Ask Warren

BioSmart

038460 · KOSDAQ · ₩038460 · 바이오스마트

₩2,495▲ ₩35 (1.42%)End-of-day · Oct 28, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩11,650

vs the current price (₩2,495)

Enterprise value
₩330B
Equity value
₩294B
WACC
6.0%

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 367% 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 ₩2,495, the model needs an operating margin of 2.0% every year (it uses 3.9%).
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
  • Today's P/E is 4.7× against a typical 15.0× 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
₩1,000
−59.9%
Base
₩11,650
+366.9%
Bull
₩33,597
+1,246.6%

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 (3.9%).

Revenue growth

  • 7.2%

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

    Default: the last 3 years' revenue growth (7.2% a year, annual reports), fading to 3% by year 5.

  • 6.2%

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

    Default: the last 3 years' revenue growth (7.2% a year, annual reports), fading to 3% by year 5.

  • 5.1%

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

    Default: the last 3 years' revenue growth (7.2% a year, annual reports), fading to 3% by year 5.

  • 4.1%

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

    Default: the last 3 years' revenue growth (7.2% 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 (7.2% 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.

  • 1.3%

    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).

  • 3.3%

    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).

  • 15.7%

    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.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 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 0.07, 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.

  • 5.61%

    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)
₩563B
Net debt (borrowings and leases − cash and deposits)
₩46B
+ Stakes and investments
₩58B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩47B
Shares
25,274,542
Share price
₩2,495
Market cap
₩63B

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₩456B₩484B₩483B₩603B₩641B₩673B₩701B₩722B
Growth16.4%6.2%−0.3%7.2%6.2%5.1%4.1%3.0%
EBIT₩10B₩20B₩23B₩24B₩25B₩26B₩27B₩28B
EBIT margin2.2%4.2%4.7%3.9%3.9%3.9%3.9%3.9%
After-tax EBIT₩7.3B₩15B₩16B₩17B₩18B₩19B₩20B₩20B
+ Depreciation₩4.8B₩7.2B₩6.6B₩7.8B₩8.3B₩8.8B₩9.1B₩9.4B
− Capital spending₩4.9B₩8.7B₩34B₩20B₩21B₩22B₩23B₩24B
− Working capital₩16B₩17B−₩2.2B₩6.4B₩5.9B₩5.1B₩4.3B₩3.3B
Free cash flow−₩8.4B−₩3.6B−₩8.6B−₩1.4B−₩571M₩442M₩1.5B₩2.7B
Discount factor———0.9430.8900.8400.7920.747
Present value———−₩1.3B−₩508M₩371M₩1.2B₩2B

Terminal value ₩439B, worth ₩328B today: 99% 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 ₩5,938 a share)Now 0.42×₩3,0490.51×₩4,7860.81×₩7,3681.24×
Price / earnings (last 12 months: ₩534 a share)Now 4.68×₩3,0755.76×₩8,02115.0×₩22,64942.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩167 a share)Now 15.0×₩9605.76×₩2,50315.0×₩7,06942.4×

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%
5.0%₩13,041₩14,668₩16,832₩19,856₩24,387
5.5%₩11,140₩12,334₩13,866₩15,903₩18,749
6.0%₩9,626₩10,528₩11,650₩13,090₩15,003
6.5%₩8,395₩9,089₩9,935₩10,988₩12,338
7.0%₩7,374₩7,919₩8,569₩9,361₩10,347

Now (TTM)

Market cap
₩63B
Enterprise value
₩105B
P/E
4.7×
P/B
0.4×
P/S
0.1×
EV/EBITDA
3.1×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,900₩3,080₩3,425₩3,330₩5,710
Market cap₩99B₩78B₩87B₩84B₩144B
P/E10.9×612.1×4.8×116.7×103.6×
P/B0.7×0.6×0.8×0.9×1.5×
P/S0.2×0.2×0.2×0.2×0.8×
EV/EBITDA4.8×4.2×9.4×7.4×14.8×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
BioSmart4.7×0.4×0.1×3.1×0.0%
Samsung Electro-Mechanics96.8×9.5×7.8×—0.2%
Doosan39.2×5.5×0.7×—0.4%
Hanwha Systems71.2×2.8×3.0×—0.8%
LG Innotek13.1×1.4×0.4×—0.5%
Isupetasys35.4×8.3×5.4×—0.0%
Daeduck Electronics44.8×7.0×5.0×—0.4%
Similar companies (median)42.0×6.3×4.0×—0.4%

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

Also known as: BioSmart / 바이오스마트 / 038460 / KRX:038460

Source: KRX statistical information