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Bio Solution

086820 · KOSDAQ · ₩086820 · 바이오솔루션

₩5,590▼ ₩60 (1.06%)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
−₩63B
Equity value
−₩71B
WACC
7.2%

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 ₩5,590, the model needs an operating margin of 45.0% every year (it uses −20.0%).
  • Margins ranged from −52.4% to −13.3% 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.
  • 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.
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.

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
—

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 (−20.0%).

Revenue growth

  • 14.6%

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

    Default: the last 3 years' revenue growth (14.6% a year, annual reports), fading to 3% by year 5.

  • 11.7%

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

    Default: the last 3 years' revenue growth (14.6% a year, annual reports), fading to 3% by year 5.

  • 8.8%

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

    Default: the last 3 years' revenue growth (14.6% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (14.6% 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 (14.6% a year, annual reports), fading to 3% by year 5.

Business

  • -20%

    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.

  • 15.7%

    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).

  • 7.9%

    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).

  • -10%

    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 -0.2, 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)
₩17B
Net debt (borrowings and leases − cash and deposits)
₩7.8B
Shares
25,924,085
Share price
₩5,590
Market cap
₩145B

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₩12B₩13B₩15B₩20B₩22B₩24B₩26B₩26B
Growth23.4%3.4%17.9%14.6%11.7%8.8%5.9%3.0%
EBIT−₩5B−₩5.1B−₩4.3B−₩4B−₩4.5B−₩4.8B−₩5.1B−₩5.3B
EBIT margin−40.4%−39.3%−28.6%−20.0%−20.0%−20.0%−20.0%−20.0%
After-tax EBIT−₩3.6B−₩3.7B−₩3.1B−₩2.9B−₩3.2B−₩3.5B−₩3.7B−₩3.8B
+ Depreciation₩2.5B₩1.9B₩1.8B₩3.1B₩3.5B₩3.8B₩4B₩4.1B
− Capital spending₩1.2B₩1.2B₩732M₩1.6B₩1.8B₩1.9B₩2B₩2.1B
− Working capital−₩48B₩6B₩2.6B−₩254M−₩233M−₩196M−₩143M−₩77M
Free cash flow₩46B−₩9B−₩4.6B−₩1.1B−₩1.3B−₩1.4B−₩1.6B−₩1.7B
Discount factor———0.9330.8700.8110.7560.705
Present value———−₩1B−₩1.1B−₩1.2B−₩1.2B−₩1.2B

Terminal value −₩82B, worth −₩58B today: 91% 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 ₩1,594 a share)Now 3.51×₩3,8162.39×₩5,7903.63×₩12,5667.89×

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%
6.2%—————
6.7%—————
7.2%—————
7.7%—————
8.2%—————

Now (TTM)

Market cap
₩145B
Enterprise value
₩152B
P/E
166.8×
P/B
3.5×
P/S
8.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,910₩7,239₩6,529₩3,569₩7,306
Market cap₩205B₩188B₩169B₩93B₩189B
P/E750.1×————
P/B6.4×6.0×4.0×2.1×4.2×
P/S13.5×14.6×13.6×9.2×16.0×
EV/EBITDA————3,228.4×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Bio Solution166.8×3.5×8.3×—0.0%
Samsung Biologics32.0×7.6×14.0×—0.0%
Celltrion27.9×2.5×9.0×—0.0%
Alteogen80.5×29.0×61.2×—0.1%
SK biopharmaceuticals14.7×5.8×6.8×—0.0%
Yuhan24.0×2.4×2.5×31.3×0.8%
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: Bio Solution / 바이오솔루션 / 086820 / KRX:086820

Source: KRX statistical information