DAE HWA Pharm대화제약
067080 · KOSDAQ · ₩067080 · 대화제약
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
- ₩57B
- Equity value
- −₩48B
- WACC
- 6.2%
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 ₩9,630, the model needs an operating margin of 11.7% every year (it uses 3.3%).
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
- ₩3,095
- −67.9%
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 (3.3%).
Revenue growth
- 2.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.
- 2.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.
- 2.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.
- 2.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (2.7% 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 (2.7% a year, annual reports), fading to 3% by year 5.
Business
- 3.3%
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.
- 3.6%
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).
- 4%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: not in the statements, so a typical level.
- 23.9%
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.
- 4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
- 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 0.33, 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.
- 5.61%
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)
- ₩149B
- Net debt (borrowings and leases − cash and deposits)
- ₩99B
- − Minority interests
- ₩5.1B
- Shares
- 18,616,650
- Share price
- ₩9,630
- Market cap
- ₩179B
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 | ₩141B | ₩149B | ₩143B | ₩153B | ₩157B | ₩162B | ₩166B | ₩171B |
| Growth | 7.2% | 5.7% | −4.2% | 2.7% | 2.8% | 2.9% | 2.9% | 3.0% |
| EBIT | ₩2B | ₩6.7B | ₩3.2B | ₩5B | ₩5.2B | ₩5.3B | ₩5.5B | ₩5.7B |
| EBIT margin | 1.4% | 4.5% | 2.2% | 3.3% | 3.3% | 3.3% | 3.3% | 3.3% |
| After-tax EBIT | ₩1.4B | ₩4.9B | ₩2.3B | ₩3.7B | ₩3.8B | ₩3.9B | ₩4B | ₩4.1B |
| + Depreciation | ₩4.8B | ₩5.4B | ₩5.2B | ₩5.5B | ₩5.7B | ₩5.8B | ₩6B | ₩6.2B |
| − Capital spending | — | — | — | ₩6.1B | ₩6.3B | ₩6.5B | ₩6.7B | ₩6.9B |
| − Working capital | ₩8.4B | ₩125M | −₩3.4B | ₩960M | ₩1B | ₩1.1B | ₩1.1B | ₩1.2B |
| Free cash flow | — | — | — | ₩2.1B | ₩2.1B | ₩2.1B | ₩2.2B | ₩2.2B |
| Discount factor | — | — | — | 0.941 | 0.886 | 0.835 | 0.786 | 0.740 |
| Present value | — | — | — | ₩2B | ₩1.9B | ₩1.8B | ₩1.7B | ₩1.6B |
Terminal value ₩64B, worth ₩48B today: 84% 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 ₩4,331 a share)Now 2.22× | ₩8,1001.87× | ₩10,7402.48× | ₩19,1714.43× |
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% |
|---|---|---|---|---|---|
| 5.2% | — | — | — | — | — |
| 5.7% | — | — | — | — | — |
| 6.2% | — | — | — | — | — |
| 6.7% | — | — | — | — | — |
| 7.2% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩179B
- Enterprise value
- ₩279B
- P/E
- 40.4×
- P/B
- 2.2×
- P/S
- 1.2×
- EV/EBITDA
- 26.2×
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩17,430 | ₩10,940 | ₩9,380 | ₩9,400 | ₩9,320 |
| Market cap | ₩324B | ₩204B | ₩175B | ₩175B | ₩174B |
| P/E | 196.2× | 383.3× | — | 156.9× | 78.2× |
| P/B | 4.4× | 2.8× | 2.4× | 2.2× | 2.2× |
| P/S | 2.3× | 1.4× | 1.2× | 1.3× | 1.5× |
| EV/EBITDA | 50.1× | 24.8× | 41.5× | 28.8× | 35.3× |
| Dividend yield | 0.0% | 0.0% | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| DAE HWA Pharm | 40.4× | 2.2× | 1.2× | 26.2× | 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: DAE HWA Pharm / 대화제약 / 067080 / KRX:067080
Source: KRX statistical information