KOSDAQ · 104480 · Chemicals · ₩104480

TK Chemical티케이케미칼

104480 · KOSDAQ · ₩104480 · 티케이케미칼

₩1,764▲ ₩9 (0.51%)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

With these assumptions the model gives no positive value.

Enterprise value: ₩56B
Equity value: −₩25B
WACC: 6.3%

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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩1,764, the model needs an operating margin of 5.5% every year (it uses 2.0%).
Or revenue growth +26.7 points a year higher than assumed in each of the 5 years.
Margins ranged from −7.7% to 9.9% 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.
80% 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.
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.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 1.5× against a typical 1.5× 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: —
Bull: ₩2,009; +13.9%

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 (2.0%).

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 (-22.9% 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 (-22.9% 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 (-22.9% 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 (-22.9% 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 (-22.9% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2%
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 & amortisation0.6%
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 spending4%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: not in the statements, so a typical level.
Working capital-2.2%
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

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 0.15, 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 (TTM to H1 2026): ₩401B
Net debt (borrowings and leases − cash and deposits): ₩80B
Shares: 90,895,434
Share price: ₩1,764
Market cap: ₩160B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩416B	₩340B	₩346B	₩361B	₩337B	₩325B	₩324B	₩334B
Growth	−44.7%	−18.4%	1.8%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	−₩32B	−₩1.6B	₩2.4B	₩7.2B	₩6.7B	₩6.5B	₩6.5B	₩6.7B
EBIT margin	−7.7%	−0.5%	0.7%	2.0%	2.0%	2.0%	2.0%	2.0%
After-tax EBIT	−₩23B	−₩1.1B	₩1.7B	₩5.2B	₩4.9B	₩4.7B	₩4.7B	₩4.8B
+ Depreciation	₩2.5B	₩2.5B	₩2.1B	₩2.2B	₩2B	₩1.9B	₩1.9B	₩2B
− Capital spending	—	—	—	₩14B	₩13B	₩13B	₩13B	₩13B
− Working capital	−₩15B	−₩174B	₩105B	₩882M	₩532M	₩259M	₩14M	−₩214M
Free cash flow	—	—	—	−₩7.9B	−₩7.1B	−₩6.6B	−₩6.3B	−₩6.3B
Discount factor	—	—	—	0.941	0.886	0.833	0.784	0.738
Present value	—	—	—	−₩7.5B	−₩6.3B	−₩5.5B	−₩5B	−₩4.6B

Terminal value ₩114B, worth ₩84B today: 152% 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 ₩14,594 a share)Now 0.12×	₩1,7570.12×	₩2,4320.17×	₩9,9520.68×
Price / earnings (last 12 months: ₩1,205 a share)Now 1.46×	₩9610.80×	₩1,8331.52×	₩28,45123.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,486 a share)Now 1.19×	₩1,1860.80×	₩2,2601.52×	₩35,08423.6×

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%
5.3%	—	—	₩63	₩312	₩671
5.8%	—	—	—	₩53	₩299
6.3%	—	—	—	—	₩44
6.8%	—	—	—	—	—
7.3%	—	—	—	—	—

Now (TTM)

Market cap: ₩160B
Enterprise value: ₩240B
P/E: 1.5×
P/B: 0.1×
P/S: 0.4×
EV/EBITDA: 7.4×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩1,570	₩1,744	₩1,781	₩2,830	₩5,680
Market cap	₩143B	₩159B	₩162B	₩257B	₩516B
P/E	1.2×	—	—	0.9×	1.5×
P/B	0.1×	0.1×	0.2×	0.3×	0.8×
P/S	0.4×	0.5×	0.4×	0.3×	0.8×
EV/EBITDA	35.4×	188.9×	—	67.4×	9.9×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
TK Chemical	1.5×	0.1×	0.4×	7.4×	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: TK Chemical / 티케이케미칼 / 104480 / KRX:104480

Source: KRX statistical information