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Hanyang ENG

045100 · KOSDAQ · ₩045100 · 한양이엔지

₩28,100▲ ₩900 (3.31%)End-of-day · Oct 28, 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

₩54,710

vs the current price (₩28,100)

Enterprise value
₩772B
Equity value
₩957B
WACC
8.1%

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 95% 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 ₩28,100, the model needs an operating margin of 3.2% every year (it uses 6.4%).
  • Or revenue growth −19.8 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 7.7× against a typical 4.4× 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
₩30,797
+9.6%
Base
₩54,710
+94.7%
Bull
₩94,672
+236.9%

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 (6.4%).

Revenue growth

  • -1.3%

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

    Default: the last 3 years' revenue growth (-1.3% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-1.3% a year, annual reports), fading to 3% by year 5.

  • 0.9%

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

    Default: the last 3 years' revenue growth (-1.3% a year, annual reports), fading to 3% by year 5.

  • 1.9%

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

    Default: the last 3 years' revenue growth (-1.3% 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 (-1.3% a year, annual reports), fading to 3% by year 5.

Business

  • 6.4%

    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.

  • 1.2%

    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).

  • 3.6%

    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).

  • 3.4%

    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.

  • 0.73

    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 0.59, 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)
₩1.3T
Net debt (borrowings and leases − cash and deposits)
−₩153B
+ Stakes and investments
₩37B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩4.3B
Shares
17,500,000
Share price
₩28,100
Market cap
₩492B

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₩1T₩1.2T₩1.1T₩1.2T₩1.2T₩1.2T₩1.3T₩1.3T
Growth−11.8%15.6%−5.7%−1.3%−0.2%0.9%1.9%3.0%
EBIT₩85B₩86B₩54B₩79B₩79B₩80B₩81B₩84B
EBIT margin8.3%7.3%4.8%6.4%6.4%6.4%6.4%6.4%
After-tax EBIT₩62B₩62B₩39B₩57B₩57B₩58B₩59B₩61B
+ Depreciation₩11B₩13B₩16B₩15B₩15B₩15B₩15B₩16B
− Capital spending₩26B₩47B₩48B₩45B₩45B₩45B₩46B₩47B
− Working capital−₩82B−₩16B₩123B−₩555M−₩84M₩378M₩806M₩1.3B
Free cash flow₩130B₩44B−₩117B₩28B₩28B₩28B₩28B₩28B
Discount factor———0.9250.8560.7920.7320.678
Present value———₩26B₩24B₩22B₩20B₩19B

Terminal value ₩975B, worth ₩661B today: 86% 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 ₩40,353 a share)Now 0.70×₩20,1330.50×₩23,5010.58×₩31,4450.78×
Price / earnings (last 12 months: ₩3,651 a share)Now 7.70×₩12,6363.46×₩15,9364.36×₩33,0499.05×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,934 a share)Now 5.70×₩17,0753.46×₩21,5344.36×₩44,6599.05×

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%
7.1%₩56,588₩60,164₩64,439₩69,644₩76,116
7.6%₩52,670₩55,637₩59,133₩63,313₩68,401
8.1%₩49,315₩51,809₩54,710₩58,128₩62,215
8.6%₩46,412₩48,530₩50,968₩53,805₩57,147
9.1%₩43,877₩45,693₩47,765₩50,149₩52,923

Now (TTM)

Market cap
₩492B
Enterprise value
₩339B
P/E
7.7×
P/B
0.7×
P/S
0.4×
EV/EBITDA
3.8×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩21,350₩16,570₩15,500₩14,450₩16,850
Market cap₩374B₩290B₩271B₩253B₩295B
P/E8.9×3.8×3.5×3.6×6.4×
P/B0.6×0.5×0.5×0.5×0.7×
P/S0.3×0.2×0.3×0.2×0.3×
EV/EBITDA3.4×0.1×0.3×1.6×2.9×
Dividend yield0.0%3.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hanyang ENG7.7×0.7×0.4×3.8×0.0%
Samsung E&A19.0×2.5×1.3×—1.2%
HD Hyundai Marine Solution23.4×8.8×3.6×—2.3%
KEPCO Engineering & Construction102.2×6.2×6.9×50.8×1.4%
POSCO DX94.1×5.3×3.1×—0.0%
SemiFive—2.2×4.0×—0.0%
Korea Electronic Power Industrial Development69.7×3.1×0.8×—0.0%
Similar companies (median)69.7×4.2×3.3×50.8×0.6%

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

Also known as: Hanyang ENG / 한양이엔지 / 045100 / KRX:045100

Source: KRX statistical information