HS Hwasung Valuation

Q: What is the Fair Price of A002460 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

A002460 (₩9510) is trading below our estimate of [[fair value]] (₩292794.78)

Is A002460 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of A002460 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A002460 (₩9510) is trading below our estimate of fair value (₩292794.78)

Significantly Below Fair Value: A002460 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A002460?

Key metric: As A002460 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for A002460. This is calculated by dividing A002460's market cap by their current revenue.
What is A002460's PS Ratio?
PS Ratio	0.1x
Sales	₩686.12b
Market Cap	₩86.91b

A002460 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	7.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does A002460's PS Ratio compare to its peers?

The above table shows the PS ratio for A002460 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.1x
A005960 Dongbu	0.05x	n/a	₩95.8b
A001260 Namkwang Engineering & Construction	0.2x	n/a	₩82.9b
A013360 Ilsung Construction	0.2x	n/a	₩78.9b
A011560 Sebo Manufacturing Engineering & Construction	0.1x	n/a	₩108.9b
A002460 HS Hwasung	0.1x	n/a	₩86.9b

Price-To-Sales vs Peers: A002460 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.1x).

Price to Sales Ratio vs Industry

How does A002460's PS Ratio compare vs other companies in the KR Construction Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap
A000720 Hyundai Engineering & ConstructionLtd	0.09x	-4.2%	US$2.28b
A003070 Kolon Global	0.07x	4.5%	US$143.74m
A013580 Kyeryong Construction Industrial	0.04x	n/a	US$81.80m
A002990 KUMHO Engineering & Construction	0.05x	3.7%	US$79.38m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: A002460 is good value based on its Price-To-Sales Ratio (0.1x) compared to the KR Construction industry average (0.2x).

Price to Sales Ratio vs Fair Ratio

What is A002460's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A002460 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate A002460's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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