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Hecto Innovation

214180 · KOSDAQ · ₩214180 · 헥토이노베이션

₩12,470▼ ₩230 (1.81%)End-of-day · Oct 30, 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

₩100,225

vs the current price (₩12,470)

Enterprise value
₩1T
Equity value
₩1.3T
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 704% 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 ₩12,470, the model needs an operating margin of −1.6% every year (it uses 13.8%).
  • Today's P/E is 6.3× against a typical 6.7× 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
₩70,857
+468.2%
Base
₩100,225
+703.7%
Bull
₩148,547
+1,091.2%

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 (13.8%).

Revenue growth

  • 12.6%

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

    Default: the last 3 years' revenue growth (12.6% a year, annual reports), fading to 3% by year 5.

  • 10.2%

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

    Default: the last 3 years' revenue growth (12.6% a year, annual reports), fading to 3% by year 5.

  • 7.8%

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

    Default: the last 3 years' revenue growth (12.6% a year, annual reports), fading to 3% by year 5.

  • 5.4%

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

    Default: the last 3 years' revenue growth (12.6% 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 (12.6% a year, annual reports), fading to 3% by year 5.

Business

  • 13.8%

    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.

  • 1.6%

    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).

  • 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).

  • -10%

    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.

  • 4.01%

    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.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.34, 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.

  • 5.51%

    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)
₩410B
Net debt (borrowings and leases − cash and deposits)
−₩280B
+ Stakes and investments
₩135B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩143B
Shares
12,993,367
Share price
₩12,470
Market cap
₩162B

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₩288B₩319B₩376B₩461B₩508B₩548B₩578B₩595B
Growth9.7%10.7%17.6%12.6%10.2%7.8%5.4%3.0%
EBIT₩37B₩49B₩50B₩64B₩70B₩76B₩80B₩82B
EBIT margin12.9%15.3%13.4%13.8%13.8%13.8%13.8%13.8%
After-tax EBIT₩27B₩35B₩36B₩46B₩51B₩55B₩58B₩60B
+ Depreciation———₩7.4B₩8.1B₩8.8B₩9.2B₩9.5B
− Capital spending₩4B₩7.3B₩8.8B₩9.2B₩10B₩11B₩12B₩12B
− Working capital₩11B−₩70B−₩48B−₩5.2B−₩4.7B−₩4B−₩3B−₩1.7B
Free cash flow———₩49B₩54B₩57B₩58B₩59B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩46B₩46B₩46B₩44B₩41B

Terminal value ₩1.1T, worth ₩807B today: 78% 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 ₩17,563 a share)Now 0.71×₩14,1760.81×₩18,7651.07×₩29,2071.66×
Price / earnings (last 12 months: ₩1,989 a share)Now 6.27×₩10,9305.49×₩13,3306.70×₩17,3768.74×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,162 a share)Now 5.77×₩11,8785.49×₩14,4866.70×₩18,8838.74×

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%₩102,405₩109,744₩118,792₩130,219₩145,106
6.8%₩95,316₩101,304₩108,542₩117,464₩128,732
7.3%₩89,352₩94,319₩100,225₩107,362₩116,160
7.8%₩84,264₩88,441₩93,340₩99,165₩106,204
8.3%₩79,874₩83,428₩87,548₩92,379₩98,124

Now (TTM)

Market cap
₩162B
Enterprise value
−₩127B
P/E
6.3×
P/B
0.7×
P/S
0.4×
EV/EBITDA
—
Dividend yield
4.0%

Over time (at each year end)

20252024202320222021
Price₩16,120₩12,340₩14,670₩12,050₩20,100
Market cap₩209B₩160B₩191B₩157B₩261B
P/E6.9×5.7×8.4×5.3×12.4×
P/B0.9×0.8×1.1×1.1×1.9×
P/S0.6×0.5×0.7×0.6×1.2×
EV/EBITDA—————
Dividend yield3.1%4.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hecto Innovation6.3×0.7×0.4×—4.0%
NAVER13.0×0.9×2.0×—1.5%
Kakao37.7×1.1×1.6×—0.3%
Daou Technology1.9×0.4×0.0×—5.6%
NICE Information Service11.7×2.1×1.6×6.9×2.9%
Kinx35.7×4.0×5.2×15.6×0.3%
Cafe2411.1×1.5×1.2×—0.0%
Similar companies (median)12.3×1.3×1.6×6.9×0.9%

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

Also known as: Hecto Innovation / 헥토이노베이션 / 214180 / KRX:214180

Source: KRX statistical information