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Serim B&G

340440 · KOSDAQ · ₩340440 · 세림B&G

₩2,530▼ ₩115 (4.35%)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

₩7,080

vs the current price (₩2,530)

Enterprise value
₩22B
Equity value
₩40B
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 180% 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 ₩2,530, the model needs an operating margin of 0.4% every year (it uses 4.5%).
  • 57% 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 5.8× against a typical 18.0× 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
₩4,589
+81.4%
Base
₩7,080
+179.8%
Bull
₩11,624
+359.5%

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 (4.5%).

Revenue growth

  • -3%

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

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

  • 0%

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

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

Business

  • 4.5%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 2.3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 3.4%

    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).

  • 18.5%

    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 -1.2, 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)
₩50B
Net debt (borrowings and leases − cash and deposits)
−₩18B
+ Stakes and investments
₩18M
Associates, long-term financial assets and deposits (book value)
Shares
5,675,672
Share price
₩2,530
Market cap
₩14B

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₩58B₩55B₩48B₩48B₩47B₩47B₩48B₩49B
Growth10.9%−4.9%−13.4%−3.0%−1.5%0.0%1.5%3.0%
EBIT₩4.3B₩3.1B₩914M₩2.2B₩2.1B₩2.1B₩2.2B₩2.2B
EBIT margin7.4%5.6%1.9%4.5%4.5%4.5%4.5%4.5%
After-tax EBIT₩3.1B₩2.2B₩662M₩1.6B₩1.5B₩1.5B₩1.6B₩1.6B
+ Depreciation₩1.2B₩1.2B₩1.3B₩1.1B₩1.1B₩1.1B₩1.1B₩1.1B
− Capital spending₩1B₩2.8B₩1.6B₩1.6B₩1.6B₩1.6B₩1.6B₩1.7B
− Working capital−₩1.7B−₩2.7B−₩11B−₩275M−₩133M₩0₩131M₩266M
Free cash flow₩5B₩3.4B₩12B₩1.3B₩1.2B₩1B₩907M₩803M
Discount factor———0.9320.8680.8090.7540.703
Present value———₩1.2B₩1B₩828M₩684M₩564M

Terminal value ₩25B, worth ₩18B 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 ₩6,583 a share)Now 0.38×₩6,3590.97×₩9,3021.41×₩17,8532.71×
Price / earnings (last 12 months: ₩437 a share)Now 5.79×₩4,3269.91×₩7,87718.0×₩13,54831.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩205 a share)Now 12.3×₩2,0349.91×₩3,70318.0×₩6,36931.0×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2022, 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%₩7,443₩7,698₩8,011₩8,405₩8,916
6.8%₩7,060₩7,258₩7,497₩7,789₩8,157
7.3%₩6,739₩6,895₩7,080₩7,302₩7,574
7.8%₩6,465₩6,590₩6,735₩6,907₩7,113
8.3%₩6,230₩6,330₩6,446₩6,580₩6,739

Now (TTM)

Market cap
₩14B
Enterprise value
−₩4.1B
P/E
5.8×
P/B
0.4×
P/S
0.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,295₩5,675₩9,420₩10,450₩14,725
Market cap₩41B₩32B₩53B₩59B₩84B
P/E22.2×13.9×14.0×27.0×—
P/B1.2×0.9×1.6×2.0×3.2×
P/S0.9×0.6×0.9×1.1×1.8×
EV/EBITDA11.6×6.9×9.8×17.6×27.5×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Serim B&G5.8×0.4×0.3×—0.0%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea19.5×2.5×2.1×—0.7%
Dongwon Systems9.7×0.7×0.4×5.7×2.8%
Nexen Tire3.7×0.3×0.2×—3.4%
PI Advanced Materials12.0×1.2×1.6×4.8×2.4%
Similar companies (median)7.7×0.6×0.4×5.3×2.6%

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

Also known as: Serim B&G / 세림B&G / 340440 / KRX:340440

Source: KRX statistical information