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JC Chemical

137950 · KOSDAQ · ₩137950 · 제이씨케미칼

₩3,110▼ ₩100 (3.12%)End-of-day · Oct 28, 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

₩9,332

vs the current price (₩3,110)

Enterprise value
₩398B
Equity value
₩208B
WACC
5.0%

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 200% 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 ₩3,110, the model needs an operating margin of 3.8% every year (it uses 5.4%).
  • Or revenue growth −12.2 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 2.1% to 10.1% 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.
  • Today's P/E is 9.8× against a typical 10.8× 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
₩9,332
+200.1%
Bull
₩35,152
+1,030.3%

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 (5.4%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-10.4% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-10.4% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-10.4% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-10.4% 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 (-10.4% a year, annual reports), fading to 3% by year 5.

Business

  • 5.4%

    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: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 3.8%

    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).

  • 23.3%

    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.

  • 4.11%

    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 -0.29, 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)
₩461B
Net debt (borrowings and leases − cash and deposits)
₩190B
+ Stakes and investments
₩110M
Associates, long-term financial assets and deposits (book value)
Shares
22,267,814
Share price
₩3,110
Market cap
₩69B

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₩439B₩367B₩368B₩415B₩387B₩374B₩373B₩384B
Growth−14.2%−16.4%0.1%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩32B₩11B₩7.7B₩22B₩21B₩20B₩20B₩21B
EBIT margin7.4%2.9%2.1%5.4%5.4%5.4%5.4%5.4%
After-tax EBIT₩23B₩7.7B₩5.6B₩16B₩15B₩15B₩15B₩15B
+ Depreciation₩12B₩12B₩14B₩13B₩12B₩12B₩12B₩12B
− Capital spending₩5.6B₩25B₩12B₩16B₩15B₩14B₩14B₩15B
− Working capital−₩18B−₩2B₩51B−₩11B−₩6.5B−₩3.2B−₩174M₩2.6B
Free cash flow₩47B−₩4B−₩44B₩24B₩19B₩16B₩13B₩10B
Discount factor———0.9530.9080.8650.8240.785
Present value———₩23B₩18B₩13B₩10B₩7.9B

Terminal value ₩414B, worth ₩325B 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 ₩6,636 a share)Now 0.47×₩3,0820.46×₩5,6040.84×₩10,1461.53×
Price / earnings (last 12 months: ₩316 a share)Now 9.85×₩1,5674.96×₩3,41910.8×₩9,22229.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,573 a share)Now 1.98×₩7,8034.96×₩17,02510.8×₩45,92529.2×

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%
4.0%₩11,105₩13,831₩17,940₩24,853₩38,949
4.5%₩8,381₩10,204₩12,763₩16,618₩23,104
5.0%₩6,343₩7,624₩9,332₩11,728₩15,339
5.5%₩4,761₩5,694₩6,891₩8,488₩10,727
6.0%₩3,498₩4,195₩5,065₩6,181₩7,670

Now (TTM)

Market cap
₩69B
Enterprise value
₩259B
P/E
9.8×
P/B
0.5×
P/S
0.2×
EV/EBITDA
9.0×
Dividend yield
1.6%

Over time (at each year end)

20252024202320222021
Price₩3,200₩3,870₩7,280₩6,640₩9,160
Market cap₩71B₩86B₩162B₩148B₩204B
P/E—14.2×7.8×7.2×6.2×
P/B0.5×0.5×1.0×1.0×1.6×
P/S0.2×0.2×0.4×0.3×0.5×
EV/EBITDA11.9×9.0×5.6×5.0×7.1×
Dividend yield1.6%3.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
JC Chemical9.8×0.5×0.2×9.0×1.6%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
Hanwha6.3×0.4×0.1×—1.4%
SKC—2.1×2.0×—0.0%
KCC0.9×0.3×0.5×8.9×0.0%
Kumho Petro Chemical5.3×0.4×0.4×—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: JC Chemical / 제이씨케미칼 / 137950 / KRX:137950

Source: KRX statistical information