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Seoyon E-Hwa

200880 · KOSPI · ₩200880 · 서연이화

₩10,010▲ ₩70 (0.70%)End-of-day · Oct 27, 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

₩156,782

vs the current price (₩10,010)

Enterprise value
₩4.9T
Equity value
₩4.2T
WACC
5.1%

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 1,466% 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 ₩10,010, the model needs an operating margin of 1.6% every year (it uses 4.1%).
  • Today's P/E is 2.1× against a typical 3.8× 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
₩16,683
+66.7%
Base
₩156,782
+1,466.3%
Bull
₩481,390
+4,709.1%

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 (4.1%).

Revenue growth

  • 16.6%

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

    Default: the last 3 years' revenue growth (16.6% a year, annual reports), fading to 3% by year 5.

  • 13.2%

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

    Default: the last 3 years' revenue growth (16.6% a year, annual reports), fading to 3% by year 5.

  • 9.8%

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

    Default: the last 3 years' revenue growth (16.6% a year, annual reports), fading to 3% by year 5.

  • 6.4%

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

    Default: the last 3 years' revenue growth (16.6% 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 (16.6% a year, annual reports), fading to 3% by year 5.

Business

  • 4.1%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 6.2%

    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).

  • 7.7%

    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).

  • 0.4%

    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.

  • 4.03%

    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.

  • 0.7

    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 0.56, 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.

  • 5.53%

    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)
₩4.7T
Net debt (borrowings and leases − cash and deposits)
₩675B
+ Stakes and investments
₩125B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩64B
Shares
27,028,437
Share price
₩10,010
Market cap
₩271B

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₩3.6T₩4T₩4.5T₩5.5T₩6.2T₩6.8T₩7.2T₩7.4T
Growth25.6%13.1%11.5%16.6%13.2%9.8%6.4%3.0%
EBIT₩193B₩154B₩162B₩224B₩253B₩278B₩296B₩305B
EBIT margin5.4%3.8%3.6%4.1%4.1%4.1%4.1%4.1%
After-tax EBIT₩140B₩112B₩117B₩162B₩184B₩202B₩215B₩221B
+ Depreciation———₩339B₩383B₩421B₩448B₩461B
− Capital spending₩262B₩404B₩259B₩420B₩476B₩523B₩556B₩573B
− Working capital−₩105B₩12B₩99B₩3.1B₩2.9B₩2.4B₩1.7B₩866M
Free cash flow———₩77B₩88B₩98B₩105B₩109B
Discount factor———0.9510.9050.8610.8190.779
Present value———₩74B₩80B₩84B₩86B₩85B

Terminal value ₩5.7T, worth ₩4.4T today: 92% 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 ₩48,054 a share)Now 0.21×₩12,5420.26×₩15,6450.33×₩28,1680.59×
Price / earnings (last 12 months: ₩4,714 a share)Now 2.12×₩10,8702.31×₩17,9013.80×₩30,3076.43×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,858 a share)Now 2.06×₩11,2022.31×₩18,4473.80×₩31,2316.43×

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%
4.1%₩163,882₩197,392₩246,721₩326,536₩477,741
4.6%₩136,521₩160,289₩193,134₩241,486₩319,718
5.1%₩115,841₩133,483₩156,782₩188,979₩236,376
5.6%₩99,671₩113,222₩130,517₩153,358₩184,923
6.1%₩86,687₩97,378₩110,664₩127,621₩150,016

Now (TTM)

Market cap
₩271B
Enterprise value
₩868B
P/E
2.1×
P/B
0.2×
P/S
0.1×
EV/EBITDA
—
Dividend yield
2.5%

Over time (at each year end)

20252024202320222021
Price₩13,000₩11,770₩19,180₩7,860₩7,050
Market cap₩351B₩318B₩518B₩212B₩191B
P/E5.9×2.2×3.3×3.8×7.2×
P/B0.3×0.3×0.6×0.3×0.3×
P/S0.1×0.1×0.1×0.1×0.1×
EV/EBITDA—————
Dividend yield1.9%2.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Seoyon E-Hwa2.1×0.2×0.1×—2.5%
Hyundai Mobis8.2×0.6×0.5×—2.0%
SL6.0×0.8×0.4×3.7×0.0%
HL Mando10.5×0.6×0.2×—2.0%
Samhyun—13.0×18.3×—0.0%
Hyundai WIA19.0×0.4×0.2×—2.4%
SNT Dynamics13.6×0.7×0.9×—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: Seoyon E-Hwa / 서연이화 / 200880 / KRX:200880

Source: KRX statistical information