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HC HomeCenter

060560 · KOSDAQ · ₩060560 · HC홈센타

₩1,835▲ ₩9 (0.49%)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
−₩105M
Equity value
−₩69B
WACC
5.9%

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 ₩1,835, the model needs an operating margin of 4.6% every year (it uses 2.0%).
  • Margins ranged from −6.2% to 9.3% 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.
  • 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
₩2,957
+61.1%

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 (2.0%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-11.6% 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 (-11.6% 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 (-11.6% 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 (-11.6% 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 (-11.6% a year, annual reports), fading to 3% by year 5.

Business

  • 2%

    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.

  • 4.1%

    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).

  • 9.2%

    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).

  • 24.4%

    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 0.08, 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)
₩309B
Net debt (borrowings and leases − cash and deposits)
₩39B
+ Stakes and investments
₩32B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩62B
Shares
25,388,001
Share price
₩1,835
Market cap
₩47B

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₩427B₩369B₩299B₩278B₩259B₩250B₩250B₩257B
Growth−1.1%−13.7%−19.0%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩40B₩12B−₩19B₩5.6B₩5.2B₩5B₩5B₩5.1B
EBIT margin9.3%3.3%−6.2%2.0%2.0%2.0%2.0%2.0%
After-tax EBIT₩29B₩8.9B−₩13B₩4B₩3.8B₩3.6B₩3.6B₩3.7B
+ Depreciation₩14B₩15B₩15B₩11B₩11B₩10B₩10B₩11B
− Capital spending₩32B₩22B₩43B₩26B₩24B₩23B₩23B₩24B
− Working capital₩28B₩39B−₩25B−₩7.5B−₩4.5B−₩2.2B−₩122M₩1.8B
Free cash flow−₩17B−₩38B−₩16B−₩2.6B−₩4.9B−₩6.9B−₩9B−₩11B
Discount factor———0.9450.8920.8430.7960.752
Present value———−₩2.5B−₩4.4B−₩5.8B−₩7.2B−₩8.4B

Terminal value ₩37B, worth ₩28B today: -26770% 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 ₩5,308 a share)Now 0.35×₩2,8020.53×₩5,5481.05×₩8,0401.51×

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%
4.9%—————
5.4%—————
5.9%—————
6.4%—————
6.9%—————

Now (TTM)

Market cap
₩47B
Enterprise value
₩74B
P/E
—
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
2.7%

Over time (at each year end)

20252024202320222021
Price₩3,720₩4,950₩6,964₩6,571₩7,294
Market cap₩94B₩126B₩177B₩167B₩185B
P/E—26.4×7.7×12.4×18.7×
P/B0.7×0.7×1.1×1.2×1.4×
P/S0.3×0.3×0.4×0.4×0.6×
EV/EBITDA—10.2×5.0×5.9×8.3×
Dividend yield1.3%3.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
HC HomeCenter—0.3×0.2×—2.7%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.6×1.3×0.3×—3.7%
ISC45.3×6.0×12.6×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies18.9×1.6×5.1×—4.2%
Shinsegae14.4×0.5×0.3×—2.0%
Similar companies (median)16.6×1.0×1.0×—2.6%

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

Also known as: HC HomeCenter / HC홈센타 / 060560 / KRX:060560

Source: KRX statistical information