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Kyochon Food&Beverage

339770 · KOSPI · ₩339770 · 교촌에프앤비

₩3,670▼ ₩50 (1.34%)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

₩7,252

vs the current price (₩3,670)

Enterprise value
₩309B
Equity value
₩362B
WACC
7.3%

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 98% 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 ₩3,670, the model needs an operating margin of 2.7% every year (it uses 5.2%).
  • Or revenue growth −16.2 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 12.2× against a typical 15.4× 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
₩3,428
−6.6%
Base
₩7,252
+97.6%
Bull
₩13,951
+280.1%

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 (5.2%).

Revenue growth

  • -0%

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

    Default: the last 3 years' revenue growth (0% 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 (0% a year, annual reports), fading to 3% by year 5.

  • 1.5%

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

    Default: the last 3 years' revenue growth (0% a year, annual reports), fading to 3% by year 5.

  • 2.2%

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

    Default: the last 3 years' revenue growth (0% 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% a year, annual reports), fading to 3% by year 5.

Business

  • 5.2%

    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.

  • 5.1%

    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).

  • 6.4%

    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).

  • -4.2%

    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 0.12, 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)
₩522B
Net debt (borrowings and leases − cash and deposits)
−₩53B
+ Stakes and investments
₩751M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩15M
Shares
49,965,080
Share price
₩3,670
Market cap
₩183B

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₩445B₩481B₩517B₩522B₩526B₩534B₩546B₩562B
Growth−14.0%8.1%7.6%0.0%0.7%1.5%2.2%3.0%
EBIT₩25B₩15B₩35B₩27B₩27B₩28B₩28B₩29B
EBIT margin5.6%3.2%6.8%5.2%5.2%5.2%5.2%5.2%
After-tax EBIT₩18B₩11B₩25B₩20B₩20B₩20B₩21B₩21B
+ Depreciation———₩27B₩27B₩27B₩28B₩29B
− Capital spending₩33B₩28B₩32B₩33B₩34B₩34B₩35B₩36B
− Working capital−₩12B−₩16B−₩5.9B₩0−₩154M−₩331M−₩493M−₩687M
Free cash flow———₩13B₩13B₩14B₩14B₩15B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩12B₩11B₩11B₩11B₩10B

Terminal value ₩361B, worth ₩254B today: 82% 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 ₩3,676 a share)Now 1.00×₩3,7721.03×₩4,6421.26×₩7,3922.01×
Price / earnings (last 12 months: ₩300 a share)Now 12.2×₩3,58812.0×₩4,60615.4×₩12,68142.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩420 a share)Now 8.73×₩5,03212.0×₩6,46015.4×₩17,78742.3×

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%
6.3%₩7,408₩8,014₩8,762₩9,706₩10,937
6.8%₩6,834₩7,330₩7,928₩8,666₩9,599
7.3%₩6,352₩6,763₩7,252₩7,843₩8,572
7.8%₩5,941₩6,287₩6,694₩7,176₩7,760
8.3%₩5,587₩5,882₩6,224₩6,625₩7,102

Now (TTM)

Market cap
₩183B
Enterprise value
₩122B
P/E
12.2×
P/B
1.0×
P/S
0.4×
EV/EBITDA
—
Dividend yield
8.2%

Over time (at each year end)

20252024202320222021
Price₩4,340₩5,460₩3,718₩4,604₩8,307
Market cap₩217B₩273B₩186B₩230B₩415B
P/E12.4×125.6×13.0×43.1×13.9×
P/B1.1×1.5×1.0×1.3×2.3×
P/S0.4×0.6×0.4×0.4×0.8×
EV/EBITDA—————
Dividend yield6.9%3.7%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Kyochon Food&Beverage12.2×1.0×0.4×—8.2%
Samsung C&T18.1×0.5×1.2×—0.9%
POSCO International10.3×1.2×0.3×—3.8%
ISC42.6×5.7×11.9×—0.5%
Youngone5.2×0.7×0.7×—3.0%
Dong SUH Companies19.6×1.7×5.3×—4.0%
SK Gas7.4×0.6×0.3×—3.5%
Similar companies (median)14.2×1.0×0.9×—3.3%

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

Also known as: Kyochon Food&Beverage / 교촌에프앤비 / 339770 / KRX:339770

Source: KRX statistical information