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SK Discovery Co (006120) Fair Value & Analysis

Energy · KR · Market cap 930B KRW

SD SK Discovery Co 006120 · KO
Price53,300 KRW
Fair Value128,476 KRW
Upside+141.0%
Quality42/100
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Mixed Growth
Thin margins · 2.2% net margin
Moderate debt · negative free cash flow
2.89% dividend yield
Ranks above peers (6/10)
Narrow moat 27/100
Evidence: Medium Range 96,357 KRW – 160,595 KRW Share as image

Fair value as of: Jul 22, 2026

From 16 valuation models · updated 19 days ago

Share price +7.0% over the past month.

Below-average quality, screening 141% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (96,357 KRW). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

66,400 KRW 25,002 KRW Fair Value 128,476 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range 25,002 KRW – 66,400 KRW · fair‑value band 96,357 KRW – 160,595 KRW · the 53,300 KRW price screens below the 128,476 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

Full chart & analysis →

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Analysis

SK Discovery Co (006120) currently trades at 53,300 KRW, while our model-based Fair Value estimate is 128,476 KRW, implying the stock looks roughly 141.0% undervalued today. The Quality Score stands at 42/100 (below-average quality), in the Energy 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: medium), always confirm before acting.

Over the trailing twelve months, SK Discovery Co generated revenue of 11.0T KRW at a net margin of 2.2%. Revenue grew 36.7% year over year. It earns a return on equity of 4.1%. Net debt stands at 4.7T KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 96,357 KRW (bear case) to 160,595 KRW (bull case); at 53,300 KRW, the current price sits below 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 22% below its 52-week high and 25% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -48% fair-value upside, at 141%, 006120 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 130,919 KRW 132,501 KRW 126,024 KRW 76
ROIC Compounder 40,766 KRW 74,344 KRW 104,191 KRW 72
Gordon GGM 39,344 KRW 85,895 KRW 144,522 KRW 70
All 16 models by family
Earnings-Based
Graham-Dodd 51,390 KRW 173,209 KRW 232,120 KRW 54
Lynch FV 39,518 KRW 56,454 KRW 73,390 KRW 50
PEG = 1.0 39,518 KRW 56,454 KRW 73,390 KRW 46
EPV 40,766 KRW 74,344 KRW 104,191 KRW 59
Dividend Discount
Gordon GGM 39,344 KRW 85,895 KRW 144,522 KRW 70
DDM Multi-Stage 39,344 KRW 68,843 KRW 89,516 KRW 61
Multiples
P/E Multiple 96,357 KRW 128,476 KRW 160,595 KRW 63
P/S Multiple 96,357 KRW 128,476 KRW 160,595 KRW 58
P/B Multiple 96,357 KRW 128,476 KRW 160,595 KRW 55
EV/EBIT 72,479 KRW 146,475 KRW 220,471 KRW 53
EV/EBITDA 237,891 KRW 367,024 KRW 496,158 KRW 54
EV/Revenue 42,880 KRW 125,333 KRW 207,786 KRW 43
Asset-Based
NCAV (Graham) 84,951 KRW 113,835 KRW 169,903 KRW 50
Economic Profit
Residual Income 130,919 KRW 132,501 KRW 126,024 KRW 76
ROIC Compounder 40,766 KRW 74,344 KRW 104,191 KRW 72
Growth Earnings
Growth-Adj P/E 84,214 KRW 120,306 KRW 156,397 KRW 68

Widest divergence: Multiples (128,476 KRW) versus Earnings-Based (56,454 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 11.0T KRW
Revenue growth (YoY) +36.7%
Net margin 2.2%
Return on equity 4.1%
Free cash flow −182B KRW FY2025
Operating margin 5.8%
More key figures
Dividend yield 3.4%
EPS growth (YoY) +252%
Net debt 4.7T KRW FY2025

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 40 · Market factors (momentum, volatility) 36

Profitability 25
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 12
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 64
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

SK Discovery Co., Ltd., through its subsidiaries, engages in environmental friendly materials, vaccines/pharmaceuticals, energy/chemicals, and real estate development businesses in South Korea and internationally. The company offers environmental friendly materials and healthcare solutions in the areas of treatment, prevention, and diagnosis to patients.

Full company description

SK Discovery Co., Ltd., through its subsidiaries, engages in environmental friendly materials, vaccines/pharmaceuticals, energy/chemicals, and real estate development businesses in South Korea and internationally. The company offers environmental friendly materials and healthcare solutions in the areas of treatment, prevention, and diagnosis to patients. It also engages in the storage of LPG; tank terminal; and power generation business, as well as real estate development of commercial facilities, office buildings, hotels, urban housings, luxury housings, and renewable energy generation facilities, such as solar and wind power generation. The company was formerly known as SK Chemicals Co., Ltd. and changed its name to SK Discovery Co., Ltd. in December 2017. SK Discovery Co., Ltd. was founded in 1969 and is based in Seongnam-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

SK Discovery Co reported revenue of 10.2T KRW in FY2025 versus 6.6T KRW in FY2021, a compound +11.3%/yr. Reported net income was 129B KRW in FY2025, compounding −11.7%/yr from FY2021.

Growth Quality 50/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
10.2T KRW
Latest YoY
+12.4%
Avg. growth/yr (3Y)
+5.3%
Avg. growth/yr (5Y)
+17.6%
Avg. growth/yr (25Y)
+9.7%
Revenue +11.3%/yr
FY21 6.6T KRW
FY22 8.7T KRW
FY23 8.9T KRW
FY24 9.0T KRW
FY25 10.2T KRW
Net income −11.7%/yr
FY21 213B KRW
FY22 427B KRW
FY23 191B KRW
FY24 36.5B KRW
FY25 129B KRW

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Cite: Fair Value Calculator (2026). "SK Discovery Co Fair Value". https://www.fairvalue-calculator.com/stock/006120

Peer Group

Oil & Gas Refining & Marketing · 114 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 42 · Bottom 25%
Fair Value upside +141% · Top 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 6% · Above median
Revenue growth 37% · Top 25%
Dividend yield (TTM) 2.9% · Above median
Debt / equity 1.33× · Higher than 75% of peers

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

EV/EBITDA 2.6× · 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 100 · sector 15
FUTURE 100 · sector 15
PAST 16 · sector 32
HEALTH 33 · sector 80
DIVIDEND 58 · sector 50

Values & ESG

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

Oil & gas

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

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,293 ₹835.66 -35%
Valero Energy Corporation VLO $309.65 $127.32 -59%
Marathon Petroleum Corporation MPC $283.74 $135.80 -52%
Phillips 66 PSX $196.16 $101.04 -48%
Neste Oyj NESTE €31.10 €4.07 -87%
Formosa Petrochemical Corporation 6505 81.30 TWD 16.68 TWD -79%
Indian Oil Corporation IOC ₹138.96 ₹417.35 +200%
HF Sinclair Corporation DINO $88.59 $48.90 -45%
Bharat Petroleum Corporation BPCL ₹315.55 ₹846.81 +168%
SK Innovation Co 096770 121,400 KRW 58,865 KRW -52%

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Frequently asked questions

Is SK Discovery Co (006120) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 128,476 KRW versus a price of 53,300 KRW, about +141% (undervalued).
What is the fair value of 006120?
Our model-based fair value for SK Discovery Co is 128,476 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 53,300 KRW.
What is the quality score of 006120?
SK Discovery Co has a Quality Score of 42/100. 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 SK Discovery Co (006120)?
SK Discovery Co reported trailing-twelve-month revenue of about 11.0T KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 006120?
The net profit margin of SK Discovery Co is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.
Does SK Discovery Co pay a dividend?
SK Discovery Co currently shows a dividend yield of about 3.35% relative to its recent price (as of Jul 22, 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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