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Hanwha (000880) Fair Value & Analysis

Industrials · KR · Market cap 8.1T KRW (≈ $5.7B) · ISIN KR7000880005

What is Hanwha really worth?

H Hanwha 000880 · KO
Price137,400 KRW
Fair Value198,658 KRW
Upside+44.6%
Quality30/100

Below-average quality, trading 31% below our fair value of 198,658 KRW.

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Strengths

Healthy Growth (revenue 5y +8.0 %/yr)

Risks

!Thin margins · 0.6% net margin
!High debt · generates free cash flow
!Mixed vs. peers (7/12)
!Narrow moat 30/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 21 out of 100
!Weak on balance sheet: 1 out of 100

For context

·0.80% dividend yield
Evidence: Medium Range 147,818 KRW – 246,363 KRW

Fair value as of: Aug 28, 2026

From 10 valuation models · updated 8 days ago

Share price +64.0% 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 (30/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (147,818 KRW). The market is more pessimistic than our downside scenario.

Price vs Fair Value (5 years)

193,709 KRW 26,501 KRW Fair Value 198,658 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range 26,501 KRW – 193,709 KRW · fair‑value band 147,818 KRW – 246,363 KRW · the 137,400 KRW price screens below the 198,658 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Hanwha (000880) currently trades at 137,400 KRW, while our model-based Fair Value estimate is 198,658 KRW, implying the stock looks roughly 30.8% undervalued today. The Quality Score stands at 30/100 (below-average quality), in the Industrials sector. Bull case: the Growth DCF group reads highest at a median of 604,836 KRW per share, and 4 of the 10 models we run sit above the 137,400 KRW price. Bear case: the Earnings-Based group reads lowest at 54,549 KRW, and 6 of the 10 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Hanwha generated revenue of 79.6T KRW at a net margin of 0.6%. Revenue grew 28.9% year over year. It earns a return on equity of 5.2%. Net debt stands at 45.5T KRW. Fundamentals as of Aug 28, 2026

Our scenario range runs from 147,818 KRW (bear case) to 246,363 KRW (bull case); at 137,400 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 17% below its 52-week high and 87% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 11% fair-value upside, at 45%, 000880 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 126,075 KRW 123,367 KRW 107,309 KRW 76
Growth DCF 294,534 KRW 604,836 KRW 1,148,465 KRW 74
Rev-Margin DCF 370,759 KRW 746,587 KRW 1,214,380 KRW 70
All 10 models by family
DCF Models
5Y P/E Exit 59,212 KRW 133,948 KRW 212,197 KRW 68
10Y P/E Exit 133,224 KRW 224,881 KRW 338,761 KRW 63
Earnings-Based
Graham-Dodd 36,509 KRW 151,297 KRW 206,212 KRW 64
Lynch FV 38,185 KRW 54,549 KRW 70,914 KRW 61
Multiples
P/E Multiple 84,562 KRW 112,750 KRW 140,937 KRW 63
P/B Multiple 68,455 KRW 91,274 KRW 114,092 KRW 55
Asset-Based
NCAV (Graham) 85,334 KRW 114,348 KRW 170,668 KRW 54
Growth DCF
Growth DCF 294,534 KRW 604,836 KRW 1,148,465 KRW 74
Rev-Margin DCF 370,759 KRW 746,587 KRW 1,214,380 KRW 70
Economic Profit
Residual Income best evidence 126,075 KRW 123,367 KRW 107,309 KRW 76

Widest divergence: Growth DCF (604,836 KRW) versus Earnings-Based (54,549 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

P/S ratio 0.14 TTM
Dividend yield 0.8%
Net margin 0.5% FY2025
Return on equity 5.2% TTM
Return on assets (EBIT) 1.2% avg 5y
Operating margin 5.9% TTM
More key figures
Growth
Revenue (TTM) 79.6T KRW TTM
Revenue growth (YoY) +28.9% 3y avg +13.7%
EPS growth (YoY) +78.1%
Balance sheet & cash flow
Free cash flow 2.2T KRW FY2025
Net debt 45.5T KRW FY2025 · ≈ 20.5 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 30/100

Of which business quality 29 · Market factors (momentum, volatility) 32

Profitability 15
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 8
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 10
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 68
Distance to the 52-week high (market factor)
Net Issuance 8
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

Hanwha Corporation engages in the manufacture and sale of explosives and industrial machinery, trading, and general construction businesses.

Full company description

Hanwha Corporation engages in the manufacture and sale of explosives and industrial machinery, trading, and general construction businesses. The company operates through Gunpowder Manufacturing; Wholesale and Retail; Chemical Manufacturing; Shipbuilding Industry; Construction Industry; Leisure/Service Industry; Solar Power Business; Financial Industry; And Other Sectors segments. It is involved in manufacturing and sales of explosives, such as defense products, industrial explosives, etc.; trade and wholesale/retail business; ship design, manufacturing and construction; construction industry, such as architecture, civil engineering, plant, environment, housing business, etc.; sports facility operation and tourism accommodation, IT outsourcing; manufacturing and sales of solar energy-related products and solar power generation; insurance business, deposit income business, securities brokerage business; and other manufacturing and sales business. The company also produces and sells military equipment, such as self-propelled guns, armored vehicles, precision-guided weapons, conventional ammunition, and radars; gas turbine engines and engine parts, aircraft machinery parts, etc.; and CCTVs, storage devices, monitors, etc. In addition, it engages in the trade, department stores, and wholesale and retail of petroleum/petrochemical, steel/non-ferrous, machinery, agricultural, livestock, fishery products, mineral resources, etc. Further, the company is involved in the production and maintenance of parts for aircraft, launch vehicles, and various engines; satellite systems, electro-optical cameras, satellite ground stations, etc.; and building ships and special vessels. Additionally, it engages golf course; hotel; and real estate industry. The company was formerly known as Korea Explosives Corp. and changed its name to Hanwha Corporation in March 1993. Hanwha Corporation was founded in 1952 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

Hanwha reported revenue of 74.8T KRW in FY2025 versus 52.8T KRW in FY2021, a compound +9.1%/yr. Reported net income was 372B KRW in FY2025, compounding −19.8%/yr from FY2021.

Growth Quality 71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
74.8T KRW
Latest YoY
+34.4%
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.
+13.7%
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.
+8.0%
Avg. revenue growth/yr (25Y) 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.
+12.2%
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.
+7.0% (6.2 + 0.8)
Revenue +9.1%/yr
FY21 52.8T KRW
FY22 50.9T KRW
FY23 53.1T KRW
FY24 55.6T KRW
FY25 74.8T KRW
Net income −19.8%/yr
FY21 901B KRW
FY22 1.2T KRW
FY23 380B KRW
FY24 773B KRW
FY25 372B KRW

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Cite: Fair Value Calculator (2026). "Hanwha Fair Value". https://www.fairvalue-calculator.com/stock/000880

Peer Group

Conglomerates · 375 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 30 · Bottom 25%
Fair Value upside +45% · Above median
Return on equity (TTM) 5% · Above median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth 29% · Top 25%
Dividend yield (TTM) 0.8% · Below median
Debt / equity 1.98× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 1.3× · Cheaper than 75% of peers
PEG 0.21× · 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
VALUE93 · sector 23
FUTURE100 · sector 17
PAST21 · sector 17
HEALTH1 · sector 89
DIVIDEND16 · sector 42

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

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Frequently asked questions

Is Hanwha (000880) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of 198,658 KRW versus a price of 137,400 KRW, about +45% upside (undervalued).
What is the fair value of 000880?
Our model-based fair value for Hanwha is 198,658 KRW (as of Aug 28, 2026), built from audited fundamentals. The current price: 137,400 KRW.
What is the quality score of 000880?
Hanwha has a Quality Score of 30/100. 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 Hanwha (000880)?
Hanwha reported trailing-twelve-month revenue of about 79.6T KRW (latest available figure, as of Aug 28, 2026).
What is the net profit margin of 000880?
The net profit margin of Hanwha is about 0.6%, meaning it keeps roughly 0.6% of revenue as net income. Based on the latest reported figures.
Does Hanwha pay a dividend?
Hanwha currently shows a dividend yield of about 0.80% relative to its recent price (as of Aug 28, 2026).
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