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Hyundai Engineering & Construction Co (000720) Fair Value & Analysis

Industrials · KR · Market cap 11.1T KRW

HE Hyundai Engineering & Construction Co 000720 · KO
Price112,600 KRW
Fair Value63,993 KRW
Upside-43.2%
Quality45/100
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Expensive Growth
Thin margins · 1.4% net margin
Low debt · negative free cash flow
0.81% dividend yield
Trails peers (0/9)
Narrow moat 31/100
Evidence: Medium Range 52,777 KRW – 70,741 KRW Share as image

Fair value as of: Jul 17, 2026

From 15 valuation models · updated 21 days ago

Fair value updated Jul 17, 2026, revised from 64,227 KRW to 63,993 KRW (−0.4%) since Jun 25, 2026. Share price +2.8% over the past month.

Below-average quality, and screening another 43% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (70,741 KRW). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

188,700 KRW 23,551 KRW Fair Value 63,993 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range 23,551 KRW – 188,700 KRW · fair‑value band 52,777 KRW – 70,741 KRW · the 112,600 KRW price screens above the 63,993 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

Full chart & analysis →

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Analysis

Hyundai Engineering & Construction Co (000720) currently trades at 112,600 KRW, while our model-based Fair Value estimate is 63,993 KRW, implying the stock looks roughly 43.2% overvalued today. We read business quality at 45/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Hyundai Engineering & Construction Co generated revenue of 29.9T KRW at a net margin of 1.4%. Revenue declined 15.8% year over year. It earns a return on equity of 5.8%. Net debt stands at 3.0B KRW. Fundamentals as of Jul 17, 2026

Our scenario range runs from 52,777 KRW (bear case) to 70,741 KRW (bull case); at 112,600 KRW, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 43% below its 52-week high and 109% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -43%, 000720 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 57,019 KRW 57,431 KRW 54,457 KRW 76
ROIC Compounder 61,427 KRW 67,377 KRW 72,666 KRW 72
Growth-Adj P/E 43,315 KRW 61,879 KRW 80,442 KRW 68
All 15 models by family
DCF Models
Owner Earnings 78,267 KRW 111,028 KRW 164,989 KRW 31
Earnings-Based
Graham-Dodd 22,786 KRW 78,308 KRW 105,126 KRW 54
Lynch FV 18,062 KRW 25,802 KRW 33,543 KRW 50
PEG = 1.0 18,062 KRW 25,802 KRW 33,543 KRW 46
EPV 61,427 KRW 67,377 KRW 72,666 KRW 59
Multiples
P/E Multiple 50,264 KRW 67,019 KRW 83,774 KRW 63
P/S Multiple 42,725 KRW 56,966 KRW 71,208 KRW 58
P/B Multiple 42,725 KRW 56,966 KRW 71,208 KRW 55
EV/EBIT 107,529 KRW 134,135 KRW 160,741 KRW 53
EV/EBITDA 102,949 KRW 128,028 KRW 153,108 KRW 54
EV/Revenue 81,514 KRW 104,573 KRW 127,632 KRW 43
Asset-Based
NCAV (Graham) 37,110 KRW 49,727 KRW 74,219 KRW 50
Economic Profit
Residual Income 57,019 KRW 57,431 KRW 54,457 KRW 76
ROIC Compounder 61,427 KRW 67,377 KRW 72,666 KRW 72
Growth Earnings
Growth-Adj P/E 43,315 KRW 61,879 KRW 80,442 KRW 68

Widest divergence: DCF Models (111,028 KRW) versus Earnings-Based (25,802 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 29.9T KRW
Revenue growth (YoY) -15.8%
Net margin 1.4%
Return on equity 5.8%
Free cash flow −865B KRW FY2025
Operating margin 3.1%
More key figures
Dividend yield 0.6%
EPS growth (YoY) +44.1%
Net debt 3.0B KRW FY2019

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 45 · Market factors (momentum, volatility) 42

Profitability 33
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 16
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 67
Distance to the 52-week high (market factor)
Net Issuance 75
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hyundai Engineering & Construction Co.,Ltd. engages in the civil engineering and construction business in Middle Asia, Asia, Africa, and internationally. It operates through Building/Housing, Civil Engineering, Plant/Power, and Others segments.

Full company description

Hyundai Engineering & Construction Co.,Ltd. engages in the civil engineering and construction business in Middle Asia, Asia, Africa, and internationally. It operates through Building/Housing, Civil Engineering, Plant/Power, and Others segments. The company constructs roads and bridges, tunnels and railways, and maritime and port, apartment, luxury homes, and large complex as well as develops industrial facilities, mixed-use development and hotel, hospitals and offices, and special buildings. It is also involved in energy infrastructure construction, including large nuclear power plants, oil and gas, oil refining and petrochemicals, industrial plants, transmission lines and substations, renewable energy, and nuclear decommissioning. In addition, the company engages in steel structure manufacturing and installation; agricultural management and livestock industry; management of resort condominium; real estate development and supply; equipment maintenance; electricity production; construction of commercial building; business facility management service; and renting heavy equipment. The company was founded in 1947 and is headquartered in Seoul, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hyundai Engineering & Construction Co reported revenue of 31.1T KRW in FY2025 versus 18.1T KRW in FY2021, a compound +14.5%/yr. Reported net income was 373B KRW in FY2025, compounding −2.2%/yr from FY2021.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
31.1T KRW
Latest YoY
−4.9%
Avg. growth/yr (3Y)
+13.5%
Avg. growth/yr (5Y)
+12.9%
Avg. growth/yr (25Y)
+6.5%
Revenue +14.5%/yr
FY21 18.1T KRW
FY22 21.2T KRW
FY23 29.7T KRW
FY24 32.7T KRW
FY25 31.1T KRW
Net income −2.2%/yr
FY21 408B KRW
FY22 409B KRW
FY23 536B KRW
FY24 −169B KRW
FY25 373B KRW

000720 screens 43% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Hyundai Engineering & Construction Co Fair Value". https://www.fairvalue-calculator.com/stock/000720

Peer Group

Engineering & Construction · 831 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside −43% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -16% · Bottom 25%
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.21× · Higher than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 0 · sector 17
PAST 23 · sector 26
HEALTH 90 · sector 94
DIVIDEND 16 · sector 33

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹102.36 ₹48.22 -53%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%
GS Engineering & Construction Corporation 006360 34,400 KRW 23,135 KRW -33%

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Frequently asked questions

Is Hyundai Engineering & Construction Co (000720) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of 63,993 KRW versus a price of 112,600 KRW, about −43% (overvalued).
What is the fair value of 000720?
Our model-based fair value for Hyundai Engineering & Construction Co is 63,993 KRW (as of Jul 17, 2026), built from audited fundamentals. The current price is 112,600 KRW.
What is the quality score of 000720?
Hyundai Engineering & Construction Co has a Quality Score of 45/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Hyundai Engineering & Construction Co (000720)?
Hyundai Engineering & Construction Co reported trailing-twelve-month revenue of about 29.9T KRW (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 000720?
The net profit margin of Hyundai Engineering & Construction Co is about 1.4%, meaning it keeps roughly 1.4% of revenue as net income. Based on the latest reported figures.
Does Hyundai Engineering & Construction Co pay a dividend?
Hyundai Engineering & Construction Co currently shows a dividend yield of about 0.61% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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