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Pyung HWA Industrial

090080 · KOSPI · ₩090080 · 평화산업

₩878▼ ₩8 (0.90%)End-of-day · Oct 30, 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

₩2,971

vs the current price (₩878)

Enterprise value
₩150B
Equity value
₩163B
WACC
7.3%

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 238% 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 ₩878, the model needs an operating margin of 0.8% every year (it uses 1.9%).
  • 43% 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.
  • Today's P/E is 1.8× against a typical 10.3× 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
—
Base
₩2,971
+238.4%
Bull
₩9,241
+952.6%

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 (1.9%).

Revenue growth

  • 6.4%

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

    Default: the last 3 years' revenue growth (6.4% a year, annual reports), fading to 3% by year 5.

  • 5.5%

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

    Default: the last 3 years' revenue growth (6.4% a year, annual reports), fading to 3% by year 5.

  • 4.7%

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

    Default: the last 3 years' revenue growth (6.4% a year, annual reports), fading to 3% by year 5.

  • 3.8%

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

    Default: the last 3 years' revenue growth (6.4% 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 (6.4% a year, annual reports), fading to 3% by year 5.

Business

  • 1.9%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 1.4%

    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).

  • 1.7%

    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).

  • 5.2%

    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.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 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 -0.06, 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.

  • 5.51%

    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)
₩645B
Net debt (borrowings and leases − cash and deposits)
−₩13B
+ Stakes and investments
₩170M
Associates, long-term financial assets and deposits (book value)
Shares
54,902,259
Share price
₩878
Market cap
₩48B

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₩564B₩588B₩626B₩686B₩724B₩758B₩787B₩811B
Growth8.5%4.3%6.4%6.4%5.5%4.7%3.8%3.0%
EBIT₩9.9B₩14B₩13B₩13B₩14B₩14B₩15B₩15B
EBIT margin1.8%2.4%2.1%1.9%1.9%1.9%1.9%1.9%
After-tax EBIT₩7.2B₩10B₩9.7B₩9.5B₩10B₩10B₩11B₩11B
+ Depreciation———₩9.6B₩10B₩11B₩11B₩11B
− Capital spending₩8.4B₩7.1B₩15B₩12B₩12B₩13B₩13B₩14B
− Working capital−₩22B₩14B−₩12B₩2.1B₩2B₩1.8B₩1.5B₩1.2B
Free cash flow———₩5.2B₩5.8B₩6.4B₩7B₩7.5B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩4.9B₩5.1B₩5.2B₩5.3B₩5.3B

Terminal value ₩177B, worth ₩124B today: 83% 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 ₩1,424 a share)Now 0.62×₩1,1610.82×₩2,1071.48×₩5,0213.53×
Price / earnings (last 12 months: ₩502 a share)Now 1.75×₩1,1002.19×₩5,14910.3×₩8,41216.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩537 a share)Now 1.63×₩1,1792.19×₩5,51710.3×₩9,01316.8×

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%
6.3%₩3,177₩3,386₩3,642₩3,966₩4,386
6.8%₩2,907₩3,072₩3,271₩3,516₩3,824
7.3%₩2,680₩2,813₩2,971₩3,160₩3,394
7.8%₩2,487₩2,596₩2,722₩2,872₩3,053
8.3%₩2,321₩2,410₩2,513₩2,634₩2,777

Now (TTM)

Market cap
₩48B
Enterprise value
₩35B
P/E
1.8×
P/B
0.6×
P/S
0.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩941₩890₩1,327₩1,175₩1,730
Market cap₩52B₩49B₩73B₩65B₩95B
P/E3.3×12.7×20.1×10.6×463.0×
P/B0.8×1.1×1.7×1.6×3.7×
P/S0.1×0.1×0.1×0.1×0.2×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Pyung HWA Industrial1.8×0.6×0.1×—0.0%
Hyundai Mobis8.3×0.6×0.5×—1.9%
SL5.9×0.8×0.4×3.6×0.0%
HL Mando10.3×0.6×0.2×—2.0%
Hyundai WIA18.9×0.4×0.2×—2.4%
Samhyun—11.2×15.8×—0.0%
SNT Dynamics12.5×0.7×0.8×—7.3%
Similar companies (median)10.3×0.6×0.4×3.6×2.0%

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

Also known as: Pyung HWA Industrial / 평화산업 / 090080 / KRX:090080

Source: KRX statistical information