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SJ Group

306040 · KOSDAQ · ₩306040 · 에스제이그룹

₩2,070▲ ₩30 (1.47%)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

₩8,147

vs the current price (₩2,070)

Enterprise value
₩85B
Equity value
₩76B
WACC
5.3%

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 294% 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 ₩2,070, the model needs an operating margin of 1.8% every year (it uses 3.8%).
  • Margins ranged from −9.7% to 19.4% 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.

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
₩1,564
−24.4%
Base
₩8,147
+293.6%
Bull
₩23,443
+1,032.5%

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 (3.8%).

Revenue growth

  • -6.2%

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

    Default: the last 3 years' revenue growth (-6.2% a year, annual reports), fading to 3% by year 5.

  • -3.9%

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

    Default: the last 3 years' revenue growth (-6.2% a year, annual reports), fading to 3% by year 5.

  • -1.6%

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

    Default: the last 3 years' revenue growth (-6.2% a year, annual reports), fading to 3% by year 5.

  • 0.7%

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

    Default: the last 3 years' revenue growth (-6.2% 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 (-6.2% a year, annual reports), fading to 3% by year 5.

Business

  • 3.8%

    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.

  • 2%

    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).

  • 2.5%

    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).

  • 22.1%

    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 -0.04, 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)
₩150B
Net debt (borrowings and leases − cash and deposits)
₩29B
+ Stakes and investments
₩20B
Associates, long-term financial assets and deposits (book value)
Shares
9,287,044
Share price
₩2,070
Market cap
₩19B

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₩204B₩182B₩163B₩141B₩135B₩133B₩134B₩138B
Growth3.0%−10.8%−10.1%−6.2%−3.9%−1.6%0.7%3.0%
EBIT₩15B−₩3.2B−₩16B₩5.3B₩5.1B₩5.1B₩5.1B₩5.2B
EBIT margin7.6%−1.8%−9.7%3.8%3.8%3.8%3.8%3.8%
After-tax EBIT₩11B−₩2.3B−₩12B₩3.9B₩3.7B₩3.7B₩3.7B₩3.8B
+ Depreciation———₩2.8B₩2.7B₩2.7B₩2.7B₩2.8B
− Capital spending₩3.3B₩4.9B₩5B₩3.5B₩3.4B₩3.3B₩3.3B₩3.4B
− Working capital−₩28B−₩1.8B₩22B−₩2.1B−₩1.2B−₩478M₩206M₩888M
Free cash flow———₩5.2B₩4.3B₩3.5B₩2.8B₩2.2B
Discount factor———0.9500.9020.8560.8130.772
Present value———₩5B₩3.8B₩3B₩2.3B₩1.7B

Terminal value ₩90B, worth ₩69B today: 81% 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 ₩12,441 a share)Now 0.17×₩3,2510.26×₩7,2810.59×₩24,4721.97×
P/E on run-rate earnings (Q2 2026 × 4: ₩23 a share)Now 90.7×₩1014.40×₩1195.21×₩29112.8×

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%
4.3%₩9,289₩10,387₩11,955₩14,384₩18,662
4.8%₩7,965₩8,708₩9,712₩11,145₩13,365
5.3%₩6,948₩7,471₩8,147₩9,060₩10,363
5.8%₩6,143₩6,520₩6,992₩7,604₩8,429
6.3%₩5,490₩5,767₩6,106₩6,530₩7,079

Now (TTM)

Market cap
₩19B
Enterprise value
₩19B
P/E
—
P/B
0.2×
P/S
0.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩9,160₩4,930₩9,370₩16,400₩21,550
Market cap₩85B₩46B₩87B₩152B₩200B
P/E——6.6×5.2×8.6×
P/B0.7×0.4×0.6×1.2×1.9×
P/S0.5×0.3×0.4×0.8×1.3×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SJ Group—0.2×0.1×—0.0%
F&F4.5×1.1×1.2×—4.4%
LF5.6×0.4×0.3×4.6×3.2%
Chokwang Leather43.6×0.7×4.8×57.9×0.0%
Handsome7.2×0.3×0.3×—0.0%
JS4.2×0.6×0.2×—5.1%
Hansae9.3×0.4×0.2×—0.0%
Similar companies (median)6.4×0.5×0.3×31.2×1.6%

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

Also known as: SJ Group / 에스제이그룹 / 306040 / KRX:306040

Source: KRX statistical information