KOSDAQ · 170030 · Auto parts · ₩170030

Hyundai Industrial현대공업

170030 · KOSDAQ · ₩170030 · 현대공업

₩4,570▲ ₩15 (0.33%)End-of-day · Oct 27, 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

₩13,537

vs the current price (₩4,570)

Enterprise value: ₩189B
Equity value: ₩208B
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 196% 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 ₩4,570, the model needs an operating margin of 2.3% every year (it uses 4.6%).
46% 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 3.0× against a typical 8.5× 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: ₩4,071; −10.9%
Base: ₩13,537; +196.2%
Bull: ₩30,561; +568.7%

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 (4.6%).

Revenue growth

Revenue growth, year 19.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.7% 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 (9.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.6%
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 & amortisation0.9%
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).
Capital spending4.2%
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 capital10.9%
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 rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
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)5.53%
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): ₩362B
Net debt (borrowings and leases − cash and deposits): −₩11B
+ Stakes and investments: ₩7.5B; Associates, long-term financial assets and deposits (book value)
Shares: 15,340,000
Share price: ₩4,570
Market cap: ₩70B

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	₩308B	₩327B	₩368B	₩397B	₩429B	₩456B	₩478B	₩492B
Growth	10.4%	6.3%	12.5%	9.7%	8.0%	6.4%	4.7%	3.0%
EBIT	₩15B	₩11B	₩12B	₩18B	₩20B	₩21B	₩22B	₩23B
EBIT margin	5.0%	3.3%	3.3%	4.6%	4.6%	4.6%	4.6%	4.6%
After-tax EBIT	₩11B	₩7.9B	₩8.9B	₩13B	₩14B	₩15B	₩16B	₩16B
+ Depreciation	₩2.8B	₩3B	₩3.4B	₩3.6B	₩3.9B	₩4.1B	₩4.3B	₩4.4B
− Capital spending	₩14B	₩9.9B	₩18B	₩17B	₩18B	₩19B	₩20B	₩21B
− Working capital	−₩29B	₩24B	₩33B	₩3.8B	₩3.5B	₩3B	₩2.3B	₩1.6B
Free cash flow	₩29B	−₩23B	−₩39B	−₩3.7B	−₩3.3B	−₩2.8B	−₩2.2B	−₩1.4B
Discount factor	—	—	—	0.932	0.868	0.809	0.753	0.702
Present value	—	—	—	−₩3.4B	−₩2.9B	−₩2.3B	−₩1.6B	−₩976M

Terminal value ₩285B, worth ₩200B today: 106% 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 ₩11,579 a share)Now 0.39×	₩5,8450.50×	₩8,1840.71×	₩10,5920.91×
Price / earnings (last 12 months: ₩1,504 a share)Now 3.04×	₩5,5803.71×	₩12,7568.48×	₩17,83411.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,764 a share)Now 1.65×	₩10,2543.71×	₩23,4398.48×	₩32,77111.9×

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%
6.3%	₩14,498	₩15,754	₩17,299	₩19,242	₩21,765
6.8%	₩13,007	₩14,010	₩15,217	₩16,701	₩18,568
7.3%	₩11,761	₩12,574	₩13,537	₩14,696	₩16,120
7.8%	₩10,705	₩11,373	₩12,153	₩13,077	₩14,190
8.3%	₩9,801	₩10,356	₩10,996	₩11,745	₩12,632

Now (TTM)

Market cap: ₩70B
Enterprise value: ₩57B
P/E: 3.0×
P/B: 0.4×
P/S: 0.2×
EV/EBITDA: 2.8×
Dividend yield: 6.6%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩6,140	₩4,915	₩7,120	₩6,030	₩8,020
Market cap	₩94B	₩75B	₩109B	₩93B	₩123B
P/E	8.0×	5.9×	8.3×	8.1×	9.8×
P/B	0.6×	0.5×	0.8×	0.7×	1.0×
P/S	0.3×	0.2×	0.4×	0.3×	0.5×
EV/EBITDA	6.3×	3.0×	3.2×	4.0×	6.5×
Dividend yield	4.9%	4.1%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hyundai Industrial	3.0×	0.4×	0.2×	2.8×	6.6%
Hyundai Mobis	8.2×	0.6×	0.5×	—	2.0%
SL	6.0×	0.8×	0.4×	3.7×	0.0%
HL Mando	10.5×	0.6×	0.2×	—	2.0%
Samhyun	—	13.0×	18.3×	—	0.0%
Hyundai WIA	19.0×	0.4×	0.2×	—	2.4%
SNT Dynamics	13.6×	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: Hyundai Industrial / 현대공업 / 170030 / KRX:170030

Source: KRX statistical information