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Dongsung Chemical

102260 · KOSPI · ₩102260 · 동성케미컬

₩3,480▲ ₩30 (0.87%)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

₩21,668

vs the current price (₩3,480)

Enterprise value
₩1.3T
Equity value
₩1.1T
WACC
6.2%

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 is 523% 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 ₩3,480, the model needs an operating margin of 3.4% every year (it uses 7.5%).
  • Or revenue growth −26.3 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 4.2× against a typical 5.7× 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
₩7,237
+108.0%
Base
₩21,668
+522.7%
Bull
₩49,375
+1,318.8%

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 (7.5%).

Revenue growth

  • 2%

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

    Default: the last 3 years' revenue growth (2% a year, annual reports), fading to 3% by year 5.

  • 2.3%

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

    Default: the last 3 years' revenue growth (2% a year, annual reports), fading to 3% by year 5.

  • 2.5%

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

    Default: the last 3 years' revenue growth (2% a year, annual reports), fading to 3% by year 5.

  • 2.8%

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

    Default: the last 3 years' revenue growth (2% 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 (2% a year, annual reports), fading to 3% by year 5.

Business

  • 7.5%

    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.

  • 2.5%

    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).

  • 6.2%

    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).

  • 11%

    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 0.14, 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)
₩1.3T
Net debt (borrowings and leases − cash and deposits)
₩97B
+ Stakes and investments
₩60B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩206B
Shares
50,669,591
Share price
₩3,480
Market cap
₩176B

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₩1.1T₩1.1T₩1.2T₩1.3T₩1.3T₩1.3T₩1.4T₩1.4T
Growth−1.9%−4.6%13.6%2.0%2.3%2.5%2.8%3.0%
EBIT₩82B₩91B₩112B₩96B₩98B₩100B₩103B₩106B
EBIT margin7.3%8.5%9.2%7.5%7.5%7.5%7.5%7.5%
After-tax EBIT₩59B₩66B₩81B₩69B₩71B₩73B₩75B₩77B
+ Depreciation₩25B₩25B₩35B₩32B₩33B₩33B₩34B₩35B
− Capital spending₩53B₩96B₩58B₩79B₩81B₩83B₩85B₩88B
− Working capital−₩4.6B−₩34B₩5.4B₩2.8B₩3.2B₩3.6B₩4.1B₩4.5B
Free cash flow₩36B₩29B₩52B₩19B₩19B₩20B₩20B₩20B
Discount factor———0.9410.8860.8340.7850.739
Present value———₩18B₩17B₩16B₩16B₩15B

Terminal value ₩1.7T, worth ₩1.3T today: 94% 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 ₩9,599 a share)Now 0.36×₩3,9960.42×₩5,4390.57×₩6,6290.69×
Price / earnings (last 12 months: ₩833 a share)Now 4.18×₩4,0584.87×₩4,7695.73×₩8,33210.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,063 a share)Now 3.27×₩5,1804.87×₩6,0875.73×₩10,63610.0×

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%
5.2%₩23,233₩26,597₩31,001₩37,020₩45,741
5.7%₩19,866₩22,439₩25,701₩29,972₩35,807
6.2%₩17,154₩19,173₩21,668₩24,831₩28,971
6.7%₩14,925₩16,542₩18,500₩20,919₩23,984
7.2%₩13,062₩14,380₩15,948₩17,845₩20,190

Now (TTM)

Market cap
₩176B
Enterprise value
₩254B
P/E
4.2×
P/B
0.4×
P/S
0.1×
EV/EBITDA
1.5×
Dividend yield
4.3%

Over time (at each year end)

20252024202320222021
Price₩4,250₩3,745₩4,500₩4,730₩4,795
Market cap₩215B₩190B₩228B₩240B₩243B
P/E6.5×4.2×6.8×6.8×13.6×
P/B0.5×0.4×0.6×0.6×0.7×
P/S0.2×0.2×0.2×0.2×0.3×
EV/EBITDA1.4×1.6×2.7×4.1×4.6×
Dividend yield3.5%1.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dongsung Chemical4.2×0.4×0.1×1.5×4.3%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
Hanwha6.3×0.4×0.1×—1.4%
SKC—2.1×2.0×—0.0%
KCC0.9×0.3×0.5×8.9×0.0%
Kumho Petro Chemical5.3×0.4×0.4×—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: Dongsung Chemical / 동성케미컬 / 102260 / KRX:102260

Source: KRX statistical information