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SJM

123700 · KOSPI · ₩123700 · SJM

₩3,100▲ ₩30 (0.98%)End-of-day · Oct 27, 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

₩14,077

vs the current price (₩3,100)

Enterprise value
₩126B
Equity value
₩220B
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 354% 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 ₩3,100, the model needs an operating margin of −0.0% every year (it uses 5.7%).
  • 57% 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 2.7× against a typical 3.7× 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
₩9,683
+212.4%
Base
₩14,077
+354.1%
Bull
₩22,095
+612.8%

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 (5.7%).

Revenue growth

  • 3.8%

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

    Default: the last 3 years' revenue growth (3.8% a year, annual reports), fading to 3% by year 5.

  • 3.6%

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

    Default: the last 3 years' revenue growth (3.8% a year, annual reports), fading to 3% by year 5.

  • 3.4%

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

    Default: the last 3 years' revenue growth (3.8% a year, annual reports), fading to 3% by year 5.

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.8% 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 (3.8% a year, annual reports), fading to 3% by year 5.

Business

  • 5.7%

    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).

  • 40%

    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 0.18, 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)
₩205B
Net debt (borrowings and leases − cash and deposits)
−₩96B
+ Stakes and investments
₩6.1B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩9B
Shares
15,604,898
Share price
₩3,100
Market cap
₩48B

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₩199B₩202B₩201B₩213B₩221B₩228B₩235B₩242B
Growth10.3%1.5%−0.2%3.8%3.6%3.4%3.2%3.0%
EBIT₩13B₩14B₩11B₩12B₩13B₩13B₩13B₩14B
EBIT margin6.7%7.1%5.6%5.7%5.7%5.7%5.7%5.7%
After-tax EBIT₩9.6B₩10B₩8.2B₩8.8B₩9.1B₩9.4B₩9.7B₩10B
+ Depreciation———₩2.3B₩2.4B₩2.5B₩2.6B₩2.7B
− Capital spending₩150M₩80M₩8.1B₩3B₩3.1B₩3.2B₩3.3B₩3.4B
− Working capital−₩461M₩10B−₩8B₩3.1B₩3.1B₩3B₩2.9B₩2.8B
Free cash flow———₩5B₩5.4B₩5.7B₩6.1B₩6.5B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩4.7B₩4.7B₩4.6B₩4.6B₩4.5B

Terminal value ₩147B, worth ₩103B today: 82% 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 ₩15,965 a share)Now 0.19×₩3,4590.22×₩4,5550.29×₩5,9130.37×
Price / earnings (last 12 months: ₩1,153 a share)Now 2.69×₩3,0872.68×₩4,2813.71×₩12,55110.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,559 a share)Now 1.99×₩4,1752.68×₩5,7903.71×₩16,97410.9×

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%₩15,219₩15,575₩16,006₩16,542₩17,229
6.9%₩14,382₩14,639₩14,943₩15,311₩15,768
7.4%₩13,677₩13,862₩14,077₩14,332₩14,640
7.9%₩13,075₩13,208₩13,359₩13,534₩13,741
8.4%₩12,556₩12,649₩12,754₩12,872₩13,009

Now (TTM)

Market cap
₩48B
Enterprise value
−₩54B
P/E
2.7×
P/B
0.2×
P/S
0.2×
EV/EBITDA
—
Dividend yield
6.6%

Over time (at each year end)

20252024202320222021
Price₩3,755₩2,880₩3,635₩4,200₩4,900
Market cap₩59B₩45B₩57B₩66B₩76B
P/E4.8×2.2×3.2×13.3×17.2×
P/B0.3×0.2×0.3×0.4×0.4×
P/S0.3×0.2×0.3×0.4×0.5×
EV/EBITDA————3.0×
Dividend yield5.5%6.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SJM2.7×0.2×0.2×—6.6%
Hyundai Mobis8.2×0.6×0.5×—2.0%
SL6.0×0.8×0.4×3.7×0.0%
HL Mando10.5×0.6×0.2×—2.0%
Samhyun—13.0×18.3×—0.0%
Hyundai WIA19.0×0.4×0.2×—2.4%
SNT Dynamics13.6×0.7×0.9×—6.7%
Similar companies (median)10.5×0.7×0.4×3.7×2.0%

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

Also known as: SJM / 123700 / KRX:123700

Source: KRX statistical information