KOSDAQ · 126600 · Chemicals · ₩126600

BGFecomaterialsBGF에코머티리얼즈

126600 · KOSDAQ · ₩126600 · BGF에코머티리얼즈

₩3,240▲ ₩10 (0.31%)End-of-day · Oct 29, 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

₩249

vs the current price (₩3,240)

Enterprise value: ₩156B
Equity value: ₩16B
WACC: 6.6%

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 92% 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 ₩3,240, the model needs an operating margin of 7.3% every year (it uses 5.1%).
Or revenue growth +29.5 points a year higher than assumed in each of the 5 years.
56% 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.
Today's P/E is 11.5× against a typical 15.5× 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: ₩249; −92.3%
Bull: ₩5,555; +71.4%

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 (5.1%).

Revenue growth

Revenue growth, year 114.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 211.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 38.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.8% 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 (14.8% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin5.1%
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 & amortisation13%
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).
Capital spending16.2%
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).
Working capital23.3%
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

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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
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 0.13, 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)5.51%
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): ₩391B
Net debt (borrowings and leases − cash and deposits): ₩57B
+ Stakes and investments: ₩302M; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩84B
Shares: 62,766,899
Share price: ₩3,240
Market cap: ₩203B

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	₩286B	₩364B	₩398B	₩448B	₩501B	₩546B	₩578B	₩595B
Growth	8.5%	27.5%	9.2%	14.8%	11.8%	8.9%	5.9%	3.0%
EBIT	₩17B	₩14B	₩17B	₩23B	₩26B	₩28B	₩29B	₩30B
EBIT margin	6.0%	3.8%	4.4%	5.1%	5.1%	5.1%	5.1%	5.1%
After-tax EBIT	₩12B	₩10B	₩13B	₩17B	₩19B	₩20B	₩21B	₩22B
+ Depreciation	—	—	—	₩58B	₩65B	₩71B	₩75B	₩77B
− Capital spending	₩19B	₩46B	₩116B	₩73B	₩81B	₩88B	₩94B	₩96B
− Working capital	−₩3.6B	₩15B	−₩37B	₩13B	₩12B	₩10B	₩7.5B	₩4B
Free cash flow	—	—	—	−₩11B	−₩9.8B	−₩7.7B	−₩4.6B	−₩1.1B
Discount factor	—	—	—	0.938	0.880	0.826	0.775	0.727
Present value	—	—	—	−₩11B	−₩8.7B	−₩6.3B	−₩3.6B	−₩784M

Terminal value ₩256B, worth ₩186B today: 119% 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 ₩6,698 a share)Now 0.48×	₩3,0030.45×	₩5,1160.76×	₩18,0702.70×
Price / earnings (last 12 months: ₩281 a share)Now 11.5×	₩3,24011.5×	₩4,35115.5×	₩11,47540.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩279 a share)Now 11.6×	₩3,21011.5×	₩4,31115.5×	₩11,37140.8×

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%
5.6%	₩723	₩954	₩1,248	₩1,635	₩2,167
6.1%	₩316	₩482	₩686	₩944	₩1,284
6.6%	—	₩105	₩249	₩426	₩651
7.1%	—	—	—	₩24	₩176
7.6%	—	—	—	—	—

Now (TTM)

Market cap: ₩203B
Enterprise value: ₩260B
P/E: 11.5×
P/B: 0.5×
P/S: 0.5×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,660	₩2,830	₩4,480	₩4,567	₩10,265
Market cap	₩230B	₩178B	₩281B	₩287B	₩644B
P/E	16.4×	11.5×	—	9.9×	812.2×
P/B	0.6×	0.4×	0.8×	1.4×	4.1×
P/S	0.6×	0.5×	1.0×	1.1×	3.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
BGFecomaterials	11.5×	0.5×	0.5×	—	0.0%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.5×	0.3×	—	0.0%
Hanwha	6.1×	0.4×	0.1×	—	1.4%
SKC	—	1.8×	1.7×	—	0.0%
KCC	0.9×	0.3×	0.5×	9.0×	0.0%
Kumho Petro Chemical	5.2×	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: BGFecomaterials / BGF에코머티리얼즈 / 126600 / KRX:126600

Source: KRX statistical information