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Hanwha Corporation (000880) Fair Value & Analysis

Industrials · KR · Market cap 8.1T KRW

HC Hanwha Corporation 000880 · KO
Price96,000 KRW
Fair Value71,165 KRW
Upside-25.9%
Quality30/100
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Healthy Growth
Thin margins · 0.6% net margin
High debt · generates free cash flow
1.19% dividend yield
Mixed vs. peers (5/12)
Narrow moat 30/100
Evidence: Medium Range 53,373 KRW – 88,956 KRW Share as image

Fair value as of: Jul 15, 2026

From 10 valuation models · updated 25 days ago

Fair value updated Jul 15, 2026, revised from 59,683 KRW to 71,165 KRW (+19.2%) since Jul 5, 2026. Share price −7.5% over the past month.

Below-average quality, and screening another 26% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (88,956 KRW). The favourable scenario is already priced in.
  • Weak quality (30/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

150,900 KRW 20,687 KRW Fair Value 71,165 KRW Mar 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range 20,687 KRW – 150,900 KRW · fair‑value band 53,373 KRW – 88,956 KRW · the 96,000 KRW price screens above the 71,165 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

Full chart & analysis →

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Analysis

Hanwha Corporation (000880) currently trades at 96,000 KRW, while our model-based Fair Value estimate is 71,165 KRW, implying the stock looks roughly 25.9% overvalued today. The Quality Score stands at 30/100 (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, Hanwha Corporation generated revenue of 79.6T KRW at a net margin of 0.6%. Revenue grew 28.9% year over year. It earns a return on equity of 5.2%. Net debt stands at 45.5T KRW. Fundamentals as of Jul 15, 2026

Our scenario range runs from 53,373 KRW (bear case) to 88,956 KRW (bull case); at 96,000 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 42% below its 52-week high and 31% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -26%, 000880 screens richer 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
Growth DCF 229,643 KRW 471,581 KRW 895,440 KRW 80
Residual Income 98,299 KRW 96,187 KRW 83,667 KRW 76
Rev-Margin DCF 289,075 KRW 582,102 KRW 946,833 KRW 74
All 10 models by family
DCF Models
5Y P/E Exit 46,166 KRW 104,437 KRW 165,447 KRW 38
10Y P/E Exit 103,872 KRW 175,336 KRW 264,127 KRW 35
Earnings-Based
Graham-Dodd 28,466 KRW 117,964 KRW 160,780 KRW 54
Lynch FV 29,772 KRW 42,531 KRW 55,291 KRW 50
Multiples
P/E Multiple 65,932 KRW 87,909 KRW 109,886 KRW 63
P/B Multiple 53,373 KRW 71,165 KRW 88,956 KRW 55
Asset-Based
NCAV (Graham) 66,534 KRW 89,155 KRW 133,067 KRW 50
Growth DCF
Growth DCF 229,643 KRW 471,581 KRW 895,440 KRW 80
Rev-Margin DCF 289,075 KRW 582,102 KRW 946,833 KRW 74
Economic Profit
Residual Income 98,299 KRW 96,187 KRW 83,667 KRW 76

Widest divergence: Growth DCF (471,581 KRW) versus Earnings-Based (42,531 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 79.6T KRW
Revenue growth (YoY) +28.9%
Net margin 0.6%
Return on equity 5.2%
Free cash flow 2.2T KRW FY2025
Operating margin 5.9%
More key figures
Dividend yield 0.9%
EPS growth (YoY) +78.1%
Net debt 45.5T KRW FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 30/100

Of which business quality 29 · Market factors (momentum, volatility) 21

Profitability 15
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 8
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 10
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 8
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

Hanwha Corporation engages in the manufacture and sale of explosives and industrial machinery, trading, and general construction businesses.

Full company description

Hanwha Corporation engages in the manufacture and sale of explosives and industrial machinery, trading, and general construction businesses. The company operates through Gunpowder Manufacturing; Wholesale and Retail; Chemical Manufacturing; Shipbuilding Industry; Construction Industry; Leisure/Service Industry; Solar Power Business; Financial Industry; And Other Sectors segments. It is involved in manufacturing and sales of explosives, such as defense products, industrial explosives, etc.; trade and wholesale/retail business; ship design, manufacturing and construction; construction industry, such as architecture, civil engineering, plant, environment, housing business, etc.; sports facility operation and tourism accommodation, IT outsourcing; manufacturing and sales of solar energy-related products and solar power generation; insurance business, deposit income business, securities brokerage business; and other manufacturing and sales business. The company also produces and sells military equipment, such as self-propelled guns, armored vehicles, precision-guided weapons, conventional ammunition, and radars; gas turbine engines and engine parts, aircraft machinery parts, etc.; and CCTVs, storage devices, monitors, etc. In addition, it engages in the trade, department stores, and wholesale and retail of petroleum/petrochemical, steel/non-ferrous, machinery, agricultural, livestock, fishery products, mineral resources, etc. Further, the company is involved in the production and maintenance of parts for aircraft, launch vehicles, and various engines; satellite systems, electro-optical cameras, satellite ground stations, etc.; and building ships and special vessels. Additionally, it engages golf course; hotel; and real estate industry. The company was formerly known as Korea Explosives Corp. and changed its name to Hanwha Corporation in March 1993. Hanwha Corporation was founded in 1952 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

Hanwha Corporation reported revenue of 74.8T KRW in FY2025 versus 52.8T KRW in FY2021, a compound +9.1%/yr. Reported net income was 372B KRW in FY2025, compounding −19.8%/yr from FY2021.

Growth Quality 71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
74.8T KRW
Latest YoY
+34.4%
Avg. growth/yr (3Y)
+13.7%
Avg. growth/yr (5Y)
+8.0%
Avg. growth/yr (25Y)
+12.2%
Revenue +9.1%/yr
FY21 52.8T KRW
FY22 50.9T KRW
FY23 53.1T KRW
FY24 55.6T KRW
FY25 74.8T KRW
Net income −19.8%/yr
FY21 901B KRW
FY22 1.2T KRW
FY23 380B KRW
FY24 773B KRW
FY25 372B KRW

000880 screens 26% overvalued. Compare with CITIC Limited →

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Cite: Fair Value Calculator (2026). "Hanwha Corporation Fair Value". https://www.fairvalue-calculator.com/stock/000880

Peer Group

Conglomerates · 370 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 30 · Bottom 25%
Fair Value upside −26% · Below median
Return on equity (TTM) 5% · Above median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 6% · Below median
Revenue growth 29% · Top 25%
Dividend yield (TTM) 1.2% · Below median
Debt / equity 1.98× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 1.3× · Cheaper than 75% of peers
PEG 0.21× · Cheaper than 75% of peers

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 21
FUTURE 100 · sector 16
PAST 21 · sector 20
HEALTH 1 · sector 88
DIVIDEND 24 · sector 39

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 Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
CITIC Limited 0267 HK$11.28 HK$22.56 +100%
Swire Pacific Limited 0019 HK$99.50 HK$16.77 -83%
SK Inc 034730 580,000 KRW 497,919 KRW -14%
PT Astra International Tbk, ASII 4,810 IDR 9,620 IDR +100%
Grupo Carso, S.A. GCARSOA1 127.02 MXN 66.21 MXN -48%
The Siam Cement Public Company SCC 254.00 THB 199.40 THB -21%
SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%

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Frequently asked questions

Is Hanwha Corporation (000880) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of 71,165 KRW versus a price of 96,000 KRW, about −26% (overvalued).
What is the fair value of 000880?
Our model-based fair value for Hanwha Corporation is 71,165 KRW (as of Jul 15, 2026), built from audited fundamentals. The current price is 96,000 KRW.
What is the quality score of 000880?
Hanwha Corporation has a Quality Score of 30/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hanwha Corporation (000880)?
Hanwha Corporation reported trailing-twelve-month revenue of about 79.6T KRW (latest available figure, as of Jul 15, 2026).
What is the net profit margin of 000880?
The net profit margin of Hanwha Corporation is about 0.6%, meaning it keeps roughly 0.6% of revenue as net income. Based on the latest reported figures.
Does Hanwha Corporation pay a dividend?
Hanwha Corporation currently shows a dividend yield of about 0.88% relative to its recent price (as of Jul 15, 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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