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Hanwha Aerospace Co Ltd (012450) Fair Value & Analysis

Industrials · KR · Market cap 49.8T KRW (≈ $34.8B) · ISIN KR7012450003

What is Hanwha Aerospace Co Ltd really worth?

HA Hanwha Aerospace Co Ltd 012450 · KO
Price1,055,000 KRW
Fair Value487,447 KRW
Upside−53.8%
Quality39/100

Below-average quality, and trading another 116% above our fair value of 487,447 KRW.

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Strengths

Healthy Growth (revenue 5y +38.1 %/yr)
Moderate debt · generates free cash flow

Risks

!Thin margins · 6.0% net margin
!Trails peers (3/10)
!Moderate moat 50/100
!Evidence only low, so the estimate is less certain
!Weak on future: 25 out of 100
!Weak on dividend: 13 out of 100

For context

·0.66% dividend yield
Evidence: Low Range 365,586 KRW – 622,401 KRW

Fair value as of: Aug 18, 2026

From 24 valuation models · updated 17 days ago

Share price +14.8% over the past month.

What runs behind every stock

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

What matters now

  • The price sits above even our optimistic bull case (622,401 KRW). The favourable scenario is already priced in.
  • Weak quality (39/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

1,537,000 KRW 38,369 KRW Fair Value 487,447 KRW Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

60‑month range 38,369 KRW – 1,537,000 KRW · fair‑value band 365,586 KRW – 622,401 KRW · the 1,055,000 KRW price screens above the 487,447 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

Hanwha Aerospace Co Ltd (012450) currently trades at 1,055,000 KRW, while our model-based Fair Value estimate is 487,447 KRW, implying the stock looks roughly 116.5% overvalued today. The Quality Score stands at 39/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of 1,181,074 KRW per share, and 9 of the 24 models we run sit above the 1,055,000 KRW price. Bear case: the Asset-Based group reads lowest at 126,123 KRW, and 15 of the 24 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Hanwha Aerospace Co Ltd generated revenue of 27.0T KRW at a net margin of 6.0%. Revenue grew 4.9% year over year. It earns a return on equity of 18.5%. Net debt stands at 4.7T KRW. Fundamentals as of Aug 18, 2026

Our scenario range runs from 365,586 KRW (bear case) to 622,401 KRW (bull case); at 1,055,000 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 near its 52-week high and 40% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −54%, 012450 screens richer 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
FCF DCF 667,354 KRW 1,195,254 KRW 2,624,101 KRW 74
EPV 586,016 KRW 681,539 KRW 766,449 KRW 74
Growth DCF 648,323 KRW 1,345,886 KRW 2,568,349 KRW 74
All 24 models by family
DCF Models
FCF DCF 667,354 KRW 1,195,254 KRW 2,624,101 KRW 74
Owner Earnings 130,620 KRW 231,409 KRW 439,756 KRW 73
5Y Revenue Exit 626,467 KRW 1,181,074 KRW 2,002,644 KRW 70
5Y EBITDA Exit 741,157 KRW 1,439,535 KRW 2,403,361 KRW 73
5Y P/E Exit 518,078 KRW 941,794 KRW 1,461,689 KRW 69
10Y Revenue Exit 615,171 KRW 1,185,065 KRW 2,103,919 KRW 64
10Y EBITDA Exit 718,223 KRW 1,391,223 KRW 2,558,291 KRW 65
10Y P/E Exit 560,734 KRW 990,232 KRW 1,671,783 KRW 62
Earnings-Based
Graham-Dodd 185,694 KRW 1,152,955 KRW 1,609,598 KRW 63
Lynch FV 331,464 KRW 473,520 KRW 615,576 KRW 61
PEG = 1.0 331,464 KRW 473,520 KRW 615,576 KRW 57
EPV 586,016 KRW 681,539 KRW 766,449 KRW 74
Multiples
P/E Multiple 430,101 KRW 573,468 KRW 716,834 KRW 63
P/S Multiple 348,177 KRW 464,236 KRW 580,295 KRW 58
P/B Multiple 348,177 KRW 464,236 KRW 580,295 KRW 55
EV/EBIT 811,557 KRW 1,067,170 KRW 1,322,784 KRW 66
EV/EBITDA 796,516 KRW 1,047,116 KRW 1,297,716 KRW 67
EV/Revenue 592,030 KRW 826,593 KRW 1,061,156 KRW 54
Asset-Based
NCAV (Graham) 94,122 KRW 126,123 KRW 188,244 KRW 54
Growth DCF
Growth DCF 648,323 KRW 1,345,886 KRW 2,568,349 KRW 74
Rev-Margin DCF 626,467 KRW 1,160,443 KRW 1,923,052 KRW 70
Economic Profit
Residual Income 189,813 KRW 251,509 KRW 737,966 KRW 66
ROIC Compounder 684,493 KRW 932,158 KRW 1,264,906 KRW 71
Growth Earnings
Growth-Adj P/E 474,799 KRW 678,284 KRW 881,770 KRW 67

Widest divergence: DCF Models (1,181,074 KRW) versus Asset-Based (126,123 KRW). Highest evidence: FCF DCF (74).

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Key figures & financial health

P/S ratio 2.00 TTM
Dividend yield 0.7%
Net margin 5.3% FY2025
Return on equity 18.5% TTM
Return on assets (EBIT) 3.8% avg 5y
Operating margin 11.1% TTM
More key figures
Growth
Revenue (TTM) 27.0T KRW TTM
Revenue growth (YoY) +4.9% 3y avg +55.8%
EPS growth (YoY) +285%
Balance sheet & cash flow
Free cash flow 2.1T KRW FY2025
Net debt 4.7T KRW FY2025 · ≈ 2.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 41 · Market factors (momentum, volatility) 38

Profitability 33
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 23
Disciplined investing over empire-building
Low Volatility 41
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 39
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 Aerospace Co., Ltd. engages in the development, production, and maintenance of aircraft engines worldwide. The company offers Korea space launch vehicle; satellite services, such as earth observation and satellite communication; fixed and rotary wing engines, guided missile engines, electric propulsion systems, aircraft and missile components, and …

Full company description

Hanwha Aerospace Co., Ltd. engages in the development, production, and maintenance of aircraft engines worldwide. The company offers Korea space launch vehicle; satellite services, such as earth observation and satellite communication; fixed and rotary wing engines, guided missile engines, electric propulsion systems, aircraft and missile components, and aircraft engine modules and parts; and artillery systems, armored vehicles, air defense systems, missile and ammunition, manned-unmanned teaming systems, and navigation systems. It also provides marine gas turbine engines and gensets; lithium battery systems; specialty and commercial ships; and offshore plants. In addition, the company offers maintenance, repair, and overhaul services for military engines; and assembly services for engines. Further, it provides energy storage systems; electromechanical actuators; and hydrogen fuel cell for aircrafts. The company was founded in 1977 and is headquartered in Changwon-Si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hanwha Aerospace Co Ltd reported revenue of 26.7T KRW in FY2025 versus 6.4T KRW in FY2021, a compound +42.8%/yr. Reported net income was 1.4T KRW in FY2025, compounding +53.6%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
26.7T KRW
Latest YoY
+137.6%
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.
+55.8%
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.
+38.1%
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.
+12.4%
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.
+61.2% (60.5 + 0.7)
Revenue +42.8%/yr
FY21 6.4T KRW
FY22 7.1T KRW
FY23 7.9T KRW
FY24 11.2T KRW
FY25 26.7T KRW
Net income +53.6%/yr
FY21 253B KRW
FY22 195B KRW
FY23 818B KRW
FY24 2.3T KRW
FY25 1.4T KRW

012450 screens 116% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "Hanwha Aerospace Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/012450

Peer Group

Aerospace & Defense · 229 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 39 · Bottom 25%
Fair Value upside −54% · Below median
Return on equity (TTM) 18% · Top 25%
Return on assets 4% · Below median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 11% · Above median
Revenue growth 5% · Below median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.56× · Higher than 75% of peers

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/FCF 0.0× · 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
VALUE0 · sector 0
FUTURE25 · sector 50
PAST74 · sector 38
HEALTH72 · sector 93
DIVIDEND13 · sector 16

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

Insider activity: 40/100

Values & ESG

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

Weapons Defense

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 18, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $335.71 $116.71 −65%
RTX Corporation RTX $212.08 $88.37 −58%
Airbus SE AIR €213.00 €117.01 −45%
Lockheed Martin Corporation LMT $565.89 $419.01 −26%
Howmet Aerospace Inc HWM $264.85 $50.43 −81%
General Dynamics Corporation GD $379.32 $274.32 −28%
Northrop Grumman Corporation NOC $545.57 $356.59 −35%
TransDigm Group TDG $1,235 $571.03 −54%
L3Harris Technologies, Inc LHX $262.82 $146.55 −44%
Thales S.A HO €243.70 €171.13 −30%

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Frequently asked questions

Is Hanwha Aerospace Co Ltd (012450) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of 487,447 KRW versus a price of 1,055,000 KRW, about −54% upside (overvalued).
What is the fair value of 012450?
Our model-based fair value for Hanwha Aerospace Co Ltd is 487,447 KRW (as of Aug 18, 2026), built from audited fundamentals. The current price: 1,055,000 KRW.
What is the quality score of 012450?
Hanwha Aerospace Co Ltd has a Quality Score of 39/100. 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 Aerospace Co Ltd (012450)?
Hanwha Aerospace Co Ltd reported trailing-twelve-month revenue of about 27.0T KRW (latest available figure, as of Aug 18, 2026).
What is the net profit margin of 012450?
The net profit margin of Hanwha Aerospace Co Ltd is about 6.0%, meaning it keeps roughly 6.0% of revenue as net income. Based on the latest reported figures.
Does Hanwha Aerospace Co Ltd pay a dividend?
Hanwha Aerospace Co Ltd currently shows a dividend yield of about 0.66% relative to its recent price (as of Aug 18, 2026).
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