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Chemtros

220260 · KOSDAQ · ₩220260 · 켐트로스

₩4,290▲ ₩100 (2.39%)End-of-day · Oct 28, 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

₩1,328

vs the current price (₩4,290)

Enterprise value
₩38B
Equity value
₩43B
WACC
7.5%

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 69% 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 ₩4,290, the model needs an operating margin of 17.8% every year (it uses 7.6%).
  • Or revenue growth +26.7 points a year higher than assumed in each of the 5 years.
  • 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 64.0× against a typical 61.0× 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
₩526
−87.7%
Base
₩1,328
−69.0%
Bull
₩2,714
−36.7%

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 (7.6%).

Revenue growth

  • -0.1%

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

    Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.

  • 0.7%

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

    Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.

  • 1.4%

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

    Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.

  • 2.2%

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

    Default: the last 3 years' revenue growth (-0.1% 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 (-0.1% a year, annual reports), fading to 3% by year 5.

Business

  • 7.6%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

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

  • 20.4%

    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).

  • 25.4%

    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.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.62

    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 0.43, 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.

  • 5.61%

    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)
₩71B
Net debt (borrowings and leases − cash and deposits)
−₩4.6B
Shares
32,072,055
Share price
₩4,290
Market cap
₩138B

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₩47B₩50B₩57B₩71B₩72B₩73B₩74B₩76B
Growth−16.8%6.0%12.9%−0.1%0.7%1.4%2.2%3.0%
EBIT₩3.4B₩3.8B₩1B₩5.4B₩5.4B₩5.5B₩5.6B₩5.8B
EBIT margin7.2%7.5%1.8%7.6%7.6%7.6%7.6%7.6%
After-tax EBIT₩2.5B₩2.7B₩760M₩3.9B₩3.9B₩4B₩4.1B₩4.2B
+ Depreciation———₩15B₩15B₩15B₩15B₩16B
− Capital spending₩17B₩7B₩15B₩18B₩18B₩18B₩19B₩19B
− Working capital−₩19B−₩2.8B−₩9.4B₩7.1M−₩50M−₩100M−₩160M−₩223M
Free cash flow———₩356M₩415M₩471M₩538M₩612M
Discount factor———0.9300.8650.8050.7480.696
Present value———₩331M₩359M₩379M₩403M₩426M

Terminal value ₩52B, worth ₩36B today: 95% 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 ₩3,150 a share)Now 1.36×₩5,5871.77×₩10,7933.43×₩19,2746.12×
Price / earnings (last 12 months: ₩67 a share)Now 64.0×₩2,38635.6×₩4,09061.0×₩5,26878.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩470 a share)Now 9.12×₩16,74035.6×₩28,69461.0×₩36,95578.6×

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%
6.5%₩1,341₩1,478₩1,645₩1,854₩2,123
7.0%₩1,221₩1,335₩1,471₩1,637₩1,845
7.5%₩1,121₩1,216₩1,328₩1,464₩1,629
8.0%₩1,035₩1,116₩1,210₩1,322₩1,456
8.5%₩961₩1,031₩1,111₩1,205₩1,316

Now (TTM)

Market cap
₩138B
Enterprise value
₩133B
P/E
64.0×
P/B
1.4×
P/S
1.9×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,450₩4,885₩7,160₩6,970₩12,700
Market cap₩239B₩157B₩230B₩224B₩407B
P/E—30.5×81.9×58.7×92.4×
P/B4.4×2.4×3.7×3.8×7.4×
P/S4.2×3.1×4.8×3.9×8.4×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Chemtros64.0×1.4×1.9×—0.0%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
Hanwha6.3×0.4×0.1×—1.4%
SKC—2.1×2.0×—0.0%
KCC0.9×0.3×0.5×8.9×0.0%
Kumho Petro Chemical5.3×0.4×0.4×—1.6%
Similar companies (median)5.3×0.4×0.4×8.9×0.4%

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

Also known as: Chemtros / 켐트로스 / 220260 / KRX:220260

Source: KRX statistical information