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Hanwha Ocean Co (042660) Fair Value & Analysis

Industrials · KR · Market cap 24.9T KRW

HO Hanwha Ocean Co 042660 · KO
Price90,700 KRW
Fair Value44,212 KRW
Upside-51.3%
Quality41/100
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Mixed Growth
Solidly profitable · 11.9% net margin
Low debt · generates free cash flow
Ranks above peers (8/11)
Moderate moat 60/100
Evidence: High Range 29,325 KRW – 86,416 KRW Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 26 days ago

Fair value updated Jul 12, 2026, revised from 44,427 KRW to 44,212 KRW (−0.5%) since Jul 6, 2026. Share price +1.0% over the past month.

Below-average quality, and screening another 51% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (86,416 KRW). The favourable scenario is already priced in.
  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (29,325 KRW to 86,416 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

149,900 KRW 15,296 KRW Fair Value 44,212 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range 15,296 KRW – 149,900 KRW · fair‑value band 29,325 KRW – 86,416 KRW · the 90,700 KRW price screens above the 44,212 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

Full chart & analysis →

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Analysis

Hanwha Ocean Co (042660) currently trades at 90,700 KRW, while our model-based Fair Value estimate is 44,212 KRW, implying the stock looks roughly 51.3% overvalued today. We read business quality at 41/100 (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: high).

Over the trailing twelve months, Hanwha Ocean Co generated revenue of 12.9T KRW at a net margin of 11.9%. Revenue grew 2.1% year over year. It earns a return on equity of 25.7%. Net debt stands at 4.9T KRW. Fundamentals as of Jul 12, 2026

Our scenario range runs from 29,325 KRW (bear case) to 86,416 KRW (bull case); at 90,700 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 41% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -55% fair-value upside, at -51%, 042660 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
Growth DCF 18,220 KRW 29,466 KRW 46,073 KRW 80
Residual Income 28,735 KRW 40,910 KRW 239,855 KRW 76
Rev-Margin DCF 24,577 KRW 43,545 KRW 64,605 KRW 74
All 26 models by family
DCF Models
FCF DCF 17,618 KRW 29,965 KRW 49,194 KRW 38
Owner Earnings 23,856 KRW 39,591 KRW 64,096 KRW 31
5Y Revenue Exit 24,577 KRW 43,638 KRW 67,792 KRW 39
5Y EBITDA Exit 28,901 KRW 51,556 KRW 77,618 KRW 41
5Y P/E Exit 38,210 KRW 68,603 KRW 99,982 KRW 38
10Y Revenue Exit 20,823 KRW 37,828 KRW 60,213 KRW 36
10Y EBITDA Exit 24,711 KRW 43,389 KRW 67,738 KRW 37
10Y P/E Exit 30,730 KRW 55,361 KRW 84,863 KRW 35
Earnings-Based
Graham-Dodd 27,653 KRW 76,901 KRW 101,060 KRW 54
Lynch FV 15,429 KRW 22,041 KRW 28,653 KRW 50
PEG = 1.0 15,429 KRW 22,041 KRW 28,653 KRW 46
EPV 29,615 KRW 35,745 KRW 41,193 KRW 59
Dividend Discount
Gordon GGM 912.62 KRW 1,992 KRW 3,352 KRW 70
DDM Multi-Stage 912.62 KRW 1,467 KRW 2,076 KRW 61
Multiples
P/E Multiple 60,999 KRW 81,332 KRW 101,665 KRW 63
P/S Multiple 51,849 KRW 69,132 KRW 86,416 KRW 58
P/B Multiple 45,317 KRW 60,422 KRW 75,528 KRW 55
EV/EBIT 46,982 KRW 64,349 KRW 81,715 KRW 53
EV/EBITDA 39,923 KRW 54,936 KRW 69,950 KRW 54
EV/Revenue 30,001 KRW 45,052 KRW 60,103 KRW 43
Asset-Based
NCAV (Graham) 10,070 KRW 13,494 KRW 20,141 KRW 50
Growth DCF
Growth DCF 18,220 KRW 29,466 KRW 46,073 KRW 80
Rev-Margin DCF 24,577 KRW 43,545 KRW 64,605 KRW 74
Economic Profit
Residual Income 28,735 KRW 40,910 KRW 239,855 KRW 76
ROIC Compounder 31,358 KRW 41,408 KRW 53,640 KRW 72
Growth Earnings
Growth-Adj P/E 48,801 KRW 69,716 KRW 90,631 KRW 68

Widest divergence: Growth Earnings (69,716 KRW) versus Dividend Discount (1,467 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 12.9T KRW
Revenue growth (YoY) +2.1%
Net margin 11.9%
Return on equity 25.7%
Free cash flow 598B KRW FY2025
Operating margin 13.7%
More key figures
EPS growth (YoY) +131%
Net debt 4.9T KRW FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 45 · Market factors (momentum, volatility) 31

Profitability 45
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 35
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 50
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 Ocean Co., Ltd. operates as a shipbuilding and offshore contractor in South Korea and internationally. The company offers commercial vessels, including tankers, container carriers, bulk carriers, ore carriers, liquefied natural gas (LNG) and liquefied petroleum gas carriers, LNG floating storage regasification units, chemical carriers, and other …

Full company description

Hanwha Ocean Co., Ltd. operates as a shipbuilding and offshore contractor in South Korea and internationally. The company offers commercial vessels, including tankers, container carriers, bulk carriers, ore carriers, liquefied natural gas (LNG) and liquefied petroleum gas carriers, LNG floating storage regasification units, chemical carriers, and other vessels; and FLNG, fixed platforms, and drilling rigs; and FPSO/FPU/FSOs for offshore oil and gas exploration and production, as well as provision of engineering and construction, including commercial and residential building, infrastructure, environmental facilities, and power plants. It is also provides electronic detonators, blasting systems, industrial explosives products, mining services, petrochemicals, and inorganic compounds; display manufacturing and logistics equipment, autonomous guided vehicles; space launch vehicle engines, satellite services, gas turbine engines and components, and aircraft components; artillery systems, armored vehicles, air defense systems, unmanned ground systems, precision-guided munitions, and navigation systems; lithium-ion battery systems for submarines and ships; and ship engines and generators. In addition, the company provides system integration, application management, cloud management, artificial intelligence, cloud computing, video surveillance solutions; automation equipment; and industrial compressors. Further, it manufactures ethylene, propylene, butadiene, gasoline, diesel, jet fuel, LPG, and solvents. Additionally, the company provides life insurance, mortgage and personal loans, trust, fund, retirement pension, automobile insurance, general insurance, securities brokerage and underwriting, and asset management. It also involved in the real estate development, insurance agency, retail, fashion, food & beverage businesses. The company was founded in 1952 and is headquartered in Geoje-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hanwha Ocean Co reported revenue of 12.8T KRW in FY2025 versus 4.5T KRW in FY2021, a compound +29.9%/yr. Reported net income was 1.2T KRW in FY2025.

Growth Quality 83/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
12.8T KRW
Latest YoY
+18.6%
Avg. growth/yr (3Y)
+38.0%
Avg. growth/yr (5Y)
+12.7%
Avg. growth/yr (25Y)
+11.7%
Revenue +29.9%/yr
FY21 4.5T KRW
FY22 4.9T KRW
FY23 7.4T KRW
FY24 10.8T KRW
FY25 12.8T KRW
Net income
FY21 −1.7T KRW
FY22 −1.7T KRW
FY23 160B KRW
FY24 528B KRW
FY25 1.2T KRW

042660 screens 51% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "Hanwha Ocean Co Fair Value". https://www.fairvalue-calculator.com/stock/042660

Peer Group

Aerospace & Defense · 227 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 −51% · Above median
Return on equity (TTM) 26% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 12% · Above median
Operating margin (TTM) 14% · Above median
Revenue growth 2% · Below median
Debt / equity 0.38× · Higher than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 1.0× · Cheaper than 75% of peers
PEG 0.44× · 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 0
FUTURE 11 · sector 47
PAST 100 · sector 39
HEALTH 81 · sector 93
DIVIDEND 0 · sector 15

VALUE 0: the price sits above our fair-value range.

Insider activity: 35/100

Values & ESG

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

Weapons Defense

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

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $381.22 $116.71 -69%
RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €206.30 €92.85 -55%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is Hanwha Ocean Co (042660) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of 44,212 KRW versus a price of 90,700 KRW, about −51% (overvalued).
What is the fair value of 042660?
Our model-based fair value for Hanwha Ocean Co is 44,212 KRW (as of Jul 12, 2026), built from audited fundamentals. The current price is 90,700 KRW.
What is the quality score of 042660?
Hanwha Ocean Co has a Quality Score of 41/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Hanwha Ocean Co (042660)?
Hanwha Ocean Co reported trailing-twelve-month revenue of about 12.9T KRW (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 042660?
The net profit margin of Hanwha Ocean Co is about 11.9%, meaning it keeps roughly 11.9% of revenue as net income. Based on the latest reported figures.

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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