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HS Hyosung Advanced Materials

298050 · KOSPI · ₩298050 · HS효성첨단소재

₩139,400▼ ₩800 (0.57%)End-of-day · Oct 30, 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

₩235,328

vs the current price (₩139,400)

Enterprise value
₩3.7T
Equity value
₩1.1T
WACC
4.6%

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 ₩139,400, the model needs an operating margin of 5.8% every year (it uses 6.3%).
  • Or revenue growth −3.1 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 16.8× against a typical 21.7× 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
₩235,328
+68.8%
Bull
₩1,611,877
+1,056.3%

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 (6.3%).

Revenue growth

  • -5.1%

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

    Default: the last 3 years' revenue growth (-5.1% a year, annual reports), fading to 3% by year 5.

  • -3.1%

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

    Default: the last 3 years' revenue growth (-5.1% 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 (-5.1% a year, annual reports), fading to 3% by year 5.

  • 1%

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

    Default: the last 3 years' revenue growth (-5.1% 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 (-5.1% a year, annual reports), fading to 3% by year 5.

Business

  • 6.3%

    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.

  • 7.6%

    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).

  • 9.6%

    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).

  • 20.9%

    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

  • 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 0.35, 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)
₩3.4T
Net debt (borrowings and leases − cash and deposits)
₩2.6T
− Minority interests
₩74B
Shares
4,479,948
Share price
₩139,400
Market cap
₩625B

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₩3.2T₩3.3T₩3.3T₩3.2T₩3.1T₩3.1T₩3.1T₩3.2T
Growth−16.6%3.4%−0.9%−5.1%−3.1%−1.1%1.0%3.0%
EBIT₩172B₩220B₩157B₩201B₩195B₩193B₩195B₩201B
EBIT margin5.4%6.6%4.8%6.3%6.3%6.3%6.3%6.3%
After-tax EBIT₩125B₩159B₩114B₩146B₩141B₩140B₩141B₩146B
+ Depreciation———₩243B₩235B₩233B₩235B₩242B
− Capital spending₩354B₩357B₩225B₩307B₩297B₩294B₩297B₩306B
− Working capital₩957B₩45B₩43B−₩36B−₩21B−₩7.1B₩6.4B₩19B
Free cash flow———₩118B₩100B₩86B₩73B₩62B
Discount factor———0.9560.9130.8730.8340.797
Present value———₩113B₩92B₩75B₩61B₩50B

Terminal value ₩4.2T, worth ₩3.3T 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 ₩201,086 a share)Now 0.69×₩171,1590.85×₩417,1502.07×₩712,9283.55×
Price / earnings (last 12 months: ₩8,283 a share)Now 16.8×₩67,1128.10×₩179,80021.7×₩348,35142.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩39,986 a share)Now 3.49×₩323,9858.10×₩867,99121.7×₩1,681,67642.1×

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%
3.6%₩314,038₩481,172₩749,943₩1,254,283₩2,547,768
4.1%₩165,967₩274,049₩432,391₩687,014₩1,164,788
4.6%₩58,712₩133,045₩235,328₩385,168₩626,106
5.1%—₩30,898₩101,160₩197,835₩339,450
5.6%——₩3,954₩70,279₩161,529

Now (TTM)

Market cap
₩625B
Enterprise value
₩3.2T
P/E
16.8×
P/B
0.7×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩181,600₩174,600₩399,500₩333,500₩596,000
Market cap₩814B₩782B₩1.8T₩1.5T₩2.7T
P/E—15.7×50.3×11.9×10.7×
P/B1.0×0.7×2.6×2.1×4.4×
P/S0.2×0.2×0.6×0.4×0.7×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
HS Hyosung Advanced Materials16.8×0.7×0.2×—0.0%
LG Chem—0.5×0.3×—0.9%
Hanwha Solutions—0.5×0.3×—0.0%
Hanwha5.9×0.4×0.1×—1.5%
SKC—1.8×1.7×—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: HS Hyosung Advanced Materials / HS효성첨단소재 / 298050 / KRX:298050

Source: KRX statistical information