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Hanjoo Art

058450 · KOSDAQ · ₩058450 · 한주에이알티

₩599 ₩0 (0.00%)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

With these assumptions the model gives no positive value.

Enterprise value
−₩88B
Equity value
−₩95B
WACC
5.2%

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 ₩599, the model needs an operating margin of 3.0% every year (it uses −20.0%).
  • Margins ranged from −100.5% to −27.9% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (−20.0%).

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.

  • 3.8%

    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.

  • 3.5%

    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.

  • 3.3%

    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.

  • 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

  • -20%

    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.

  • 7.9%

    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).

  • 0.3%

    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).

  • 32.3%

    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.

  • 4.08%

    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.

  • 0.6

    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 0.25, 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)
₩17B
Net debt (borrowings and leases − cash and deposits)
₩6.5B
− Minority interests
₩1.2B
Shares
5,397,972
Share price
₩599
Market cap
₩3.2B

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₩11B₩14B₩6.3B₩18B₩18B₩19B₩20B₩20B
Growth88.1%35.8%−55.9%4.0%3.8%3.5%3.3%3.0%
EBIT−₩2.9B−₩6.5B−₩6B−₩3.5B−₩3.7B−₩3.8B−₩3.9B−₩4.1B
EBIT margin−27.9%−45.6%−95.3%−20.0%−20.0%−20.0%−20.0%−20.0%
After-tax EBIT−₩2.1B−₩4.7B−₩4.3B−₩2.6B−₩2.7B−₩2.8B−₩2.9B−₩2.9B
+ Depreciation₩881M₩1B—₩1.4B₩1.5B₩1.5B₩1.6B₩1.6B
− Capital spending₩14M₩22M₩39M₩53M₩55M₩57M₩59M₩61M
− Working capital₩382M₩12B−₩17B₩220M₩218M₩208M₩203M₩191M
Free cash flow−₩1.6B−₩16B—−₩1.4B−₩1.5B−₩1.5B−₩1.6B−₩1.6B
Discount factor———0.9510.9040.8600.8180.778
Present value———−₩1.4B−₩1.3B−₩1.3B−₩1.3B−₩1.2B

Terminal value −₩104B, worth −₩81B today: 93% 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 ₩3,371 a share)Now 0.18×₩3,8991.16×₩11,7223.48×₩29,9068.87×

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%
4.2%—————
4.7%—————
5.2%—————
5.7%—————
6.2%—————

Now (TTM)

Market cap
₩3.2B
Enterprise value
₩9.7B
P/E
—
P/B
0.2×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,666₩9,396₩13,978₩42,163₩20,567
Market cap₩20B₩51B₩75B₩228B₩111B
P/E—————
P/B2.0×2.5×4.1×50.3×8.9×
P/S3.1×3.6×7.2×40.8×21.1×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hanjoo Art—0.2×0.2×—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: Hanjoo Art / 한주에이알티 / 058450 / KRX:058450

Source: KRX statistical information