reports), fading to 3% by year 5.

  • -6%

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

    Default: the last 3 years' revenue growth (-9% 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 (-9% 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 (-9% 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 (-9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.3%

    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.

  • 1.5%

    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).

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • 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.

  • 4.03%

    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 0.26, 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)
₩83B
Net debt (borrowings and leases − cash and deposits)
₩4B
+ Stakes and investments
₩719M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.8B
Shares
9,300,676
Share price
₩3,595
Market cap
₩33B

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₩90B₩75B₩77B₩76B₩71B₩69B₩69B₩71B
Growth−12.5%−15.8%2.2%−9.0%−6.0%−3.0%0.0%3.0%
EBIT₩2.5B₩953M₩692M₩2.5B₩2.3B₩2.3B₩2.3B₩2.3B
EBIT margin2.8%1.3%0.9%3.3%3.3%3.3%3.3%3.3%
After-tax EBIT₩1.8B₩691M₩501M₩1.8B₩1.7B₩1.7B₩1.7B₩1.7B
+ Depreciation₩1.2B₩1.3B₩1.1B₩1.1B₩1.1B₩1B₩1B₩1.1B
− Capital spending———₩3B₩2.8B₩2.8B₩2.8B₩2.8B
− Working capital−₩12B₩4.3B₩628M−₩3B−₩1.8B−₩854M₩0₩828M
Free cash flow———₩2.9B₩1.7B₩779M−₩74M−₩904M
Discount factor———0.9350.8740.8170.7630.714
Present value———₩2.7B₩1.5B₩637M−₩57M−₩645M

Terminal value ₩21B, worth ₩15B today: 78% 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 ₩9,010 a share)Now 0.40×₩6,0400.67×₩8,7070.97×₩16,8471.87×
Price / earnings (last 12 months: ₩99 a share)Now 36.5×₩8348.46×₩2,04820.8×₩3,89539.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩147 a share)Now 24.4×₩1,2458.46×₩3,05820.8×₩5,81739.5×

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%
6.0%₩2,044₩2,035₩2,021₩2,000₩1,968
6.5%₩1,802₩1,775₩1,740₩1,692₩1,629
7.0%₩1,601₩1,563₩1,515₩1,454₩1,375
7.5%₩1,432₩1,387₩1,332₩1,264₩1,179
8.0%₩1,288₩1,239₩1,181₩1,109₩1,022

Now (TTM)

Market cap
₩33B
Enterprise value
₩37B
P/E
36.5×
P/B
0.4×
P/S
0.4×
EV/EBITDA
23.3×
Dividend yield
2.8%

Over time (at each year end)

20252024202320222021
Price₩6,510₩7,110₩9,200₩11,650₩21,350
Market cap₩61B₩66B₩86B₩108B₩199B
P/E82.7×22.7×—11.4×12.7×
P/B0.7×0.8×1.0×1.3×2.7×
P/S0.8×0.9×1.0×1.1×2.5×
EV/EBITDA34.7×27.2×21.0×12.4×23.9×
Dividend yield1.5%1.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SeouLin Bioscience36.5×0.4×0.4×23.3×2.8%
Samsung C&T17.0×0.4×1.1×—1.0%
POSCO International10.5×1.2×0.3×—3.7%
Youngone5.1×0.7×0.7×—3.1%
ISC38.4×5.1×10.7×—0.6%
Dong SUH Companies18.8×1.6×5.1×—4.2%
SK Gas7.3×0.6×0.3×—3.6%
Similar companies (median)13.7×1.0×0.9×—3.4%

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

Also known as: SeouLin Bioscience / 서린바이오 / 038070 / KRX:038070

Source: KRX statistical information