KOSPI · 226320 · Cosmetics · ₩226320

IT'S Hanbul잇츠한불

226320 · KOSPI · ₩226320 · 잇츠한불

₩10,530▼ ₩140 (1.31%)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

₩6,828

vs the current price (₩10,530)

Enterprise value: ₩181B
Equity value: ₩150B
WACC: 7.4%

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 35% 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 ₩10,530, the model needs an operating margin of 11.7% every year (it uses 8.6%).
Or revenue growth +12.6 points a year higher than assumed in each of the 5 years.
Margins ranged from 0.5% to 12.6% 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.
48% 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 6.9× against a typical 20.5× 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: ₩3,215; −69.5%
Base: ₩6,828; −35.2%
Bull: ₩13,185; +25.2%

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 (8.6%).

Revenue growth

Revenue growth, year 15.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 24.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 34.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% 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 (5.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.6%
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.
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 & amortisation1.8%
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 spending2.2%
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).
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 0.15, 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): ₩172B
Net debt (borrowings and leases − cash and deposits): −₩58B
+ Stakes and investments: ₩28B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩117B
Shares: 21,929,315
Share price: ₩10,530
Market cap: ₩231B

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	₩139B	₩142B	₩153B	₩182B	₩191B	₩199B	₩206B	₩212B
Growth	6.5%	2.3%	7.7%	5.5%	4.9%	4.2%	3.6%	3.0%
EBIT	₩8.1B	₩18B	₩19B	₩16B	₩16B	₩17B	₩18B	₩18B
EBIT margin	5.8%	12.6%	12.5%	8.6%	8.6%	8.6%	8.6%	8.6%
After-tax EBIT	₩5.8B	₩13B	₩14B	₩11B	₩12B	₩12B	₩13B	₩13B
+ Depreciation	—	—	—	₩3.3B	₩3.4B	₩3.6B	₩3.7B	₩3.8B
− Capital spending	₩4.3B	₩3.6B	₩1.8B	₩4B	₩4.2B	₩4.4B	₩4.5B	₩4.7B
− Working capital	−₩274B	₩5B	₩304B	₩3.8B	₩3.6B	₩3.2B	₩2.9B	₩2.5B
Free cash flow	—	—	—	₩6.8B	₩7.6B	₩8.4B	₩9.1B	₩9.9B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	₩6.3B	₩6.6B	₩6.8B	₩6.9B	₩6.9B

Terminal value ₩211B, worth ₩148B today: 82% 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 ₩18,367 a share)Now 0.57×	₩11,1800.61×	₩13,7350.75×	₩19,3311.05×
Price / earnings (last 12 months: ₩1,519 a share)Now 6.93×	₩12,7418.39×	₩31,21120.5×	₩56,45537.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,756 a share)Now 6.00×	₩14,7288.39×	₩36,08020.5×	₩65,26437.2×

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%
6.4%	₩7,658	₩8,176	₩8,807	₩9,599	₩10,620
6.9%	₩6,837	₩7,237	₩7,716	₩8,302	₩9,034
7.4%	₩6,145	₩6,459	₩6,828	₩7,271	₩7,812
7.9%	₩5,554	₩5,803	₩6,092	₩6,433	₩6,840
8.4%	₩5,045	₩5,244	₩5,472	₩5,737	₩6,049

Now (TTM)

Market cap: ₩231B
Enterprise value: ₩173B
P/E: 6.9×
P/B: 0.6×
P/S: 1.3×
EV/EBITDA: —
Dividend yield: 2.6%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩11,120	₩10,670	₩12,250	₩17,850	₩17,700
Market cap	₩244B	₩234B	₩269B	₩391B	₩388B
P/E	14.6×	14.2×	79.1×	—	—
P/B	0.6×	0.6×	0.7×	1.1×	1.0×
P/S	1.6×	1.6×	1.9×	3.0×	2.8×
EV/EBITDA	—	—	—	—	—
Dividend yield	2.5%	2.3%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
IT'S Hanbul	6.9×	0.6×	1.3×	—	2.6%
APR	25.0×	16.7×	4.7×	24.7×	1.8%
Amorepacific	25.5×	1.3×	1.6×	—	1.0%
LG H&H	—	0.7×	0.6×	6.9×	0.8%
Cosmax	16.0×	4.6×	1.1×	13.7×	1.3%
Kolmar Korea	15.0×	2.8×	0.9×	—	0.7%
d'Alba Global	17.0×	7.3×	2.9×	—	1.8%
Similar companies (median)	17.0×	3.7×	1.4×	13.7×	1.1%

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

Also known as: IT'S Hanbul / 잇츠한불 / 226320 / KRX:226320

Source: KRX statistical information