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Korean Airlines Co (003490) Fair Value & Analysis

Industrials · KR · Market cap 9.8T KRW

KA Korean Airlines Co 003490 · KO
Price27,150 KRW
Fair Value33,054 KRW
Upside+21.8%
Quality41/100
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Expensive Growth
Thin margins · 2.4% net margin
Moderate debt · negative free cash flow
2.81% dividend yield
Mixed vs. peers (5/10)
Narrow moat 31/100
Evidence: High Range 24,916 KRW – 42,970 KRW Share as image

Fair value as of: Jul 16, 2026

From 16 valuation models · updated 24 days ago

Share price −3.6% over the past month.

Below-average quality, screening 22% undervalued on our models.

What matters now

  • Our model range runs from 24,916 KRW (bear) to 42,970 KRW (bull), base 33,054 KRW. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 41/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

30,436 KRW 17,616 KRW Fair Value 33,054 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 17,616 KRW – 30,436 KRW · fair‑value band 24,916 KRW – 42,970 KRW · the 27,150 KRW price screens below the 33,054 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Korean Airlines Co (003490) currently trades at 27,150 KRW, while our model-based Fair Value estimate is 33,054 KRW, implying the stock looks roughly 21.8% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Korean Airlines Co generated revenue of 25.4T KRW at a net margin of 2.4%. Revenue grew 2.6% year over year. It earns a return on equity of 3.0%. Net debt stands at 7.6T KRW. Fundamentals as of Jul 16, 2026

Our scenario range runs from 24,916 KRW (bear case) to 42,970 KRW (bull case); at 27,150 KRW, the current price sits within 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 6% below its 52-week high and 33% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 40% fair-value upside, at 22%, 003490 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
Residual Income 24,612 KRW 26,133 KRW 28,668 KRW 76
ROIC Compounder 3,943 KRW 6,612 KRW 8,984 KRW 72
Gordon GGM 7,554 KRW 16,492 KRW 27,748 KRW 70
All 16 models by family
Earnings-Based
Graham-Dodd 14,398 KRW 51,221 KRW 68,971 KRW 54
Lynch FV 12,035 KRW 17,193 KRW 22,351 KRW 50
PEG = 1.0 12,035 KRW 17,193 KRW 22,351 KRW 46
EPV 3,943 KRW 6,612 KRW 8,984 KRW 59
Dividend Discount
Gordon GGM 7,554 KRW 16,492 KRW 27,748 KRW 70
DDM Multi-Stage 7,554 KRW 13,509 KRW 17,187 KRW 61
Multiples
P/E Multiple 33,349 KRW 44,466 KRW 55,582 KRW 63
P/S Multiple 26,997 KRW 35,996 KRW 44,995 KRW 58
P/B Multiple 26,997 KRW 35,996 KRW 44,995 KRW 55
EV/EBIT 27,381 KRW 40,234 KRW 53,087 KRW 53
EV/EBITDA 93,909 KRW 128,939 KRW 163,968 KRW 54
EV/Revenue 16,343 KRW 28,137 KRW 39,932 KRW 43
Asset-Based
NCAV (Graham) 14,874 KRW 19,932 KRW 29,749 KRW 50
Economic Profit
Residual Income 24,612 KRW 26,133 KRW 28,668 KRW 76
ROIC Compounder 3,943 KRW 6,612 KRW 8,984 KRW 72
Growth Earnings
Growth-Adj P/E 23,138 KRW 33,054 KRW 42,970 KRW 68

Widest divergence: Multiples (35,996 KRW) versus Economic Profit (6,612 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 25.4T KRW
Revenue growth (YoY) +2.6%
Net margin 2.4%
Return on equity 3.0%
Free cash flow −221B KRW FY2025
Operating margin 7.8%
More key figures
Dividend yield 2.8%
EPS growth (YoY) -57.2%
Net debt 7.6T KRW FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 41 · Market factors (momentum, volatility) 55

Profitability 26
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 28
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 53
Distance to the 52-week high (market factor)
Net Issuance 80
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

Korean Airlines Co.,Ltd. provides airline services. It operates through Air Transport, Aerospace, Hotel, and Others segments. The company provides passenger and cargo transportation services and maintenance of aircraft and manufacturing of aircraft parts.

Full company description

Korean Airlines Co.,Ltd. provides airline services. It operates through Air Transport, Aerospace, Hotel, and Others segments. The company provides passenger and cargo transportation services and maintenance of aircraft and manufacturing of aircraft parts. It also engages in hotel, hotel management, accommodation, software development and supply, aircraft engine repair, sports and leisure services, cargo information network service, online sales, aircraft transport services, information technology services, airport support services, online sales, facilities support management services, and small aircraft transport service. Additionally, the company offers cargo information network services; and supplies labors. It operates a fleet of 162 aircraft connecting 10 domestic and 106 international destinations in 39 countries. Korean Airlines Co.,Ltd. was founded in 1962 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

Korean Airlines Co reported revenue of 25.2T KRW in FY2025 versus 9.0T KRW in FY2021, a compound +29.3%/yr. Reported net income was 780B KRW in FY2025, compounding +7.8%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
25.2T KRW
Latest YoY
+41.2%
Avg. growth/yr (3Y)
+21.4%
Avg. growth/yr (5Y)
+27.1%
Avg. growth/yr (25Y)
+6.1%
Revenue +29.3%/yr
FY21 9.0T KRW
FY22 14.1T KRW
FY23 16.1T KRW
FY24 17.9T KRW
FY25 25.2T KRW
Net income +7.8%/yr
FY21 578B KRW
FY22 1.7T KRW
FY23 1.1T KRW
FY24 1.3T KRW
FY25 780B KRW

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Cite: Fair Value Calculator (2026). "Korean Airlines Co Fair Value". https://www.fairvalue-calculator.com/stock/003490

Peer Group

Airlines · 60 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 41 · Below median
Fair Value upside +22% · Above median
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 8% · Above median
Revenue growth 3% · Bottom 25%
Dividend yield (TTM) 2.8% · Above median
Debt / equity 0.55× · Lower than median

Valuation Multiples vs Airlines median · lower = cheaper

EV/EBITDA 1.0× · 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 62 · sector 37
FUTURE 13 · sector 46
PAST 12 · sector 46
HEALTH 73 · sector 72
DIVIDEND 56 · sector 41

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 Airlines stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $84.17 $118.24 +40%
United Airlines Holdings UAL $120.97 $175.62 +45%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $47.56 $14.76 -69%
InterGlobe Aviation Limited INDIGO ₹5,249 ₹3,704 -29%
Singapore Airlines Limited C6L 7.60 SGD 7.89 SGD +4%
Air China Limited 601111 ¥5.97 ¥7.16 +20%
LATAM Airlines Group LTM $54.87 $106.79 +95%
Deutsche Lufthansa AG 1LHA €8.57 €15.42 +80%
China Southern Airlines Company 600029 ¥4.99 ¥1.28 -74%

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Frequently asked questions

Is Korean Airlines Co (003490) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 33,054 KRW versus a price of 27,150 KRW, about +22% (undervalued).
What is the fair value of 003490?
Our model-based fair value for Korean Airlines Co is 33,054 KRW (as of Jul 16, 2026), built from audited fundamentals. The current price is 27,150 KRW.
What is the quality score of 003490?
Korean Airlines Co has a Quality Score of 41/100. 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 Korean Airlines Co (003490)?
Korean Airlines Co reported trailing-twelve-month revenue of about 25.4T KRW (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 003490?
The net profit margin of Korean Airlines Co is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.
Does Korean Airlines Co pay a dividend?
Korean Airlines Co currently shows a dividend yield of about 3.01% relative to its recent price (as of Jul 16, 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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