KOSDAQ · 097870 · Chemicals · ₩097870

Hyosung ONB효성오앤비

097870 · KOSDAQ · ₩097870 · 효성오앤비

₩4,070▲ ₩40 (0.99%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩6,510

vs the current price (₩4,070)

Enterprise value: ₩27B
Equity value: ₩55B
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 60% 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 ₩4,070, the model needs an operating margin of 3.5% every year (it uses 11.6%).
Margins ranged from 2.4% to 15.2% 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.
Today's P/E is 12.3× against a typical 17.2× 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: ₩5,386; +32.3%
Base: ₩6,510; +59.9%
Bull: ₩8,458; +107.8%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (11.6%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin11.6%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation4.5%
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).
Capital spending5.5%
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).
Working capital40%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
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.
Beta0.6
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 -0.02, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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 (FY 2025): ₩24B
Net debt (borrowings and leases − cash and deposits): −₩29B
− Minority interests: ₩977M
Shares: 8,490,000
Share price: ₩4,070
Market cap: ₩35B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩30B	₩28B	₩24B	₩22B	₩20B	₩20B	₩20B	₩20B
Growth	−12.8%	−5.4%	−13.1%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩720M	₩4.3B	₩3.5B	₩2.5B	₩2.4B	₩2.3B	₩2.3B	₩2.4B
EBIT margin	2.4%	15.2%	14.2%	11.6%	11.6%	11.6%	11.6%	11.6%
After-tax EBIT	₩522M	₩3.1B	₩2.5B	₩1.8B	₩1.7B	₩1.7B	₩1.7B	₩1.7B
+ Depreciation	₩1.2B	₩1.3B	₩1.2B	₩988M	₩922M	₩889M	₩887M	₩914M
− Capital spending	₩2.5B	₩1B	₩1.1B	₩1.2B	₩1.1B	₩1.1B	₩1.1B	₩1.1B
− Working capital	−₩971M	₩25B	−₩36B	−₩975M	−₩588M	−₩287M	−₩16M	₩237M
Free cash flow	₩276M	−₩22B	₩38B	₩2.6B	₩2.1B	₩1.8B	₩1.5B	₩1.3B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	₩2.4B	₩1.8B	₩1.4B	₩1.1B	₩889M

Terminal value ₩28B, worth ₩19B today: 72% 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:

	Low	Typical	High
Price / book (book value ₩9,226 a share)Now 0.44×	₩5,8540.63×	₩7,5270.82×	₩11,0981.20×
Price / earnings (last 12 months: ₩331 a share)Now 12.3×	₩3,72311.2×	₩5,69517.2×	₩14,12542.6×

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%	₩6,749	₩6,945	₩7,184	₩7,485	₩7,873
6.9%	₩6,473	₩6,628	₩6,813	₩7,039	₩7,324
7.4%	₩6,241	₩6,364	₩6,510	₩6,685	₩6,899
7.9%	₩6,042	₩6,142	₩6,258	₩6,396	₩6,561
8.4%	₩5,870	₩5,952	₩6,046	₩6,156	₩6,285

Now (TTM)

Market cap: ₩35B
Enterprise value: ₩5.2B
P/E: 12.3×
P/B: 0.4×
P/S: 1.4×
EV/EBITDA: 1.1×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩6,000	₩6,920	₩7,480	₩7,780	₩8,550
Market cap	₩51B	₩59B	₩64B	₩66B	₩73B
P/E	18.1×	13.1×	50.2×	17.1×	30.6×
P/B	0.7×	0.8×	0.9×	0.9×	1.0×
P/S	2.1×	2.1×	2.1×	1.9×	2.4×
EV/EBITDA	4.6×	10.4×	32.2×	11.6×	20.9×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hyosung ONB	12.3×	0.4×	1.4×	1.1×	0.0%
LG Chem	—	0.5×	0.3×	—	0.8%
Hanwha Solutions	—	0.6×	0.4×	—	0.0%
Hanwha	6.3×	0.4×	0.1×	—	1.4%
SKC	—	2.1×	2.0×	—	0.0%
KCC	0.9×	0.3×	0.5×	8.9×	0.0%
Kumho Petro Chemical	5.3×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.3×	0.4×	0.4×	8.9×	0.4%

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

Also known as: Hyosung ONB / 효성오앤비 / 097870 / KRX:097870

Source: KRX statistical information