KOSPI · 185750 · Biotech & Pharma · ₩185750

Chong Kun Dang Pharmaceutical종근당

185750 · KOSPI · ₩185750 · 종근당

₩63,100▲ ₩600 (0.96%)End-of-day · Oct 30, 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

₩92,334

vs the current price (₩63,100)

Enterprise value: ₩1.4T
Equity value: ₩1.3T
WACC: 6.8%

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 46% 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 ₩63,100, the model needs an operating margin of 5.0% every year (it uses 6.4%).
Or revenue growth −10.0 points a year higher than assumed in each of the 5 years.
Margins ranged from 4.8% to 14.8% 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 11.0× against a typical 11.9× 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: ₩34,992; −44.5%
Base: ₩92,334; +46.3%
Bull: ₩198,247; +214.2%

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 (6.4%).

Revenue growth

Revenue growth, year 14.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 24%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 33.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (4.4% 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 (4.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin6.4%
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.
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 & amortisation5%
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 spending6.3%
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 capital20.8%
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 0.12, 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): ₩1.8T
Net debt (borrowings and leases − cash and deposits): ₩151B
+ Stakes and investments: ₩4.2B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩2.8B
Shares: 13,802,780
Share price: ₩63,100
Market cap: ₩871B

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	₩1.7T	₩1.6T	₩1.7T	₩1.9T	₩1.9T	₩2T	₩2.1T	₩2.1T
Growth	12.2%	−5.0%	6.7%	4.4%	4.0%	3.7%	3.3%	3.0%
EBIT	₩247B	₩99B	₩81B	₩119B	₩124B	₩128B	₩133B	₩137B
EBIT margin	14.8%	6.3%	4.8%	6.4%	6.4%	6.4%	6.4%	6.4%
After-tax EBIT	₩179B	₩72B	₩58B	₩86B	₩90B	₩93B	₩96B	₩99B
+ Depreciation	—	—	—	₩93B	₩97B	₩100B	₩104B	₩107B
− Capital spending	₩69B	₩66B	₩179B	₩117B	₩122B	₩126B	₩131B	₩135B
− Working capital	−₩91B	₩105B	₩55B	₩16B	₩15B	₩15B	₩14B	₩13B
Free cash flow	—	—	—	₩46B	₩49B	₩52B	₩55B	₩58B
Discount factor	—	—	—	0.936	0.876	0.820	0.768	0.719
Present value	—	—	—	₩43B	₩43B	₩43B	₩43B	₩42B

Terminal value ₩1.7T, worth ₩1.2T today: 85% 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 ₩73,571 a share)Now 0.86×	₩86,7011.18×	₩118,9281.62×	₩153,6642.09×
Price / earnings (last 12 months: ₩5,758 a share)Now 11.0×	₩37,4176.50×	₩68,40011.9×	₩131,19322.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩5,794 a share)Now 10.9×	₩37,6546.50×	₩68,83311.9×	₩132,02422.8×

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%
5.8%	₩101,180	₩109,983	₩121,059	₩135,435	₩154,866
6.3%	₩89,897	₩96,688	₩105,024	₩115,511	₩129,121
6.8%	₩80,571	₩85,911	₩92,334	₩100,217	₩110,134
7.3%	₩72,737	₩77,001	₩82,045	₩88,112	₩95,558
7.8%	₩66,066	₩69,515	₩73,538	₩78,296	₩84,019

Now (TTM)

Market cap: ₩871B
Enterprise value: ₩1T
P/E: 11.0×
P/B: 0.9×
P/S: 0.5×
EV/EBITDA: —
Dividend yield: 0.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩82,900	₩89,000	₩125,042	₩74,848	₩96,616
Market cap	₩1.1T	₩1.2T	₩1.7T	₩1T	₩1.3T
P/E	14.8×	11.3×	8.1×	12.8×	31.2×
P/B	1.1×	1.4×	2.1×	1.7×	2.4×
P/S	0.7×	0.8×	1.0×	0.7×	1.0×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.6%	1.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Chong Kun Dang Pharmaceutical	11.0×	0.9×	0.5×	—	0.8%
Samsung Biologics	34.7×	8.2×	15.1×	—	0.0%
Celltrion	28.2×	2.5×	9.1×	—	0.0%
Alteogen	76.3×	27.5×	58.0×	—	0.1%
SK biopharmaceuticals	15.2×	6.0×	7.1×	—	0.0%
Yuhan	23.3×	2.3×	2.4×	30.4×	0.8%
HLB	—	15.5×	54.7×	—	0.0%
Similar companies (median)	28.2×	7.1×	12.1×	30.4×	0.0%

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

Also known as: Chong Kun Dang Pharmaceutical / 종근당 / 185750 / KRX:185750

Source: KRX statistical information