KOSPI · 298020 · Chemicals · ₩298020

Hyosung TNC효성티앤씨

298020 · KOSPI · ₩298020 · 효성티앤씨

₩247,500▼ ₩3,500 (1.39%)End-of-day · Oct 26, 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

₩484,359

vs the current price (₩247,500)

Enterprise value: ₩4.8T
Equity value: ₩2.1T
WACC: 5.1%

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 96% 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 ₩247,500, the model needs an operating margin of 2.9% every year (it uses 3.5%).
Or revenue growth −5.7 points a year higher than assumed in each of the 5 years.
Margins ranged from 1.4% to 16.6% 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.
Today's P/E is 9.5× against a typical 10.4× 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: ₩484,359; +95.7%
Bull: ₩2,645,004; +968.7%

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 (3.5%).

Revenue growth

Revenue growth, year 1-4.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-2.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% 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 (-4.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.5%
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 & amortisation3.4%
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).
Capital spending4.3%
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).
Working capital7.9%
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 rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
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 0.34, 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)5.53%
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): ₩8.4T
Net debt (borrowings and leases − cash and deposits): ₩2.3T
+ Stakes and investments: ₩3.1B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩451B
Shares: 4,327,682
Share price: ₩247,500
Market cap: ₩1.1T

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	₩7.5T	₩7.8T	₩7.7T	₩8T	₩7.7T	₩7.7T	₩7.8T	₩8T
Growth	−15.3%	3.3%	−1.0%	−4.7%	−2.8%	−0.8%	1.1%	3.0%
EBIT	₩213B	₩271B	₩252B	₩279B	₩271B	₩269B	₩272B	₩280B
EBIT margin	2.8%	3.5%	3.3%	3.5%	3.5%	3.5%	3.5%	3.5%
After-tax EBIT	₩155B	₩196B	₩182B	₩202B	₩197B	₩195B	₩197B	₩203B
+ Depreciation	—	—	—	₩271B	₩263B	₩261B	₩264B	₩272B
− Capital spending	₩263B	₩268B	₩459B	₩343B	₩333B	₩330B	₩334B	₩344B
− Working capital	−₩295B	−₩232B	₩32B	−₩31B	−₩18B	−₩4.9B	₩6.7B	₩18B
Free cash flow	—	—	—	₩162B	₩144B	₩131B	₩121B	₩113B
Discount factor	—	—	—	0.952	0.906	0.862	0.820	0.781
Present value	—	—	—	₩154B	₩131B	₩113B	₩99B	₩88B

Terminal value ₩5.4T, worth ₩4.2T today: 88% 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 ₩404,315 a share)Now 0.61×	₩271,0340.67×	₩423,7771.05×	₩579,1991.43×
Price / earnings (last 12 months: ₩26,006 a share)Now 9.52×	₩60,4102.32×	₩269,89910.4×	₩495,34219.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩88,257 a share)Now 2.80×	₩205,0152.32×	₩915,97210.4×	₩1,681,06919.0×

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%
4.1%	₩564,997	₩752,180	₩1,029,258	₩1,481,813	₩2,354,561
4.6%	₩394,407	₩524,065	₩703,836	₩969,938	₩1,404,559
5.1%	₩265,802	₩359,879	₩484,359	₩656,948	₩912,414
5.6%	₩165,414	₩236,090	₩326,378	₩445,840	₩611,469
6.1%	₩84,899	₩139,451	₩207,255	₩293,871	₩408,471

Now (TTM)

Market cap: ₩1.1T
Enterprise value: ₩3.3T
P/E: 9.5×
P/B: 0.6×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 4.1%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩222,500	₩239,000	₩365,000	₩350,000	₩521,000
Market cap	₩963B	₩1T	₩1.6T	₩1.5T	₩2.3T
P/E	89.0×	7.7×	16.9×	130.7×	2.9×
P/B	0.6×	0.7×	1.2×	1.2×	1.6×
P/S	0.1×	0.1×	0.2×	0.2×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	4.5%	4.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Hyosung TNC	9.5×	0.6×	0.1×	—	4.1%
LG Chem	—	0.4×	0.3×	—	0.9%
Hanwha Solutions	—	0.6×	0.4×	—	0.0%
Hanwha	6.1×	0.4×	0.1×	—	1.2%
SKC	—	2.0×	1.9×	—	0.0%
KCC	0.9×	0.3×	0.5×	8.6×	0.0%
Kumho Petro Chemical	5.1×	0.4×	0.4×	—	1.7%
Similar companies (median)	5.1×	0.4×	0.4×	8.6×	0.4%

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

Also known as: Hyosung TNC / 효성티앤씨 / 298020 / KRX:298020

Source: KRX statistical information