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Hanwha Engine

082740 · KOSPI · ₩082740 · 한화엔진

₩32,250▲ ₩1,200 (3.86%)End-of-day · Oct 27, 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

₩7,494

vs the current price (₩32,250)

Enterprise value
₩493B
Equity value
₩625B
WACC
8.7%

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 77% 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 ₩32,250, the model needs an operating margin of 11.8% every year (it uses 3.1%).
  • Or revenue growth +52.1 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −6.6% to 9.5% 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.
  • 50% 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.

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
₩1,765
−94.5%
Base
₩7,494
−76.8%
Bull
₩17,098
−47.0%

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 (3.1%).

Revenue growth

  • 21.5%

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

    Default: the last 3 years' revenue growth (21.5% a year, annual reports), fading to 3% by year 5.

  • 16.9%

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

    Default: the last 3 years' revenue growth (21.5% a year, annual reports), fading to 3% by year 5.

  • 12.3%

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

    Default: the last 3 years' revenue growth (21.5% a year, annual reports), fading to 3% by year 5.

  • 7.6%

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

    Default: the last 3 years' revenue growth (21.5% 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 (21.5% a year, annual reports), fading to 3% by year 5.

Business

  • 3.1%

    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.

  • 2.9%

    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).

  • 3.7%

    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).

  • 7.7%

    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.

  • 0.83

    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 0.75, 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)
₩1.4T
Net debt (borrowings and leases − cash and deposits)
−₩132B
Shares
83,447,142
Share price
₩32,250
Market cap
₩2.7T

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₩854B₩1.2T₩1.4T₩1.7T₩1.9T₩2.2T₩2.4T₩2.4T
Growth11.8%40.7%14.0%21.5%16.9%12.3%7.6%3.0%
EBIT₩8.7B₩72B₩130B₩52B₩60B₩68B₩73B₩75B
EBIT margin1.0%6.0%9.5%3.1%3.1%3.1%3.1%3.1%
After-tax EBIT₩6.3B₩52B₩94B₩37B₩44B₩49B₩53B₩55B
+ Depreciation———₩48B₩57B₩63B₩68B₩70B
− Capital spending₩31B₩55B₩39B₩62B₩72B₩81B₩87B₩90B
− Working capital₩897M−₩12B−₩36B₩23B₩22B₩18B₩13B₩5.4B
Free cash flow———₩1.4B₩6.5B₩13B₩21B₩30B
Discount factor———0.9200.8470.7790.7170.660
Present value———₩1.3B₩5.5B₩10B₩15B₩20B

Terminal value ₩669B, worth ₩441B today: 89% 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 ₩7,786 a share)Now 4.14×₩21,8412.81×₩30,8333.96×₩67,8378.71×

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%
7.7%₩7,947₩8,314₩8,744₩9,255₩9,874
8.2%₩7,415₩7,717₩8,067₩8,477₩8,966
8.7%₩6,954₩7,206₩7,494₩7,828₩8,219
9.2%₩6,552₩6,763₩7,003₩7,278₩7,596
9.7%₩6,197₩6,376₩6,577₩6,806₩7,067

Now (TTM)

Market cap
₩2.7T
Enterprise value
₩2.6T
P/E
11.3×
P/B
4.1×
P/S
2.0×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩42,950₩18,440₩9,790₩7,420₩6,543
Market cap₩3.6T₩1.5T₩817B₩619B₩546B
P/E20.6×19.4×———
P/B6.4×3.9×3.6×2.8×2.6×
P/S2.6×1.3×1.0×0.8×0.9×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hanwha Engine11.3×4.1×2.0×—0.0%
Doosan Enerbility208.4×4.6×2.1×—0.0%
Hanmi Semiconductor82.2×24.4×33.1×74.0×0.4%
Jusung Engineering1,121.0×13.7×36.0×2,158.2×0.0%
Rainbow Robotics4,006.5×51.3×151.2×—0.0%
EO Technics44.8×6.5×10.9×—0.0%
Doosan Bobcat13,664.7×914.4×736.1×—3.5%
Similar companies (median)664.7×19.1×34.5×1,116.1×0.0%

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

Also known as: Hanwha Engine / 한화엔진 / 082740 / KRX:082740

Source: KRX statistical information