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Jeil Pharmaceutical

271980 · KOSPI · ₩271980 · 제일약품

₩8,830 ₩0 (0.00%)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

With these assumptions the model gives no positive value.

Enterprise value
−₩54B
Equity value
−₩139B
WACC
6.5%

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

  • To match today's price of ₩8,830, the model needs an operating margin of 3.3% every year (it uses −0.4%).
  • 71% 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 13.9× against a typical 41.0× 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
—
Base
—
Bull
₩2,751
−68.8%

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 (−0.4%).

Revenue growth

  • -7.7%

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

    Default: the last 3 years' revenue growth (-7.7% a year, annual reports), fading to 3% by year 5.

  • -5.1%

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

    Default: the last 3 years' revenue growth (-7.7% 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 (-7.7% a year, annual reports), fading to 3% by year 5.

  • 0.3%

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

    Default: the last 3 years' revenue growth (-7.7% 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 (-7.7% a year, annual reports), fading to 3% by year 5.

Business

  • -0.4%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

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

  • 1%

    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).

  • 1.3%

    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).

  • 10.6%

    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.

  • 4.08%

    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.

  • 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 0.19, 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.

  • 5.58%

    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)
₩543B
Net debt (borrowings and leases − cash and deposits)
₩49B
+ Stakes and investments
₩12B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩47B
Shares
14,704,872
Share price
₩8,830
Market cap
₩130B

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₩726B₩705B₩567B₩502B₩476B₩465B₩466B₩480B
Growth0.6%−3.0%−19.5%−7.7%−5.1%−2.4%0.3%3.0%
EBIT₩8.7B−₩19B₩21B−₩2B−₩1.9B−₩1.9B−₩1.9B−₩1.9B
EBIT margin1.2%−2.7%3.6%−0.4%−0.4%−0.4%−0.4%−0.4%
After-tax EBIT₩6.3B−₩14B₩15B−₩1.5B−₩1.4B−₩1.3B−₩1.4B−₩1.4B
+ Depreciation———₩5B₩4.8B₩4.6B₩4.7B₩4.8B
− Capital spending₩9.6B₩6.6B₩9.1B₩6.5B₩6.2B₩6B₩6.1B₩6.2B
− Working capital−₩6.6B₩37B₩42B−₩4.4B−₩2.7B−₩1.2B₩148M₩1.5B
Free cash flow———₩1.5B−₩97M−₩1.5B−₩2.9B−₩4.3B
Discount factor———0.9390.8820.8290.7780.731
Present value———₩1.4B−₩85M−₩1.3B−₩2.3B−₩3.2B

Terminal value −₩66B, worth −₩48B today: 90% 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 ₩13,996 a share)Now 0.63×₩13,3840.96×₩20,3341.45×₩31,3812.24×
Price / earnings (last 12 months: ₩634 a share)Now 13.9×₩5,3898.50×₩25,95341.0×₩43,79869.1×

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%
5.5%—————
6.0%—————
6.5%—————
7.0%—————
7.5%—————

Now (TTM)

Market cap
₩130B
Enterprise value
₩177B
P/E
13.9×
P/B
0.6×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩15,150₩11,400₩17,100₩21,000₩33,850
Market cap₩223B₩168B₩251B₩309B₩498B
P/E9.5×—50.2×——
P/B1.1×0.9×1.6×2.0×3.0×
P/S0.4×0.2×0.3×0.4×0.7×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Jeil Pharmaceutical13.9×0.6×0.2×—0.0%
Samsung Biologics31.9×7.6×13.9×—0.0%
Celltrion27.9×2.5×9.0×—0.0%
Alteogen79.4×28.6×60.3×—0.1%
SK biopharmaceuticals15.2×6.0×7.1×—0.0%
Yuhan23.2×2.3×2.4×30.2×0.8%
HLB—15.4×54.3×—0.0%
Similar companies (median)27.9×6.8×11.4×30.2×0.0%

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

Also known as: Jeil Pharmaceutical / 제일약품 / 271980 / KRX:271980

Source: KRX statistical information