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Shinhwapritech

095190 · KOSDAQ · ₩095190 · 신화프리텍

₩1,767▼ ₩18 (1.01%)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

₩271

vs the current price (₩1,767)

Enterprise value
₩4.7B
Equity value
₩18B
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 85% 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 ₩1,767, the model needs an operating margin of 11.7% every year (it uses 2.0%).
  • Or revenue growth +56.6 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −5.2% to 4.5% 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.
  • 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.

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
−100.0%
Base
₩271
−84.7%
Bull
₩767
−56.6%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

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Cycle options

Margin path

Every year uses the cycle-average margin (2.0%).

Revenue growth

  • 1.5%

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

    Default: the last 3 years' revenue growth (1.5% 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 (1.5% a year, annual reports), fading to 3% by year 5.

  • 2.2%

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

    Default: the last 3 years' revenue growth (1.5% a year, annual reports), fading to 3% by year 5.

  • 2.6%

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

    Default: the last 3 years' revenue growth (1.5% 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 (1.5% a year, annual reports), fading to 3% by year 5.

Business

  • 2%

    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.

  • 9.7%

    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).

  • 12.2%

    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 0.09, 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)
₩73B
Net debt (borrowings and leases − cash and deposits)
−₩13B
+ Stakes and investments
₩101M
Associates, long-term financial assets and deposits (book value)
Shares
65,260,462
Share price
₩1,767
Market cap
₩115B

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₩97B₩121B₩93B₩74B₩75B₩77B₩79B₩81B
Growth9.5%24.5%−23.4%1.5%1.8%2.2%2.6%3.0%
EBIT₩4.3B₩2.2B−₩4.8B₩1.5B₩1.5B₩1.5B₩1.6B₩1.6B
EBIT margin4.5%1.8%−5.2%2.0%2.0%2.0%2.0%2.0%
After-tax EBIT₩3.1B₩1.6B−₩3.5B₩1.1B₩1.1B₩1.1B₩1.1B₩1.2B
+ Depreciation———₩7.2B₩7.3B₩7.5B₩7.7B₩7.9B
− Capital spending——₩11B₩9B₩9.2B₩9.4B₩9.6B₩9.9B
− Working capital−₩16B−₩4B₩15B−₩109M−₩133M−₩166M−₩200M−₩237M
Free cash flow———−₩667M−₩657M−₩642M−₩629M−₩617M
Discount factor———0.9310.8670.8070.7510.700
Present value———−₩621M−₩570M−₩518M−₩472M−₩431M

Terminal value ₩10B, worth ₩7.3B today: 156% 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 ₩1,690 a share)Now 1.05×₩2,0081.19×₩2,8351.68×₩3,7692.23×

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%₩257₩277₩302₩333₩373
6.9%₩247₩264₩285₩310₩342
7.4%₩239₩254₩271₩292₩318
7.9%₩232₩245₩260₩278₩299
8.4%₩226₩237₩250₩266₩284

Now (TTM)

Market cap
₩115B
Enterprise value
₩102B
P/E
—
P/B
1.0×
P/S
1.6×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,065₩2,195₩2,255₩3,020₩4,045
Market cap₩135B₩143B₩147B₩197B₩264B
P/E—————
P/B1.2×1.5×1.6×1.9×2.5×
P/S1.5×1.2×1.5×2.2×3.1×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Shinhwapritech—1.0×1.6×—0.0%
CS Wind385.5×1.3×0.6×—2.5%
Hankuk Carbon7.8×1.2×0.9×—2.1%
Taewoong65.8×0.8×1.3×21.0×0.0%
YG-15.1×0.8×0.5×—1.8%
Bosung Power Technology18.8×2.1×1.8×8.5×0.0%
HT Robotics44.6×3.2×2.1×—0.0%
Similar companies (median)31.7×1.2×1.1×14.7×0.9%

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

Also known as: Shinhwapritech / 신화프리텍 / 095190 / KRX:095190

Source: KRX statistical information