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LG H&H

051900 · KOSPI · ₩051900 · LG생활건강

₩257,000▼ ₩500 (0.19%)End-of-day · Oct 27, 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

₩369,538

vs the current price (₩257,000)

Enterprise value
₩5.1T
Equity value
₩6.3T
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 44% 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 ₩257,000, the model needs an operating margin of 4.2% every year (it uses 6.7%).
  • Or revenue growth −11.8 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 2.7% to 15.9% 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
₩231,890
−9.8%
Base
₩369,538
+43.8%
Bull
₩607,855
+136.5%

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 (6.7%).

Revenue growth

  • -4%

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

    Default: the last 3 years' revenue growth (-4% a year, annual reports), fading to 3% by year 5.

  • -2.3%

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

    Default: the last 3 years' revenue growth (-4% a year, annual reports), fading to 3% by year 5.

  • -0.5%

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

    Default: the last 3 years' revenue growth (-4% a year, annual reports), fading to 3% by year 5.

  • 1.2%

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

    Default: the last 3 years' revenue growth (-4% 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 (-4% a year, annual reports), fading to 3% by year 5.

Business

  • 6.7%

    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.

  • 3.3%

    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).

  • 2%

    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).

  • 8.3%

    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.

  • 4.03%

    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.

  • 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 0.06, 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.

  • 5.53%

    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)
₩6.3T
Net debt (borrowings and leases − cash and deposits)
−₩1.3T
+ Stakes and investments
₩58B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩119B
Shares
17,071,782
incl. 2,096,259 preferred
Share price
₩257,000
Market cap
₩4T

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₩6.8T₩6.8T₩6.4T₩6T₩5.9T₩5.9T₩5.9T₩6.1T
Growth−5.3%0.1%−6.7%−4.0%−2.3%−0.5%1.2%3.0%
EBIT₩487B₩459B₩171B₩404B₩395B₩393B₩398B₩410B
EBIT margin7.2%6.7%2.7%6.7%6.7%6.7%6.7%6.7%
After-tax EBIT₩353B₩333B₩124B₩293B₩286B₩285B₩288B₩297B
+ Depreciation₩232B₩221B₩201B₩199B₩195B₩194B₩196B₩202B
− Capital spending₩164B₩147B₩95B₩121B₩118B₩117B₩119B₩122B
− Working capital−₩131B−₩26B₩26B−₩21B−₩12B−₩2.4B₩5.8B₩15B
Free cash flow₩552B₩432B₩205B₩392B₩375B₩364B₩360B₩362B
Discount factor———0.9320.8680.8090.7530.702
Present value———₩366B₩325B₩294B₩271B₩254B

Terminal value ₩5.1T, worth ₩3.6T today: 70% 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 ₩331,326 a share)Now 0.78×₩263,6420.80×₩359,9041.09×₩900,7282.72×
P/E on run-rate earnings (Q2 2026 × 4: ₩17,302 a share)Now 14.9×₩313,34618.1×₩600,91034.7×₩780,89845.1×

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%₩383,950₩405,823₩432,719₩466,606₩510,630
6.8%₩359,028₩376,648₩397,892₩424,015₩456,928
7.3%₩337,998₩352,425₩369,538₩390,171₩415,543
7.8%₩320,007₩331,983₩345,994₩362,615₩382,654
8.3%₩304,434₩314,492₩326,123₩339,731₩355,873

Now (TTM)

Market cap
₩3.8T
Enterprise value
₩2.6T
P/E
—
P/B
0.7×
P/S
0.6×
EV/EBITDA
6.8×
Dividend yield
0.8%

Over time (at each year end)

20252024202320222021
Price₩258,500₩305,000₩355,000₩722,000₩1,097,000
Market cap₩3.9T₩4.6T₩5.3T₩11T₩16T
P/E—24.1×37.2×45.7×19.5×
P/B0.7×0.8×1.0×2.0×3.0×
P/S0.6×0.7×0.8×1.5×2.0×
EV/EBITDA7.4×5.2×6.3×10.9×10.5×
Dividend yield0.8%1.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
LG H&H—0.7×0.6×6.8×0.8%
APR24.1×16.1×4.5×23.7×1.8%
Amorepacific25.4×1.3×1.6×—1.0%
Cosmax16.2×4.6×1.1×13.8×1.3%
Kolmar Korea15.0×2.8×0.9×—0.7%
d'Alba Global16.8×7.2×2.9×—1.8%
Amorepacific Holdings12.9×0.5×0.4×—1.7%
Similar companies (median)16.5×3.7×1.4×18.8×1.5%

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

Also known as: LG H&H / LG생활건강 / 051900 / KRX:051900

Source: KRX statistical information