KOSPI · 161390 · Rubber & plastics · ₩161390

Hankook Tire & Technology한국타이어앤테크놀로지

161390 · KOSPI · ₩161390 · 한국타이어앤테크놀로지

₩56,800 ₩0 (0.00%)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

₩336,323

vs the current price (₩56,800)

Enterprise value: ₩44T
Equity value: ₩42T
WACC: 7.3%

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 492% 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 ₩56,800, the model needs an operating margin of 3.9% every year (it uses 10.6%).
Margins ranged from 8.4% to 18.7% 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 5.8× against a typical 6.3× 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: ₩181,958; +220.3%
Base: ₩336,323; +492.1%
Bull: ₩598,996; +954.6%

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 (10.6%).

Revenue growth

Revenue growth, year 125%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (36.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 219.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (36.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 314%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (36.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 48.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (36.2% 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 (36.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin10.6%
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.
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 & amortisation7.1%
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).
Capital spending8.9%
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 capital14.9%
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 rate4.08%
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.
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 0.33, 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)5.58%
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): ₩22T
Net debt (borrowings and leases − cash and deposits): ₩236B
+ Stakes and investments: ₩320B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩2.2T
Shares: 123,875,069
Share price: ₩56,800
Market cap: ₩7T

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	₩8.9T	₩9.4T	₩21T	₩27T	₩33T	₩37T	₩40T	₩42T
Growth	6.5%	5.3%	125.3%	25.0%	19.5%	14.0%	8.5%	3.0%
EBIT	₩1.3T	₩1.8T	₩1.8T	₩2.9T	₩3.5T	₩3.9T	₩4.3T	₩4.4T
EBIT margin	14.9%	18.7%	8.7%	10.6%	10.6%	10.6%	10.6%	10.6%
After-tax EBIT	₩963B	₩1.3T	₩1.3T	₩2.1T	₩2.5T	₩2.9T	₩3.1T	₩3.2T
+ Depreciation	—	—	—	₩1.9T	₩2.3T	₩2.6T	₩2.9T	₩3T
− Capital spending	₩429B	₩1T	₩2.3T	₩2.4T	₩2.9T	₩3.3T	₩3.6T	₩3.7T
− Working capital	−₩1.9T	−₩413B	₩521B	₩814B	₩794B	₩681B	₩472B	₩181B
Free cash flow	—	—	—	₩794B	₩1.1T	₩1.5T	₩1.9T	₩2.3T
Discount factor	—	—	—	0.932	0.869	0.810	0.755	0.704
Present value	—	—	—	₩740B	₩980B	₩1.2T	₩1.4T	₩1.6T

Terminal value ₩54T, worth ₩38T today: 86% 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 ₩108,304 a share)Now 0.52×	₩47,7910.44×	₩56,9650.53×	₩72,1150.67×
Price / earnings (last 12 months: ₩9,792 a share)Now 5.80×	₩42,9304.38×	₩61,3126.26×	₩95,3859.74×
P/E on run-rate earnings (Q2 2026 × 4: ₩9,012 a share)Now 6.30×	₩39,5134.38×	₩56,4316.26×	₩87,7929.74×

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%
6.3%	₩356,449	₩388,236	₩427,420	₩476,940	₩541,534
6.8%	₩320,739	₩346,245	₩377,058	₩415,040	₩463,041
7.3%	₩290,789	₩311,599	₩336,323	₩366,189	₩403,003
7.8%	₩265,323	₩282,540	₩302,710	₩326,672	₩355,618
8.3%	₩243,414	₩257,829	₩274,515	₩294,063	₩317,285

Now (TTM)

Market cap: ₩7T
Enterprise value: ₩7.3T
P/E: 5.8×
P/B: 0.5×
P/S: 0.3×
EV/EBITDA: —
Dividend yield: 4.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩58,300	₩38,400	₩45,400	₩31,150	₩39,700
Market cap	₩7.2T	₩4.8T	₩5.6T	₩3.9T	₩4.9T
P/E	6.6×	4.3×	7.8×	5.6×	8.2×
P/B	0.6×	0.4×	0.6×	0.4×	0.6×
P/S	0.3×	0.5×	0.6×	0.5×	0.7×
EV/EBITDA	—	—	—	—	—
Dividend yield	3.9%	5.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hankook Tire & Technology	5.8×	0.5×	0.3×	—	4.0%
Kumho Tire	3.1×	0.6×	0.3×	—	0.0%
Pum-Tech Korea	19.8×	2.5×	2.1×	—	0.7%
Dongwon Systems	9.7×	0.7×	0.4×	5.7×	2.8%
Nexen Tire	3.6×	0.3×	0.2×	—	3.5%
PI Advanced Materials	12.4×	1.2×	1.7×	5.0×	2.3%
Nexen	2.7×	0.2×	0.1×	—	2.9%
Similar companies (median)	6.6×	0.6×	0.4×	5.4×	2.6%

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

Also known as: Hankook Tire & Technology / 한국타이어앤테크놀로지 / 161390 / KRX:161390

Source: KRX statistical information