KOSPI · 047400 · Building materials · ₩047400

Union Materials유니온머티리얼

047400 · KOSPI · ₩047400 · 유니온머티리얼

₩746 ₩0 (0.00%)End-of-day · Oct 27, 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

With these assumptions the model gives no positive value.

Enterprise value: −₩13B
Equity value: −₩109B
WACC: 4.9%

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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩746, the model needs an operating margin of 7.0% every year (it uses 0.3%).
Margins ranged from −15.2% to 5.3% 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.

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: —
Bull: —

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 (0.3%).

Revenue growth

Revenue growth, year 1-6.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.9% 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 (-6.9% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin0.3%
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.
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 & amortisation6%
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).
Capital spending3%
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 rate4.11%
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.
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 0.23, 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)5.61%
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): ₩100B
Net debt (borrowings and leases − cash and deposits): ₩95B
+ Stakes and investments: ₩2M; Associates, long-term financial assets and deposits (book value)
Shares: 42,000,000
Share price: ₩746
Market cap: ₩31B

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	₩116B	₩108B	₩102B	₩93B	₩89B	₩87B	₩87B	₩90B
Growth	−7.7%	−7.0%	−5.9%	−6.9%	−4.4%	−1.9%	0.5%	3.0%
EBIT	−₩4.7B	−₩17B	₩5.4B	₩278M	₩266M	₩261M	₩262M	₩270M
EBIT margin	−4.0%	−15.2%	5.3%	0.3%	0.3%	0.3%	0.3%	0.3%
After-tax EBIT	−₩3.4B	−₩12B	₩3.9B	₩202M	₩193M	₩189M	₩190M	₩196M
+ Depreciation	₩9.3B	₩8.1B	₩2.4B	₩5.6B	₩5.3B	₩5.2B	₩5.2B	₩5.4B
− Capital spending	₩5.9B	₩983M	₩3.2B	₩2.8B	₩2.7B	₩2.6B	₩2.6B	₩2.7B
− Working capital	₩8B	−₩11B	−₩5.8B	−₩2.7B	−₩1.6B	−₩674M	₩174M	₩1B
Free cash flow	−₩7.9B	₩6.5B	₩9B	₩5.7B	₩4.5B	₩3.5B	₩2.6B	₩1.8B
Discount factor	—	—	—	0.953	0.909	0.866	0.826	0.787
Present value	—	—	—	₩5.5B	₩4.1B	₩3B	₩2.2B	₩1.5B

Terminal value −₩38B, worth −₩30B today: 221% 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 ₩433 a share)Now 1.72×	₩5901.36×	₩7531.74×	₩1,8784.34×

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%
3.9%	—	—	—	—	—
4.4%	—	—	—	—	—
4.9%	—	—	—	—	—
5.4%	—	—	—	—	—
5.9%	—	—	—	—	—

Now (TTM)

Market cap: ₩31B
Enterprise value: ₩126B
P/E: 6.2×
P/B: 1.7×
P/S: 0.3×
EV/EBITDA: 16.3×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩1,336	₩2,170	₩2,905	₩2,460	₩3,175
Market cap	₩56B	₩91B	₩122B	₩103B	₩133B
P/E	22.8×	—	—	—	245.3×
P/B	2.9×	5.9×	1.9×	1.2×	1.6×
P/S	0.6×	0.8×	1.0×	0.8×	1.1×
EV/EBITDA	18.4×	—	47.0×	22.3×	29.6×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Union Materials	6.2×	1.7×	0.3×	16.3×	0.0%
Tokai Carbon Korea	30.7×	4.3×	7.0×	—	0.7%
Hanilcementco	12.1×	0.7×	0.9×	—	6.0%
Wonik QnC	13.8×	1.2×	0.7×	—	0.5%
Sampyo Cement	16.9×	0.8×	0.9×	6.0×	2.2%
Hanil Holdings	9.5×	0.3×	0.3×	—	5.9%
IS Dongseo	5.2×	0.3×	0.4×	—	3.5%
Similar companies (median)	13.0×	0.7×	0.8×	6.0×	2.8%

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

Also known as: Union Materials / 유니온머티리얼 / 047400 / KRX:047400

Source: KRX statistical information