KOSDAQ · 052420 · Rubber & plastics · ₩052420

Osung Advanced Materials오성첨단소재

052420 · KOSDAQ · ₩052420 · 오성첨단소재

₩7,370▼ ₩60 (0.81%)End-of-day · Oct 29, 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

₩22,311

vs the current price (₩7,370)

Enterprise value: ₩95B
Equity value: ₩217B
WACC: 14.6%

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 203% 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 ₩7,370, the model needs an operating margin of −4.8% every year (it uses 13.4%).
Margins ranged from 4.5% to 18.2% 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.
93% 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.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 0.4× against a typical 10.6× 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: ₩19,450; +163.9%
Base: ₩22,311; +202.7%
Bull: ₩26,257; +256.3%

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 (13.4%).

Revenue growth

Revenue growth, year 112.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (12.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 210%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (12.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 37.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (12.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (12.3% 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 (12.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin13.4%
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.
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 & amortisation1.6%
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 spending1.9%
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 capital22%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta1.92
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 2.38, 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)5.51%
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): ₩108B
Net debt (borrowings and leases − cash and deposits): −₩123B
Shares: 9,742,009
Share price: ₩7,370
Market cap: ₩72B

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	₩105B	₩146B	₩166B	₩121B	₩133B	₩143B	₩151B	₩155B
Growth	−10.4%	39.5%	13.2%	12.3%	10.0%	7.6%	5.3%	3.0%
EBIT	₩13B	₩22B	₩30B	₩16B	₩18B	₩19B	₩20B	₩21B
EBIT margin	12.1%	15.2%	18.2%	13.4%	13.4%	13.4%	13.4%	13.4%
After-tax EBIT	₩9.2B	₩16B	₩22B	₩12B	₩13B	₩14B	₩15B	₩15B
+ Depreciation	—	—	—	₩1.9B	₩2.1B	₩2.3B	₩2.4B	₩2.5B
− Capital spending	₩2.5B	₩3.2B	₩2.2B	₩2.3B	₩2.5B	₩2.7B	₩2.9B	₩2.9B
− Working capital	₩4.1B	−₩6.2B	₩131M	₩2.9B	₩2.7B	₩2.2B	₩1.7B	₩994M
Free cash flow	—	—	—	₩8.5B	₩9.9B	₩11B	₩13B	₩14B
Discount factor	—	—	—	0.873	0.762	0.665	0.580	0.507
Present value	—	—	—	₩7.4B	₩7.5B	₩7.5B	₩7.3B	₩6.9B

Terminal value ₩115B, worth ₩58B today: 61% 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 ₩45,831 a share)Now 0.16×	₩20,7750.45×	₩29,8090.65×	₩43,6790.95×
Price / earnings (last 12 months: ₩18,136 a share)Now 0.41×	₩28,9731.60×	₩192,75310.6×	₩605,13633.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩54,609 a share)Now 0.13×	₩87,2431.60×	₩580,40910.6×	₩1,822,16133.4×

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%
13.6%	₩22,765	₩22,982	₩23,216	₩23,471	₩23,749
14.1%	₩22,341	₩22,535	₩22,744	₩22,971	₩23,218
14.6%	₩21,949	₩22,123	₩22,311	₩22,513	₩22,732
15.1%	₩21,585	₩21,742	₩21,911	₩22,092	₩22,288
15.6%	₩21,247	₩21,389	₩21,541	₩21,703	₩21,879

Now (TTM)

Market cap: ₩72B
Enterprise value: −₩51B
P/E: 0.4×
P/B: 0.2×
P/S: 0.7×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩14,640	₩14,220	₩15,190	₩16,300	₩23,063
Market cap	₩143B	₩139B	₩148B	₩159B	₩225B
P/E	4.4×	11.3×	12.0×	57.3×	—
P/B	0.5×	0.6×	0.7×	0.8×	1.1×
P/S	0.9×	0.9×	1.4×	1.4×	2.4×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Osung Advanced Materials	0.4×	0.2×	0.7×	—	0.0%
Hankook Tire & Technology	5.8×	0.5×	0.3×	—	4.0%
Kumho Tire	3.1×	0.6×	0.3×	—	0.0%
Pum-Tech Korea	19.8×	2.5×	2.1×	—	0.7%
Dongwon Systems	9.7×	0.7×	0.4×	5.7×	2.8%
Nexen Tire	3.6×	0.3×	0.2×	—	3.5%
PI Advanced Materials	12.4×	1.2×	1.7×	5.0×	2.3%
Similar companies (median)	7.7×	0.6×	0.4×	5.4×	2.6%

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

Also known as: Osung Advanced Materials / 오성첨단소재 / 052420 / KRX:052420

Source: KRX statistical information