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KBG

318000 · KOSDAQ · ₩318000 · KBG

₩2,460▲ ₩30 (1.23%)End-of-day · Oct 28, 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

₩6,137

vs the current price (₩2,460)

Enterprise value
₩37B
Equity value
₩54B
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 149% 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 ₩2,460, the model needs an operating margin of 4.3% every year (it uses 14.8%).
  • Margins ranged from 9.7% to 21.7% 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.
  • 49% 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 13.5× against a typical 14.1× 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
₩4,615
+87.6%
Base
₩6,137
+149.5%
Bull
₩8,723
+254.6%

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 (14.8%).

Revenue growth

  • -0.6%

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

    Default: the last 3 years' revenue growth (-0.6% 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 (-0.6% a year, annual reports), fading to 3% by year 5.

  • 1.2%

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

    Default: the last 3 years' revenue growth (-0.6% a year, annual reports), fading to 3% by year 5.

  • 2.1%

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

    Default: the last 3 years' revenue growth (-0.6% 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 (-0.6% a year, annual reports), fading to 3% by year 5.

Business

  • 14.8%

    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.

  • 9%

    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).

  • 11.2%

    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).

  • 40%

    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.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 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 0.27, 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.

  • 5.61%

    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)
₩23B
Net debt (borrowings and leases − cash and deposits)
−₩15B
+ Stakes and investments
₩1.8B
Associates, long-term financial assets and deposits (book value)
Shares
8,740,223
Share price
₩2,460
Market cap
₩22B

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₩22B₩25B₩24B₩23B₩23B₩23B₩24B₩25B
Growth−11.3%15.4%−4.0%−0.6%0.3%1.2%2.1%3.0%
EBIT₩4.3B₩3.2B₩2.3B₩3.4B₩3.4B₩3.5B₩3.5B₩3.7B
EBIT margin20.0%12.7%9.7%14.8%14.8%14.8%14.8%14.8%
After-tax EBIT₩3.1B₩2.3B₩1.7B₩2.5B₩2.5B₩2.5B₩2.6B₩2.6B
+ Depreciation———₩2.1B₩2.1B₩2.1B₩2.2B₩2.2B
− Capital spending₩2.4B₩5.1B₩462M₩2.6B₩2.6B₩2.6B₩2.7B₩2.8B
− Working capital−₩13B₩5.2B−₩2.7B−₩56M₩28M₩111M₩197M₩288M
Free cash flow———₩2B₩2B₩1.9B₩1.8B₩1.8B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩1.9B₩1.7B₩1.5B₩1.4B₩1.3B

Terminal value ₩42B, worth ₩29B today: 79% 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 ₩5,375 a share)Now 0.46×₩4,2190.79×₩7,8321.46×₩13,1652.45×
Price / earnings (last 12 months: ₩182 a share)Now 13.5×₩1,6138.85×₩2,56714.1×₩6,40235.1×

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%
6.4%₩6,442₩6,747₩7,121₩7,590₩8,195
6.9%₩6,044₩6,287₩6,579₩6,936₩7,383
7.4%₩5,709₩5,905₩6,137₩6,415₩6,756
7.9%₩5,422₩5,583₩5,770₩5,991₩6,256
8.4%₩5,175₩5,307₩5,461₩5,639₩5,850

Now (TTM)

Market cap
₩22B
Enterprise value
₩6.7B
P/E
13.5×
P/B
0.5×
P/S
0.9×
EV/EBITDA
—
Dividend yield
2.4%

Over time (at each year end)

20252024202320222021
Price₩4,400₩4,680₩8,150₩5,720₩8,630
Market cap₩38B₩41B₩71B₩50B₩75B
P/E14.8×10.9×15.5×15.4×18.8×
P/B0.8×0.9×1.7×1.4×2.4×
P/S1.6×1.6×3.3×2.1×2.8×
EV/EBITDA—————
Dividend yield1.4%1.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
KBG13.5×0.5×0.9×—2.4%
LG Chem—0.5×0.3×—0.8%
Hanwha Solutions—0.6×0.4×—0.0%
Hanwha6.3×0.4×0.1×—1.4%
SKC—2.1×2.0×—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: KBG / 318000 / KRX:318000

Source: KRX statistical information