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Hankook Cosmetics

123690 · KOSPI · ₩123690 · 한국화장품

₩5,360▼ ₩200 (3.60%)End-of-day · Oct 29, 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

₩1,670

vs the current price (₩5,360)

Enterprise value
₩13B
Equity value
₩27B
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 69% 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 ₩5,360, the model needs an operating margin of 5.7% every year (it uses 1.3%).
  • Or revenue growth +48.5 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −4.8% to 4.0% 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.
  • 51% 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.
  • Today's P/E is 97.8× against a typical 36.6× 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
₩221
−95.9%
Base
₩1,670
−68.8%
Bull
₩4,346
−18.9%

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 (1.3%).

Revenue growth

  • 8.8%

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

    Default: the last 3 years' revenue growth (8.8% a year, annual reports), fading to 3% by year 5.

  • 7.3%

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

    Default: the last 3 years' revenue growth (8.8% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (8.8% a year, annual reports), fading to 3% by year 5.

  • 4.4%

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

    Default: the last 3 years' revenue growth (8.8% 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 (8.8% a year, annual reports), fading to 3% by year 5.

Business

  • 1.3%

    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.

  • 1.1%

    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).

  • 1.4%

    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).

  • 2.3%

    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 0.31, 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)
₩82B
Net debt (borrowings and leases − cash and deposits)
−₩13B
− Minority interests
₩66M
Shares
16,068,000
Share price
₩5,360
Market cap
₩86B

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₩79B₩93B₩85B₩89B₩96B₩101B₩106B₩109B
Growth19.2%17.9%−8.4%8.8%7.3%5.9%4.4%3.0%
EBIT₩3.1B₩3.7B₩528M₩1.2B₩1.2B₩1.3B₩1.4B₩1.4B
EBIT margin3.9%4.0%0.6%1.3%1.3%1.3%1.3%1.3%
After-tax EBIT₩2.2B₩2.7B₩382M₩840M₩901M₩954M₩996M₩1B
+ Depreciation———₩980M₩1.1B₩1.1B₩1.2B₩1.2B
− Capital spending₩958M₩1.8B₩793M₩1.2B₩1.3B₩1.4B₩1.5B₩1.5B
− Working capital₩333M₩4B₩109M₩166M₩150M₩130M₩102M₩73M
Free cash flow———₩407M₩465M₩521M₩576M₩626M
Discount factor———0.9310.8670.8080.7520.700
Present value———₩379M₩403M₩420M₩434M₩439M

Terminal value ₩16B, worth ₩11B today: 85% 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 ₩2,169 a share)Now 2.47×₩7,3043.37×₩10,0224.62×₩12,9195.96×
Price / earnings (last 12 months: ₩55 a share)Now 97.8×₩1,24022.6×₩2,00836.6×₩4,16075.9×

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%₩1,722₩1,792₩1,877₩1,984₩2,123
6.9%₩1,640₩1,696₩1,763₩1,845₩1,949
7.4%₩1,571₩1,616₩1,670₩1,735₩1,814
7.9%₩1,512₩1,549₩1,593₩1,645₩1,708
8.4%₩1,461₩1,492₩1,529₩1,571₩1,621

Now (TTM)

Market cap
₩86B
Enterprise value
₩70B
P/E
97.8×
P/B
2.5×
P/S
1.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩10,040₩6,210₩6,350₩8,140₩8,710
Market cap₩161B₩100B₩102B₩131B₩140B
P/E143.1×21.7×29.1×218.9×—
P/B4.8×3.3×4.0×5.8×6.4×
P/S1.9×1.1×1.3×2.0×2.1×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hankook Cosmetics97.8×2.5×1.1×—0.0%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.5×1.2×0.3×—3.8%
ISC45.4×6.1×12.7×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies19.2×1.6×5.1×—4.1%
Shinsegae13.9×0.4×0.3×—2.1%
Similar companies (median)16.3×1.0×1.0×—2.6%

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

Also known as: Hankook Cosmetics / 한국화장품 / 123690 / KRX:123690

Source: KRX statistical information