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Samhwa Networks

046390 · KOSDAQ · ₩046390 · 삼화네트웍스

₩1,996▼ ₩34 (1.67%)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

₩410

vs the current price (₩1,996)

Enterprise value
₩1.5B
Equity value
₩7.1B
WACC
7.4%

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 79% 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 ₩1,996, the model needs an operating margin of 9.0% every year (it uses 1.9%).
  • Margins ranged from −4.2% to 20.5% 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.

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
₩155
−92.2%
Base
₩410
−79.5%
Bull
₩952
−52.3%

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 (1.9%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-23.2% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-23.2% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-23.2% 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 (-23.2% 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 (-23.2% a year, annual reports), fading to 3% by year 5.

Business

  • 1.9%

    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.

  • 7%

    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).

  • 8.7%

    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).

  • 33.9%

    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 0.15, 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)
₩37B
Net debt (borrowings and leases − cash and deposits)
−₩1.6B
+ Stakes and investments
₩4B
Associates, long-term financial assets and deposits (book value)
Shares
17,269,173
Share price
₩1,996
Market cap
₩34B

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₩62B₩47B₩37B₩33B₩31B₩30B₩30B₩31B
Growth−24.2%−25.1%−20.2%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩1.8B₩671M−₩1.5B₩628M₩586M₩566M₩564M₩581M
EBIT margin−2.9%1.4%−4.2%1.9%1.9%1.9%1.9%1.9%
After-tax EBIT−₩1.3B₩486M−₩1.1B₩455M₩425M₩410M₩409M₩421M
+ Depreciation———₩2.3B₩2.2B₩2.1B₩2.1B₩2.1B
− Capital spending₩6.8B₩6.9B₩157M₩2.9B₩2.7B₩2.6B₩2.6B₩2.7B
− Working capital−₩15B−₩1.7B₩2.1B−₩1.2B−₩751M−₩366M−₩20M₩302M
Free cash flow———₩1.1B₩651M₩270M−₩76M−₩401M
Discount factor———0.9310.8670.8070.7510.700
Present value———₩1.1B₩565M₩218M−₩57M−₩280M

Terminal value −₩2.9M, worth −₩2M today: 0% 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 ₩3,207 a share)Now 0.62×₩2,1250.66×₩4,2301.32×₩11,6383.63×

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%
6.4%₩493₩456₩411₩353₩278
6.9%₩484₩451₩410₩360₩297
7.4%₩476₩446₩410₩366₩312
7.9%₩470₩442₩410₩371₩324
8.4%₩464₩439₩410₩375₩333

Now (TTM)

Market cap
₩34B
Enterprise value
₩33B
P/E
—
P/B
0.6×
P/S
0.9×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,978₩3,253₩5,030₩8,483₩7,695
Market cap₩51B₩56B₩87B₩146B₩133B
P/E—30.1×—10.6×20.7×
P/B0.9×1.0×1.5×2.5×3.0×
P/S1.4×1.2×1.4×1.8×4.0×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Samhwa Networks—0.6×0.9×—0.0%
HYBE—2.1×2.0×—0.3%
SM Entertainment14.0×1.8×1.4×—2.0%
JYP Entertainment13.1×2.2×1.7×7.3×2.2%
CJ CGV—1.1×0.4×—0.0%
YG Entertainment22.0×1.4×1.2×—0.8%
Studio Dragon21.9×0.9×1.2×—0.0%
Similar companies (median)17.9×1.6×1.3×7.3×0.5%

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

Also known as: Samhwa Networks / 삼화네트웍스 / 046390 / KRX:046390

Source: KRX statistical information