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SK Discovery Co Ltd (006125) Fair Value & Analysis

Energy · KR · Market cap 704B KRW (≈ $493M) · ISIN KR7006121008

What is SK Discovery Co Ltd really worth?

SD SK Discovery Co Ltd 006125 · KO
Price40,600 KRW
Fair Value119,861 KRW
Upside+195.2%
Quality42/100

Below-average quality, trading 66% below our fair value of 119,861 KRW.

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Risks

!Expensive Growth (revenue 5y +17.6 %/yr)
!Thin margins · 2.2% net margin
!Moderate debt · negative free cash flow
!Mixed vs. peers (5/10)
!Narrow moat 31/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 16 out of 100

For context

·3.82% dividend yield
Evidence: Medium Range 111,047 KRW – 164,684 KRW

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 18 days ago

Share price +6.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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 (111,047 KRW). The market is more pessimistic than our downside scenario.

Price vs Fair Value (5 years)

43,650 KRW 21,826 KRW Fair Value 119,861 KRW Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 21,826 KRW – 43,650 KRW · fair‑value band 111,047 KRW – 164,684 KRW · the 40,600 KRW price screens below the 119,861 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

SK Discovery Co Ltd (006125) currently trades at 40,600 KRW, while our model-based Fair Value estimate is 119,861 KRW, implying the stock looks roughly 66.1% undervalued today. The Quality Score stands at 42/100 (below-average quality), in the Energy sector. Bull case: the Growth Earnings group reads highest at a median of 127,893 KRW per share, and 16 of the 16 models we run sit above the 40,600 KRW price. Bear case: the Earnings-Based group reads lowest at 40,823 KRW, and 0 of the 16 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, SK Discovery Co Ltd 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 Aug 13, 2026

Our scenario range runs from 111,047 KRW (bear case) to 164,684 KRW (bull case); at 40,600 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 7% below its 52-week high and 24% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at −56% fair-value upside, at 195%, 006125 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
Highest evidence
Residual Income best evidence 122,140 KRW 123,616 KRW 117,573 KRW 76
EPV 38,032 KRW 69,359 KRW 97,204 KRW 71
ROIC Compounder 38,032 KRW 69,359 KRW 97,204 KRW 70
All 16 models by family
Earnings-Based
Graham-Dodd 47,944 KRW 138,430 KRW 182,677 KRW 65
Lynch FV 28,576 KRW 40,823 KRW 53,070 KRW 61
PEG = 1.0 28,576 KRW 40,823 KRW 53,070 KRW 57
EPV 38,032 KRW 69,359 KRW 97,204 KRW 71
Dividend Discount
Gordon GGM 36,706 KRW 80,135 KRW 134,830 KRW 65
DDM Multi-Stage 36,706 KRW 59,904 KRW 83,513 KRW 66
Multiples
P/E Multiple 111,047 KRW 148,063 KRW 185,079 KRW 63
P/S Multiple 89,895 KRW 119,861 KRW 149,826 KRW 58
P/B Multiple 89,895 KRW 119,861 KRW 149,826 KRW 55
EV/EBIT 111,997 KRW 195,824 KRW 279,651 KRW 64
EV/EBITDA 330,364 KRW 486,980 KRW 643,596 KRW 66
EV/Revenue 40,005 KRW 116,928 KRW 193,852 KRW 50
Asset-Based
NCAV (Graham) 79,255 KRW 106,201 KRW 158,509 KRW 54
Economic Profit
Residual Income best evidence 122,140 KRW 123,616 KRW 117,573 KRW 76
ROIC Compounder 38,032 KRW 69,359 KRW 97,204 KRW 70
Growth Earnings
Growth-Adj P/E 89,525 KRW 127,893 KRW 166,261 KRW 67

Widest divergence: Growth Earnings (127,893 KRW) versus Earnings-Based (40,823 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

P/S ratio 0.06 TTM
Dividend yield 3.8%
Net margin 1.3% FY2025
Return on equity 4.1% TTM
Return on assets (EBIT) 1.9% avg 5y
Operating margin 5.8% TTM
More key figures
Growth
Revenue (TTM) 11.0T KRW TTM
Revenue growth (YoY) +36.7% 3y avg +5.3%
EPS growth (YoY) +252%
Balance sheet & cash flow
Free cash flow −182B KRW FY2025
Net debt 4.7T KRW FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 40 · Market factors (momentum, volatility) 59

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 11
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 57
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 Ltd 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 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
10.2T KRW
Latest YoY
+12.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.6%
Avg. revenue growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.7%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
−5.6% (−9.4 + 3.8)
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 Ltd Fair Value". https://www.fairvalue-calculator.com/stock/006125

Peer Group

Oil & Gas Refining & Marketing · 116 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 +195% · Top 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Bottom 25%
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth 37% · Top 25%
Dividend yield (TTM) 3.8% · 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

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 14
FUTURE100 · sector 14
PAST16 · sector 33
HEALTH33 · sector 85
DIVIDEND76 · sector 55

Values & ESG

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

Oil & gas

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,314 ₹835.66 −36%
Valero Energy Corporation VLO $352.36 $127.32 −64%
Marathon Petroleum Corporation MPC $368.83 $133.18 −64%
Phillips 66 PSX $242.23 $99.41 −59%
Neste Oyj NESTE €31.28 €3.83 −88%
Formosa Petrochemical Corporation 6505 75.80 TWD 15.32 TWD −80%
HF Sinclair Corporation DINO $87.93 $44.96 −49%
Bharat Petroleum Corporation BPCL ₹318.00 ₹846.81 +166%
SK Innovation Co 096770 122,400 KRW 53,541 KRW −56%
Sunoco LP, SUN $75.55 $53.36 −29%

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Frequently asked questions

Is SK Discovery Co Ltd (006125) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 119,861 KRW versus a price of 40,600 KRW, about +195% upside (undervalued).
What is the fair value of 006125?
Our model-based fair value for SK Discovery Co Ltd is 119,861 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 40,600 KRW.
What is the quality score of 006125?
SK Discovery Co Ltd 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 Ltd (006125)?
SK Discovery Co Ltd reported trailing-twelve-month revenue of about 11.0T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 006125?
The net profit margin of SK Discovery Co Ltd 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 Ltd pay a dividend?
SK Discovery Co Ltd currently shows a dividend yield of about 3.82% relative to its recent price (as of Aug 13, 2026).
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