Ask Warren

Jeonjinbio

110020 · KOSDAQ · ₩110020 · 전진바이오팜

₩2,050▼ ₩30 (1.44%)End-of-day · Oct 29, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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
−₩44B
Equity value
−₩38B
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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩2,050, the model needs an operating margin of 5.8% every year (it uses −13.6%).
  • Margins ranged from −94.3% to 6.0% 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
—
Base
—
Bull
—

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 (−13.6%).

Revenue growth

  • 20.7%

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

    Default: the last 3 years' revenue growth (20.7% a year, annual reports), fading to 3% by year 5.

  • 16.3%

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

    Default: the last 3 years' revenue growth (20.7% a year, annual reports), fading to 3% by year 5.

  • 11.8%

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

    Default: the last 3 years' revenue growth (20.7% a year, annual reports), fading to 3% by year 5.

  • 7.4%

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

    Default: the last 3 years' revenue growth (20.7% 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 (20.7% a year, annual reports), fading to 3% by year 5.

Business

  • -13.6%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 3.2%

    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).

  • 4%

    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).

  • 18.6%

    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.

  • 4.08%

    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.

  • 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 0.4, 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.

  • 5.58%

    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)
₩14B
Net debt (borrowings and leases − cash and deposits)
−₩6.3B
Shares
9,058,762
Share price
₩2,050
Market cap
₩19B

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₩16B₩19B₩14B₩17B₩19B₩22B₩23B₩24B
Growth101.2%22.9%−28.9%20.7%16.3%11.8%7.4%3.0%
EBIT−₩1.2B₩1.2B−₩343M−₩2.3B−₩2.6B−₩2.9B−₩3.1B−₩3.2B
EBIT margin−7.9%6.0%−2.5%−13.6%−13.6%−13.6%−13.6%−13.6%
After-tax EBIT−₩903M₩840M−₩249M−₩1.6B−₩1.9B−₩2.1B−₩2.3B−₩2.3B
+ Depreciation———₩530M₩616M₩689M₩740M₩762M
− Capital spending₩672M₩394M₩791M₩662M₩770M₩861M₩925M₩952M
− Working capital₩2.5B−₩1.2B−₩590M₩528M₩502M₩423M₩296M₩129M
Free cash flow———−₩2.3B−₩2.6B−₩2.7B−₩2.8B−₩2.7B
Discount factor———0.9310.8670.8080.7520.700
Present value———−₩2.1B−₩2.2B−₩2.2B−₩2.1B−₩1.9B

Terminal value −₩48B, worth −₩33B today: 76% 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 ₩1,879 a share)Now 1.09×₩2,1051.12×₩6,3213.36×₩15,2798.13×

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%—————
6.9%—————
7.4%—————
7.9%—————
8.4%—————

Now (TTM)

Market cap
₩19B
Enterprise value
₩12B
P/E
—
P/B
1.1×
P/S
1.4×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,520₩2,350₩8,030₩3,740₩5,400
Market cap₩23B₩21B₩73B₩34B₩49B
P/E—4.9×———
P/B1.3×1.2×11.7×3.6×4.5×
P/S1.7×1.1×4.6×4.3×15.2×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Jeonjinbio—1.1×1.4×—0.0%
LG Chem—0.5×0.3×—0.9%
Hanwha Solutions—0.5×0.3×—0.0%
Hanwha6.1×0.4×0.1×—1.4%
SKC—1.8×1.7×—0.0%
KCC0.9×0.3×0.5×9.0×0.0%
Kumho Petro Chemical5.2×0.4×0.4×—1.6%
Similar companies (median)5.2×0.4×0.4×9.0×0.4%

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

Also known as: Jeonjinbio / 전진바이오팜 / 110020 / KRX:110020

Source: KRX statistical information