KOSDAQ · 425040 · Chemicals · ₩425040

Temc티이엠씨

425040 · KOSDAQ · ₩425040 · 티이엠씨

₩13,580▲ ₩440 (3.35%)End-of-day · Oct 27, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩5,262

vs the current price (₩13,580)

Enterprise value: ₩204B
Equity value: ₩115B
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 61% 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 ₩13,580, the model needs an operating margin of 14.4% every year (it uses 8.6%).
Or revenue growth +20.1 points a year higher than assumed in each of the 5 years.
Margins ranged from 6.4% to 15.1% over the last 4 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.
32% 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 16.3× against a typical 14.0× 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: ₩1,101; −91.9%
Base: ₩5,262; −61.3%
Bull: ₩12,710; −6.4%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (8.6%).

Revenue growth

Revenue growth, year 1-7.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-2.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.6%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 4 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation9.4%
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).
Capital spending11.8%
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).
Working capital30.2%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
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.
Beta0.67
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 0.51, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩276B
Net debt (borrowings and leases − cash and deposits): ₩48B
+ Stakes and investments: ₩52B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩93B
Shares: 21,922,898
Share price: ₩13,580
Market cap: ₩298B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩201B	₩310B	₩280B	₩256B	₩244B	₩238B	₩239B	₩246B
Growth	−42.9%	54.5%	−9.8%	−7.4%	−4.8%	−2.2%	0.4%	3.0%
EBIT	₩21B	₩20B	₩25B	₩22B	₩21B	₩20B	₩21B	₩21B
EBIT margin	10.5%	6.4%	8.9%	8.6%	8.6%	8.6%	8.6%	8.6%
After-tax EBIT	₩15B	₩14B	₩18B	₩16B	₩15B	₩15B	₩15B	₩15B
+ Depreciation	—	—	—	₩24B	₩23B	₩22B	₩22B	₩23B
− Capital spending	₩32B	₩34B	₩23B	₩30B	₩29B	₩28B	₩28B	₩29B
− Working capital	₩9.2B	−₩2.7B	₩18B	−₩6.2B	−₩3.7B	−₩1.6B	₩288M	₩2.2B
Free cash flow	—	—	—	₩16B	₩13B	₩11B	₩8.9B	₩7.3B
Discount factor	—	—	—	0.932	0.869	0.810	0.755	0.704
Present value	—	—	—	₩15B	₩11B	₩8.7B	₩6.7B	₩5.1B

Terminal value ₩223B, worth ₩157B today: 77% 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:

	Low	Typical	High
Price / book (book value ₩9,734 a share)Now 1.40×	₩8,1600.84×	₩13,2021.36×	₩32,1343.30×
Price / earnings (last 12 months: ₩835 a share)Now 16.3×	₩8,69710.4×	₩11,65314.0×	₩16,40119.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩982 a share)Now 13.8×	₩10,22410.4×	₩13,69914.0×	₩19,28119.6×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2023, 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%	₩6,062	₩6,669	₩7,414	₩8,355	₩9,578
6.8%	₩5,182	₩5,655	₩6,225	₩6,925	₩7,807
7.3%	₩4,444	₩4,818	₩5,262	₩5,795	₩6,451
7.8%	₩3,815	₩4,115	₩4,466	₩4,880	₩5,379
8.3%	₩3,273	₩3,517	₩3,797	₩4,123	₩4,510

Now (TTM)

Market cap: ₩298B
Enterprise value: ₩344B
P/E: 16.3×
P/B: 1.4×
P/S: 1.1×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023
Price	₩7,650	₩7,830	₩25,799
Market cap	₩168B	₩172B	₩566B
P/E	10.5×	13.3×	24.9×
P/B	0.9×	0.9×	3.2×
P/S	0.6×	0.6×	2.8×
EV/EBITDA	—	—	—
Dividend yield	0.0%	0.0%	—

Loading data for this company — check back soon

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Temc	16.3×	1.4×	1.1×	—	0.0%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.6×	0.4×	—	0.0%
Hanwha	6.2×	0.4×	0.1×	—	1.4%
SKC	—	2.1×	2.0×	—	0.0%
KCC	0.9×	0.3×	0.5×	8.7×	0.0%
Kumho Petro Chemical	5.2×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.2×	0.4×	0.4×	8.7×	0.4%

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

Also known as: Temc / 티이엠씨 / 425040 / KRX:425040

Source: KRX statistical information