KOSDAQ · 061250 · Biotech & Pharma · ₩061250

Hwail Pharm화일약품

061250 · KOSDAQ · ₩061250 · 화일약품

₩5,790▲ ₩40 (0.70%)End-of-day · Oct 28, 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

₩9,350

vs the current price (₩5,790)

Enterprise value: −₩22B
Equity value: ₩79B
WACC: 15.1%

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 61% 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 ₩5,790, the model needs an operating margin of −6.4% every year (it uses 0.9%).
100% 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.
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.
Today's P/E is 11.7× against a typical 21.8× 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: ₩9,228; +59.4%
Base: ₩9,350; +61.5%
Bull: ₩9,757; +68.5%

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 (0.9%).

Revenue growth

Revenue growth, year 1-8.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-5.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-2.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% 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 (-8.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin0.9%
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 & amortisation1.4%
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 spending11.5%
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 rate4.08%
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.
Beta2
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 4.67, 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)5.58%
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): ₩91B
Net debt (borrowings and leases − cash and deposits): −₩90B
+ Stakes and investments: ₩10B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩945,261
Shares: 8,417,584
Share price: ₩5,790
Market cap: ₩49B

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	₩123B	₩120B	₩101B	₩83B	₩78B	₩76B	₩76B	₩78B
Growth	−7.2%	−2.3%	−15.8%	−8.6%	−5.7%	−2.8%	0.1%	3.0%
EBIT	₩2B	₩755M	−₩2.3B	₩747M	₩704M	₩684M	₩685M	₩706M
EBIT margin	1.7%	0.6%	−2.3%	0.9%	0.9%	0.9%	0.9%	0.9%
After-tax EBIT	₩1.5B	₩547M	−₩1.7B	₩541M	₩511M	₩496M	₩497M	₩512M
+ Depreciation	—	—	₩1.5B	₩1.2B	₩1.1B	₩1.1B	₩1.1B	₩1.1B
− Capital spending	₩2B	₩35B	₩4B	₩9.5B	₩9B	₩8.7B	₩8.8B	₩9B
− Working capital	−₩31B	₩16B	−₩27B	−₩3.1B	−₩1.9B	−₩876M	₩30M	₩914M
Free cash flow	—	—	₩23B	−₩4.7B	−₩5.5B	−₩6.3B	−₩7.2B	−₩8.3B
Discount factor	—	—	—	0.869	0.755	0.656	0.570	0.495
Present value	—	—	—	−₩4.1B	−₩4.2B	−₩4.1B	−₩4.1B	−₩4.1B

Terminal value −₩1.8B, worth −₩871M today: 4% 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 ₩25,295 a share)Now 0.23×	₩9,7060.38×	₩19,9320.79×	₩30,2801.20×
Price / earnings (last 12 months: ₩495 a share)Now 11.7×	₩6,07212.3×	₩10,77821.8×	₩34,78370.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,079 a share)Now 2.79×	₩25,48612.3×	₩45,23521.8×	₩145,99170.2×

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%
14.1%	₩9,430	₩9,354	₩9,271	₩9,180	₩9,080
14.6%	₩9,460	₩9,389	₩9,311	₩9,226	₩9,132
15.1%	₩9,490	₩9,423	₩9,350	₩9,270	₩9,182
15.6%	₩9,520	₩9,456	₩9,387	₩9,312	₩9,230
16.1%	₩9,549	₩9,489	₩9,424	₩9,353	₩9,276

Now (TTM)

Market cap: ₩49B
Enterprise value: −₩41B
P/E: 11.7×
P/B: 0.2×
P/S: 0.5×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩11,430	₩12,820	₩22,050	₩27,799	₩26,200
Market cap	₩96B	₩108B	₩186B	₩234B	₩221B
P/E	—	16.6×	48.0×	—	77.6×
P/B	0.5×	0.5×	1.1×	1.3×	1.2×
P/S	1.0×	0.9×	1.5×	1.8×	2.1×
EV/EBITDA	—	—	—	—	29.5×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hwail Pharm	11.7×	0.2×	0.5×	—	0.0%
Samsung Biologics	32.0×	7.6×	14.0×	—	0.0%
Celltrion	27.9×	2.5×	9.0×	—	0.0%
Alteogen	80.5×	29.0×	61.2×	—	0.1%
SK biopharmaceuticals	14.7×	5.8×	6.8×	—	0.0%
Yuhan	24.0×	2.4×	2.5×	31.3×	0.8%
HLB	—	15.7×	55.6×	—	0.0%
Similar companies (median)	27.9×	6.7×	11.5×	31.3×	0.0%

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

Also known as: Hwail Pharm / 화일약품 / 061250 / KRX:061250

Source: KRX statistical information