Cho Kwang Leat (004700) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Cho Kwang Leat KRW 40,486, price KRW 65,200, upside -37.9%, quality 56 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range 39,752 KRW – 84,500 KRW · fair‑value band 32,333 KRW – 52,908 KRW · the 65,200 KRW price screens above the 40,486 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Chokwang Leather Co.,Ltd. manufactures and sells leather products in South Korea. It offers leather fabrics for shoes, handbags, furniture, and car seats. The company was founded in 1936 and is headquartered in Cheongju-si, South Korea.
Stock analysis
Cho Kwang Leat (004700) currently trades at 65,200 KRW, while our model-based Fair Value estimate is 40,486 KRW, implying the stock looks roughly 61.0% overvalued today.
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Valuation
Bull case: the Asset-Based group reads highest at a median of 108,972 KRW per share, and 3 of the 22 models we run sit above the 65,200 KRW price.
Bear case: the Earnings-Based group reads lowest at 18,079 KRW, and 19 of the 22 models stay below the price. Evidence for this calculation is medium.
Scenario range: 32,333 KRW (bear) to 52,908 KRW (bull), the price of 65,200 KRW sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 56/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Cho Kwang Leat reported revenue of 97.9B KRW in FY2025 versus 104B KRW in FY2021, a compound −1.6%/yr. Reported net income was 11.5B KRW in FY2025, compounding +0.7%/yr from FY2021.
Key figures
Market cap 232B KRW (≈ $170M) · P/S ratio 1.31 · Net margin 11.8% · Return on equity 10.2% · Return on assets (EBIT) 1.3% · Operating margin 9.2% · Revenue (TTM) 174B KRW · Revenue growth (YoY) −23.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 19% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −38% fair-value upside, at −38%, 004700 screens cheaper than that median.
Fair Value models
Bear 32,333 KRWFair Value 40,486 KRWBull 52,908 KRW
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.74/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
What shareholders gained per year (last 5 years), in KRW ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−4.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−4.5%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.16% → 9%
⚠ Revenue per share shrinking 4.2%/yr over ~6Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+13.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (South Korea: IMF forecast 2.1% a year to 2030, 2.1% from 2016 to 2025) that is about +11.4% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Auto Parts · 692 stocks
Beats the industry median on 7/9 measures
Overall it ranks above its industry peers.
Valuation
Quality Score56 · Above median
Fair Value upside−38% · Below median
Profitability
Return on equity (TTM)10% · Above median
Return on assets7% · Top 25%
Net margin (TTM)13% · Top 25%
Operating margin (TTM)9% · Above median
Growth and dividend
Revenue growth−23% · Bottom 25%
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Auto Parts median · lower = cheaper
P/FCF0.0× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 24
FUTURE (revenue growth)0· sector 21
PAST (return on equity)41· sector 28
HEALTH (low debt)98· sector 95
DIVIDEND (yield)0· sector 38
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Cho Kwang Leat (004700) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of 40,486 KRW versus a price of 65,200 KRW, about −38% upside (overvalued).
What is the fair value of 004700?
Our model-based fair value for Cho Kwang Leat is 40,486 KRW (as of Sep 24, 2026), built from audited fundamentals. The current price: 65,200 KRW.
What is the quality score of 004700?
Cho Kwang Leat has a Quality Score of 56/100. 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 price target for Cho Kwang Leat (004700)?
Our model-based price target is the fair value of 40,486 KRW (as of Sep 24, 2026) from 22 valuation models. Cautious scenario 32,333 KRW, optimistic scenario 52,908 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the Cho Kwang Leat stock forecast for 2026?
Our models put fair value at 40,486 KRW, about −38% upside versus a price of 65,200 KRW (overvalued). Cautious scenario 32,333 KRW, optimistic scenario 52,908 KRW. The calculation is refreshed regularly with new filings.
What is the revenue of Cho Kwang Leat (004700)?
Cho Kwang Leat reported trailing-twelve-month revenue of about 174B KRW (latest available figure, as of Sep 24, 2026).
What growth is priced into Cho Kwang Leat (004700)?
For today's price to be fair in a discounted-cash-flow model, Cho Kwang Leat would have to grow free cash flow by +13.7 % per year for five years (discount rate 11.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.1 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 004700 use?
Our models discount Cho Kwang Leat at 11.6 %: a base by market capitalisation (micro), damped by beta 0.33, country premium for South Korea. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cho Kwang Leat that is +13.7 % per year a year over ten years, using the same discount rate (11.6 %) and the same formula as our fair value.
How much growth has Cho Kwang Leat (004700) delivered so far?
Over the past 5 years revenue at Cho Kwang Leat grew +0.1 % a year. The price currently implies +13.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cho Kwang Leat (004700) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into Cho Kwang Leat (+13.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cho Kwang Leat (004700)?
The free-cash-flow yield on the price is 4.99 %: that much free cash flow Cho Kwang Leat produces per unit of market value. When it exceeds the discount rate of our models (11.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cho Kwang Leat (004700)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cho Kwang Leat it is 40,486 KRW per share (as of Sep 24, 2026), against a price of 65,200 KRW. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Cho Kwang Leat stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 004700 trades above its calculated fair value: price 65,200 KRW, fair value 40,486 KRW, a gap of about −38% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 004700?
No. The price is what the market pays today (65,200 KRW); the fair value is what the company's own numbers justify (40,486 KRW). For Cho Kwang Leat the two are 24,714 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is Cho Kwang Leat worth?
The market values Cho Kwang Leat at about 232B KRW (market capitalisation, as of Sep 24, 2026). Per share that is 65,200 KRW; our models calculate a fair value of 40,486 KRW per share.
What do the bullish and bearish scenarios say about 004700?
Our models span a range for Cho Kwang Leat: cautious scenario 32,333 KRW, base 40,486 KRW, optimistic 52,908 KRW per share (as of Sep 24, 2026, price 65,200 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Cho Kwang Leat (004700)?
Balance-sheet figures for Cho Kwang Leat (as of Sep 24, 2026): return on equity 10.2%, debt of 0.04 per unit of equity. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is 004700 from its 52-week high?
Cho Kwang Leat trades at 65,200 KRW, about 19% below its 52-week high of 80,100 KRW and 10% above the low of 59,100 KRW (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of 40,486 KRW is for.
Which stocks are comparable to Cho Kwang Leat?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cho Kwang Leat stock attractive at the current price?
The data as of Sep 24, 2026: price 65,200 KRW, calculated fair value 40,486 KRW (−38%), Quality Score 56/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 004700 calculated?
We run Cho Kwang Leat through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 40,486 KRW, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. Cho Kwang Leat itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cho Kwang Leat (004700)?
The closing price on Sep 23, 2026 was 65,200 KRW. Our model-based fair value is 40,486 KRW, about −38% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cho Kwang Leat right now?
The price sits above even our optimistic bull case (52,908 KRW). The favourable scenario is already priced in. Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Cho Kwang Leat
How large is the market capitalisation of Cho Kwang Leat (004700)?
The market capitalisation of Cho Kwang Leat is 232B KRW (≈ $170M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cho Kwang Leat (004700)?
The price-to-sales ratio of Cho Kwang Leat is 1.31 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the net margin of Cho Kwang Leat (004700)?
The net margin of Cho Kwang Leat is 11.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cho Kwang Leat (004700)?
The return on equity (ROE) of Cho Kwang Leat is 10.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cho Kwang Leat (004700)?
On an EBIT basis the return on assets of Cho Kwang Leat is 1.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cho Kwang Leat (004700)?
The operating margin of Cho Kwang Leat is 9.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cho Kwang Leat (004700)?
Revenue at Cho Kwang Leat is growing −23.3% versus a year earlier (3y avg −7.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cho Kwang Leat (004700)?
Earnings per share at Cho Kwang Leat are growing −32.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Cho Kwang Leat (004700) carry?
The net debt of Cho Kwang Leat is 270M KRW (fiscal year 2022, ≈ 0.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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