KOSDAQ · 041910 · Biotech & Pharma · ₩041910

Polaris AI Pharma폴라리스AI파마

041910 · KOSDAQ · ₩041910 · 폴라리스AI파마

₩5,570▼ ₩110 (1.94%)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

₩3,076

vs the current price (₩5,570)

Enterprise value: ₩30B
Equity value: ₩41B
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 45% 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 ₩5,570, the model needs an operating margin of 10.3% every year (it uses 5.6%).
Or revenue growth +38.3 points a year higher than assumed in each of the 5 years.
Margins ranged from 0.3% to 8.3% 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.
84% 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 6.4× against a typical 22.0× 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: ₩1,900; −65.9%
Base: ₩3,076; −44.8%
Bull: ₩5,260; −5.6%

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 (5.6%).

Revenue growth

Revenue growth, year 1-3.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-0.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.6% 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 (-3.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin5.6%
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 & amortisation3.1%
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).
Capital spending3.9%
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 capital40%
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 0.11, 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): ₩57B
Net debt (borrowings and leases − cash and deposits): −₩1.3B
+ Stakes and investments: ₩9.4B; Associates, long-term financial assets and deposits (book value)
Shares: 13,283,350
Share price: ₩5,570
Market cap: ₩74B

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	₩64B	₩60B	₩56B	₩55B	₩54B	₩54B	₩55B	₩56B
Growth	3.5%	−7.2%	−6.8%	−3.6%	−2.0%	−0.3%	1.3%	3.0%
EBIT	₩5.3B	₩176M	₩3.2B	₩3.1B	₩3B	₩3B	₩3.1B	₩3.2B
EBIT margin	8.3%	0.3%	5.7%	5.6%	5.6%	5.6%	5.6%	5.6%
After-tax EBIT	₩3.9B	₩128M	₩2.3B	₩2.2B	₩2.2B	₩2.2B	₩2.2B	₩2.3B
+ Depreciation	—	—	—	₩1.7B	₩1.7B	₩1.7B	₩1.7B	₩1.7B
− Capital spending	₩1B	₩5.4B	₩555M	₩2.2B	₩2.1B	₩2.1B	₩2.1B	₩2.2B
− Working capital	₩1.9B	−₩5.2B	₩4.1B	−₩826M	−₩442M	−₩65M	₩281M	₩657M
Free cash flow	—	—	—	₩2.6B	₩2.2B	₩1.8B	₩1.5B	₩1.2B
Discount factor	—	—	—	0.932	0.868	0.809	0.753	0.702
Present value	—	—	—	₩2.4B	₩1.9B	₩1.5B	₩1.1B	₩829M

Terminal value ₩32B, worth ₩22B today: 74% 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 ₩11,132 a share)Now 0.50×	₩6,4880.58×	₩8,4680.76×	₩11,3991.02×
Price / earnings (last 12 months: ₩874 a share)Now 6.37×	₩6,7757.75×	₩19,23022.0×	₩59,52768.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩932 a share)Now 5.98×	₩7,2227.75×	₩20,49822.0×	₩63,45368.1×

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%	₩3,390	₩3,474	₩3,577	₩3,705	₩3,870
6.8%	₩3,171	₩3,230	₩3,301	₩3,386	₩3,492
7.3%	₩2,986	₩3,028	₩3,076	₩3,133	₩3,201
7.8%	₩2,829	₩2,858	₩2,890	₩2,927	₩2,970
8.3%	₩2,694	₩2,712	₩2,733	₩2,756	₩2,782

Now (TTM)

Market cap: ₩74B
Enterprise value: ₩72B
P/E: 6.4×
P/B: 0.5×
P/S: 1.3×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩6,230	₩5,360	₩6,900	₩7,090	₩9,600
Market cap	₩83B	₩71B	₩92B	₩94B	₩128B
P/E	13.4×	18.0×	24.0×	—	24.8×
P/B	0.6×	0.6×	0.8×	0.8×	1.1×
P/S	1.5×	1.2×	1.4×	1.5×	2.1×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Polaris AI Pharma	6.4×	0.5×	1.3×	—	0.0%
Samsung Biologics	33.9×	8.0×	14.8×	—	0.0%
Celltrion	28.0×	2.5×	9.0×	—	0.0%
Alteogen	78.8×	28.4×	59.9×	—	0.2%
Yuhan	25.4×	2.5×	2.6×	33.2×	0.7%
SK biopharmaceuticals	14.8×	5.8×	6.9×	—	0.0%
HLB	—	15.2×	53.6×	—	0.0%
Similar companies (median)	28.0×	6.9×	11.9×	33.2×	0.0%

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

Also known as: Polaris AI Pharma / 폴라리스AI파마 / 041910 / KRX:041910

Source: KRX statistical information