KOSPI · 214390 · Biotech & Pharma · ₩214390

Kyongbo Pharmaceutical경보제약

214390 · KOSPI · ₩214390 · 경보제약

₩5,180▼ ₩10 (0.19%)End-of-day · Oct 28, 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

With these assumptions the model gives no positive value.

Enterprise value: −₩90B
Equity value: −₩228B
WACC: 5.6%

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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩5,180, the model needs an operating margin of 6.3% every year (it uses 1.4%).
Margins ranged from −3.9% to 4.4% 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.
61% 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 25.3× against a typical 44.1× 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: —
Base: —
Bull: —

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 (1.4%).

Revenue growth

Revenue growth, year 110.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.4% 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 (10.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.4%
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 & amortisation7%
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 spending8.8%
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 capital40%
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 0.07, 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): ₩280B
Net debt (borrowings and leases − cash and deposits): ₩145B
+ Stakes and investments: ₩6.4B; Associates, long-term financial assets and deposits (book value)
Shares: 23,906,860
Share price: ₩5,180
Market cap: ₩124B

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	₩216B	₩239B	₩264B	₩309B	₩335B	₩358B	₩375B	₩386B
Growth	10.2%	10.3%	10.7%	10.4%	8.6%	6.7%	4.9%	3.0%
EBIT	₩5.5B	₩10B	₩3.5B	₩4.3B	₩4.7B	₩5B	₩5.3B	₩5.4B
EBIT margin	2.6%	4.4%	1.3%	1.4%	1.4%	1.4%	1.4%	1.4%
After-tax EBIT	₩4B	₩7.6B	₩2.6B	₩3.1B	₩3.4B	₩3.6B	₩3.8B	₩3.9B
+ Depreciation	—	—	—	₩22B	₩23B	₩25B	₩26B	₩27B
− Capital spending	₩11B	₩13B	₩42B	₩27B	₩29B	₩31B	₩33B	₩34B
− Working capital	₩8B	₩18B	₩1.5B	₩12B	₩11B	₩9B	₩7B	₩4.5B
Free cash flow	—	—	—	−₩14B	−₩13B	−₩12B	−₩10B	−₩7.5B
Discount factor	—	—	—	0.947	0.897	0.850	0.805	0.762
Present value	—	—	—	−₩13B	−₩12B	−₩10B	−₩8B	−₩5.7B

Terminal value −₩53B, worth −₩41B today: 45% 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 ₩6,148 a share)Now 0.84×	₩4,8900.80×	₩5,5590.90×	₩6,7781.10×
Price / earnings (last 12 months: ₩205 a share)Now 25.3×	₩4,48221.9×	₩9,02644.1×	₩13,76267.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩586 a share)Now 8.84×	₩12,84421.9×	₩25,86544.1×	₩39,43867.3×

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%
4.6%	—	—	—	—	—
5.1%	—	—	—	—	—
5.6%	—	—	—	—	—
6.1%	—	—	—	—	—
6.6%	—	—	—	—	—

Now (TTM)

Market cap: ₩124B
Enterprise value: ₩266B
P/E: 25.3×
P/B: 0.8×
P/S: 0.4×
EV/EBITDA: —
Dividend yield: 1.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩5,770	₩6,220	₩6,157	₩7,339	₩7,889
Market cap	₩138B	₩149B	₩147B	₩175B	₩189B
P/E	756.7×	32.1×	49.5×	287.3×	—
P/B	0.9×	1.0×	1.0×	1.2×	1.3×
P/S	0.5×	0.6×	0.7×	0.9×	1.1×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.9%	0.8%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Kyongbo Pharmaceutical	25.3×	0.8×	0.4×	—	1.0%
Samsung Biologics	32.0×	7.6×	14.0×	—	0.0%
Celltrion	27.9×	2.5×	9.0×	—	0.0%
Alteogen	80.5×	29.0×	61.2×	—	0.1%
SK biopharmaceuticals	14.7×	5.8×	6.8×	—	0.0%
Yuhan	24.0×	2.4×	2.5×	31.3×	0.8%
HLB	—	15.7×	55.6×	—	0.0%
Similar companies (median)	27.9×	6.7×	11.5×	31.3×	0.0%

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

Also known as: Kyongbo Pharmaceutical / 경보제약 / 214390 / KRX:214390

Source: KRX statistical information