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DongKook Pharmaceutical

086450 · KOSDAQ · ₩086450 · 동국제약

₩23,900▼ ₩150 (0.62%)End-of-day · Oct 29, 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

₩34,297

vs the current price (₩23,900)

Enterprise value
₩1.5T
Equity value
₩1.6T
WACC
7.4%

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 44% 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 ₩23,900, the model needs an operating margin of 7.7% every year (it uses 10.4%).
  • Or revenue growth −9.6 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 14.2× against a typical 13.5× 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
₩20,155
−15.7%
Base
₩34,297
+43.5%
Bull
₩58,321
+144.0%

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 (10.4%).

Revenue growth

  • 11.9%

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

    Default: the last 3 years' revenue growth (11.9% a year, annual reports), fading to 3% by year 5.

  • 9.7%

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

    Default: the last 3 years' revenue growth (11.9% a year, annual reports), fading to 3% by year 5.

  • 7.4%

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

    Default: the last 3 years' revenue growth (11.9% a year, annual reports), fading to 3% by year 5.

  • 5.2%

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

    Default: the last 3 years' revenue growth (11.9% 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 (11.9% a year, annual reports), fading to 3% by year 5.

Business

  • 10.4%

    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.

  • 3.8%

    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).

  • 4.7%

    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).

  • 19.3%

    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 -0.15, 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)
₩980B
Net debt (borrowings and leases − cash and deposits)
−₩112B
+ Stakes and investments
₩10B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩101B
Shares
45,230,420
Share price
₩23,900
Market cap
₩1.1T

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₩731B₩812B₩927B₩1.1T₩1.2T₩1.3T₩1.4T₩1.4T
Growth10.5%11.1%14.1%11.9%9.7%7.4%5.2%3.0%
EBIT₩67B₩80B₩97B₩114B₩125B₩134B₩141B₩146B
EBIT margin9.1%9.9%10.4%10.4%10.4%10.4%10.4%10.4%
After-tax EBIT₩48B₩58B₩70B₩83B₩91B₩97B₩102B₩106B
+ Depreciation———₩42B₩46B₩49B₩52B₩53B
− Capital spending₩39B₩31B₩46B₩52B₩57B₩61B₩64B₩66B
− Working capital−₩1.6B−₩3.9B₩33B₩22B₩21B₩17B₩13B₩7.9B
Free cash flow———₩50B₩59B₩69B₩77B₩85B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩47B₩51B₩55B₩58B₩60B

Terminal value ₩1.8T, worth ₩1.3T today: 82% 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 ₩15,402 a share)Now 1.55×₩18,7541.22×₩21,5551.40×₩31,7772.06×
Price / earnings (last 12 months: ₩1,687 a share)Now 14.2×₩19,56611.6×₩22,83013.5×₩28,78517.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,552 a share)Now 15.4×₩18,00111.6×₩21,00413.5×₩26,48317.1×

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%
6.4%₩36,344₩39,093₩42,464₩46,697₩52,176
6.9%₩33,100₩35,306₩37,960₩41,214₩45,302
7.4%₩30,368₩32,167₩34,297₩36,859₩40,000
7.9%₩28,037₩29,524₩31,260₩33,316₩35,788
8.4%₩26,024₩27,268₩28,703₩30,379₩32,362

Now (TTM)

Market cap
₩1.1T
Enterprise value
₩969B
P/E
14.2×
P/B
1.6×
P/S
1.1×
EV/EBITDA
—
Dividend yield
0.8%

Over time (at each year end)

20252024202320222021
Price₩17,150₩16,520₩16,160₩16,600₩21,800
Market cap₩776B₩747B₩731B₩751B₩986B
P/E11.7×12.2×15.5×14.2×19.6×
P/B1.2×1.2×1.3×1.5×2.2×
P/S0.8×0.9×1.0×1.1×1.7×
EV/EBITDA—————
Dividend yield1.2%1.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
DongKook Pharmaceutical14.2×1.6×1.1×—0.8%
Samsung Biologics31.9×7.6×13.9×—0.0%
Celltrion27.9×2.5×9.0×—0.0%
Alteogen79.4×28.6×60.3×—0.1%
SK biopharmaceuticals15.2×6.0×7.1×—0.0%
Yuhan23.2×2.3×2.4×30.2×0.8%
HLB—15.4×54.3×—0.0%
Similar companies (median)27.9×6.8×11.4×30.2×0.0%

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

Also known as: DongKook Pharmaceutical / 동국제약 / 086450 / KRX:086450

Source: KRX statistical information