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Hyosung ITX

094280 · KOSPI · ₩094280 · 효성ITX

₩11,480▼ ₩80 (0.69%)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

₩22,754

vs the current price (₩11,480)

Enterprise value
₩286B
Equity value
₩263B
WACC
6.8%

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 98% 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 ₩11,480, the model needs an operating margin of 2.3% every year (it uses 3.9%).
  • Or revenue growth −12.8 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 9.3× against a typical 10.6× 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
₩5,654
−50.8%
Base
₩22,754
+98.2%
Bull
₩54,304
+373.0%

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 (3.9%).

Revenue growth

  • 0.5%

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

    Default: the last 3 years' revenue growth (0.5% a year, annual reports), fading to 3% by year 5.

  • 1.1%

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

    Default: the last 3 years' revenue growth (0.5% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (0.5% a year, annual reports), fading to 3% by year 5.

  • 2.4%

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

    Default: the last 3 years' revenue growth (0.5% 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 (0.5% a year, annual reports), fading to 3% by year 5.

Business

  • 3.9%

    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.

  • 1.7%

    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).

  • 2.3%

    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).

  • 0.3%

    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.

  • 4.01%

    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: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.11, 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)
₩534B
Net debt (borrowings and leases − cash and deposits)
₩23B
Shares
11,558,200
Share price
₩11,480
Market cap
₩133B

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₩504B₩506B₩519B₩537B₩543B₩553B₩566B₩583B
Growth−1.5%0.5%2.5%0.5%1.1%1.8%2.4%3.0%
EBIT₩19B₩19B₩19B₩21B₩21B₩22B₩22B₩23B
EBIT margin3.8%3.7%3.7%3.9%3.9%3.9%3.9%3.9%
After-tax EBIT₩14B₩14B₩14B₩15B₩15B₩16B₩16B₩16B
+ Depreciation₩8.8B₩8.4B₩8.2B₩9.1B₩9.2B₩9.4B₩9.6B₩9.9B
− Capital spending₩9.5B₩11B₩14B₩12B₩12B₩13B₩13B₩13B
− Working capital−₩1.6B₩13B−₩6.3B₩8M₩18M₩29M₩40M₩51M
Free cash flow₩15B−₩1.9B₩14B₩12B₩12B₩12B₩13B₩13B
Discount factor———0.9360.8760.8210.7680.719
Present value———₩11B₩11B₩10B₩9.7B₩9.3B

Terminal value ₩327B, worth ₩235B 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 ₩6,487 a share)Now 1.77×₩12,2041.88×₩13,3892.06×₩17,0482.63×
Price / earnings (last 12 months: ₩1,235 a share)Now 9.30×₩11,5589.36×₩13,10610.6×₩15,28212.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,057 a share)Now 10.9×₩9,8969.36×₩11,22010.6×₩13,08312.4×

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%
5.8%₩23,672₩26,227₩29,453₩33,651₩39,340
6.3%₩21,172₩23,207₩25,714₩28,877₩32,995
6.8%₩19,105₩20,758₩22,754₩25,213₩28,315
7.3%₩17,367₩18,732₩20,353₩22,311₩24,723
7.8%₩15,886₩17,028₩18,367₩19,957₩21,878

Now (TTM)

Market cap
₩133B
Enterprise value
₩124B
P/E
9.3×
P/B
1.8×
P/S
0.2×
EV/EBITDA
4.7×
Dividend yield
6.5%

Over time (at each year end)

20252024202320222021
Price₩12,800₩12,210₩12,430₩13,550₩20,000
Market cap₩148B₩141B₩144B₩157B₩231B
P/E9.6×12.0×9.9×10.5×16.1×
P/B2.0×2.0×2.0×2.4×2.2×
P/S0.3×0.3×0.3×0.3×0.5×
EV/EBITDA5.3×5.0×5.0×5.0×9.0×
Dividend yield5.9%6.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hyosung ITX9.3×1.8×0.2×4.7×6.5%
S-124.3×2.2×1.3×—0.0%
Cheil Worldwide8.5×1.2×0.4×—6.7%
Doosan Tesna50.9×3.9×5.3×—0.2%
Lotte Tour Development15.2×2.1×1.1×—0.0%
Soulbrain Holdings1.3×0.4×1.2×—1.3%
Innocean Worldwide5.4×0.6×0.3×—6.8%
Similar companies (median)11.8×1.6×1.2×—0.8%

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

Also known as: Hyosung ITX / 효성ITX / 094280 / KRX:094280

Source: KRX statistical information