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Kdchem

221980 · KOSDAQ · ₩221980 · 케이디켐

₩9,290▲ ₩70 (0.76%)End-of-day · Oct 29, 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

₩32,702

vs the current price (₩9,290)

Enterprise value
₩86B
Equity value
₩132B
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 252% 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 ₩9,290, the model needs an operating margin of 0.3% every year (it uses 11.1%).
  • 42% 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.
  • Today's P/E is 4.5× against a typical 8.0× 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
₩24,630
+165.1%
Base
₩32,702
+252.0%
Bull
₩46,675
+402.4%

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 (11.1%).

Revenue growth

  • 0.4%

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

    Default: the last 3 years' revenue growth (0.4% a year, annual reports), fading to 3% by year 5.

  • 1.1%

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

    Default: the last 3 years' revenue growth (0.4% a year, annual reports), fading to 3% by year 5.

  • 1.7%

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

    Default: the last 3 years' revenue growth (0.4% a year, annual reports), fading to 3% by year 5.

  • 2.4%

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

    Default: the last 3 years' revenue growth (0.4% 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 (0.4% a year, annual reports), fading to 3% by year 5.

Business

  • 11.1%

    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.

  • 0.9%

    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).

  • 1.1%

    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).

  • 40%

    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: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.02, 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)
₩63B
Net debt (borrowings and leases − cash and deposits)
−₩23B
+ Stakes and investments
₩23B
Associates, long-term financial assets and deposits (book value)
Shares
4,034,800
Share price
₩9,290
Market cap
₩37B

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₩59B₩62B₩63B₩64B₩64B₩66B₩67B₩69B
Growth−4.8%5.5%0.8%0.4%1.1%1.7%2.4%3.0%
EBIT₩6.3B₩7.5B₩7B₩7.1B₩7.2B₩7.3B₩7.4B₩7.7B
EBIT margin10.6%12.0%11.1%11.1%11.1%11.1%11.1%11.1%
After-tax EBIT₩4.5B₩5.4B₩5.1B₩5.1B₩5.2B₩5.3B₩5.4B₩5.6B
+ Depreciation———₩574M₩580M₩590M₩604M₩622M
− Capital spending₩839M₩609M₩504M₩701M₩709M₩721M₩738M₩760M
− Working capital₩5.9B−₩5.5B−₩5B₩102M₩280M₩438M₩629M₩805M
Free cash flow———₩4.9B₩4.8B₩4.7B₩4.6B₩4.6B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩4.6B₩4.1B₩3.8B₩3.5B₩3.2B

Terminal value ₩95B, worth ₩67B 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 ₩26,338 a share)Now 0.35×₩10,6810.41×₩13,3960.51×₩18,6980.71×
Price / earnings (last 12 months: ₩2,087 a share)Now 4.45×₩13,7716.60×₩16,7248.02×₩28,56013.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,394 a share)Now 2.11×₩29,0006.60×₩35,2198.02×₩60,14413.7×

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%₩34,414₩35,867₩37,652₩39,899₩42,817
6.8%₩32,403₩33,545₩34,919₩36,607₩38,732
7.3%₩30,711₩31,623₩32,702₩34,000₩35,594
7.8%₩29,269₩30,006₩30,866₩31,884₩33,109
8.3%₩28,025₩28,627₩29,322₩30,132₩31,091

Now (TTM)

Market cap
₩37B
Enterprise value
₩14B
P/E
4.5×
P/B
0.4×
P/S
0.6×
EV/EBITDA
—
Dividend yield
5.4%

Over time (at each year end)

20252024202320222021
Price₩10,560₩11,250₩12,300₩13,200₩20,300
Market cap₩43B₩45B₩50B₩53B₩82B
P/E12.2×8.4×9.3×6.5×10.2×
P/B0.4×0.4×0.5×0.6×0.9×
P/S0.7×0.7×0.8×0.9×1.5×
EV/EBITDA————9.8×
Dividend yield4.7%4.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Kdchem4.5×0.4×0.6×—5.4%
LG Chem—0.5×0.3×—0.9%
Hanwha Solutions—0.5×0.3×—0.0%
Hanwha6.1×0.4×0.1×—1.4%
SKC—1.8×1.7×—0.0%
KCC0.9×0.3×0.5×9.0×0.0%
Kumho Petro Chemical5.2×0.4×0.4×—1.6%
Similar companies (median)5.2×0.4×0.4×9.0×0.4%

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

Also known as: Kdchem / 케이디켐 / 221980 / KRX:221980

Source: KRX statistical information