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KT&G Corp (033780) Fair Value & Analysis

Consumer Defensive · KR · Market cap 17.9T KRW (≈ $12.5B) · ISIN KR7033780008

What is KT&G Corp really worth?

KG KT&G Corp 033780 · KO
Price172,500 KRW
Fair Value110,656 KRW
Upside−35.9%
Quality63/100

A solid business, but trading 56% above our fair value of 110,656 KRW.

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Strengths

Solidly profitable · 17.9% net margin

Risks

!Expensive Growth (revenue 5y +4.4 %/yr)
!Low debt · negative free cash flow
!Mixed vs. peers (4/10)
!Moderate moat 64/100
!Evidence only medium, so the estimate is less certain
!The models disagree: range 84,910 KRW to 232,835 KRW

For context

·3.48% dividend yield
Evidence: Medium Range 84,910 KRW – 232,835 KRW

Fair value as of: Aug 20, 2026

From 15 valuation models · updated 16 days ago

Share price −1.8% over the past month.

What runs behind every stock

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

What matters now

  • The model range is unusually wide (84,910 KRW to 232,835 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

189,000 KRW 61,763 KRW Fair Value 110,656 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range 61,763 KRW – 189,000 KRW · fair‑value band 84,910 KRW – 232,835 KRW · the 172,500 KRW price screens above the 110,656 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

KT&G Corp (033780) currently trades at 172,500 KRW, while our model-based Fair Value estimate is 110,656 KRW, implying the stock looks roughly 55.9% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Consumer Defensive sector. Bull case: the Growth Earnings group reads highest at a median of 188,041 KRW per share, and 6 of the 15 models we run sit above the 172,500 KRW price. Bear case: the Earnings-Based group reads lowest at 56,703 KRW, and 9 of the 15 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, KT&G Corp generated revenue of 6.8T KRW at a net margin of 17.9%. Revenue grew 14.3% year over year. It earns a return on equity of 13.2%. Net debt stands at 872B KRW. Fundamentals as of Aug 20, 2026

Our scenario range runs from 84,910 KRW (bear case) to 232,835 KRW (bull case); at 172,500 KRW, the current price sits within 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 9% below its 52-week high and 50% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 1% fair-value upside, at −36%, 033780 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
Owner Earnings 77,637 KRW 120,343 KRW 186,819 KRW 75
EPV 88,271 KRW 104,048 KRW 118,071 KRW 74
ROIC Compounder 88,271 KRW 111,428 KRW 141,594 KRW 72
All 15 models by family
DCF Models
Owner Earnings 77,637 KRW 120,343 KRW 186,819 KRW 75
Earnings-Based
Graham-Dodd 71,404 KRW 198,158 KRW 260,352 KRW 65
Lynch FV 39,692 KRW 56,703 KRW 73,714 KRW 61
PEG = 1.0 39,692 KRW 56,703 KRW 73,714 KRW 57
EPV 88,271 KRW 104,048 KRW 118,071 KRW 74
Multiples
P/E Multiple 165,384 KRW 220,513 KRW 275,641 KRW 63
P/S Multiple 76,058 KRW 101,411 KRW 126,764 KRW 58
P/B Multiple 133,883 KRW 178,510 KRW 223,138 KRW 55
EV/EBIT 163,900 KRW 218,910 KRW 273,920 KRW 66
EV/EBITDA 152,558 KRW 203,786 KRW 255,015 KRW 67
EV/Revenue 65,422 KRW 93,944 KRW 122,466 KRW 53
Asset-Based
NCAV (Graham) 44,695 KRW 59,891 KRW 89,389 KRW 54
Economic Profit
Residual Income 83,568 KRW 99,848 KRW 208,583 KRW 71
ROIC Compounder 88,271 KRW 111,428 KRW 141,594 KRW 72
Growth Earnings
Growth-Adj P/E 131,628 KRW 188,041 KRW 244,453 KRW 67

Widest divergence: Growth Earnings (188,041 KRW) versus Earnings-Based (56,703 KRW). Highest evidence: Owner Earnings (75).

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Key figures & financial health

P/S ratio 2.64 TTM
Dividend yield 3.5%
Net margin 16.6% FY2025
Return on equity 13.2% TTM
Return on assets (EBIT) 9.8% avg 5y
Operating margin 21.4% TTM
More key figures
Growth
Revenue (TTM) 6.8T KRW TTM
Revenue growth (YoY) +14.3% 3y avg +4.0%
EPS growth (YoY) +54.7%
Balance sheet & cash flow
Free cash flow −97.4B KRW FY2025
Net debt 872B KRW FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 58 · Market factors (momentum, volatility) 65

Profitability 48
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 100
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

KT&G Corporation, together with its subsidiaries, engages in the production, distribution, and sale of tobacco products in South Korea, Europe, and internationally. It provides reconstituent tobacco sheets, red ginseng, red ginseng products, other health foods, food and beverage products, health functional food products, and cosmetic and related products.

Full company description

KT&G Corporation, together with its subsidiaries, engages in the production, distribution, and sale of tobacco products in South Korea, Europe, and internationally. It provides reconstituent tobacco sheets, red ginseng, red ginseng products, other health foods, food and beverage products, health functional food products, and cosmetic and related products. The company also offers leaf tobacco cultivation support services; and develops, manufactures, and distributes drugs, bio-pharmaceuticals, over-the-counter medicines, and medical supplies and equipment. In addition, it engages in the trading, real estate, leasing, and housing businesses. Further, the company engages in hotel development and management activities. The company was formerly known as Korea Tobacco and Ginseng Corporation and changed its name to KT&G Corporation in December 2002. KT&G Corporation was founded in 1987 and is headquartered in Daejeon, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

KT&G Corp reported revenue of 6.6T KRW in FY2025 versus 5.2T KRW in FY2021, a compound +5.9%/yr. Reported net income was 1.1T KRW in FY2025, compounding +2.8%/yr from FY2021.

Growth Quality 45/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
6.6T KRW
Latest YoY
+11.4%
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.
+4.0%
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.
+4.4%
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.
+5.2%
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.
+8.3% (4.8 + 3.5)
Revenue +5.9%/yr
FY21 5.2T KRW
FY22 5.9T KRW
FY23 5.9T KRW
FY24 5.9T KRW
FY25 6.6T KRW
Net income +2.8%/yr
FY21 977B KRW
FY22 1.0T KRW
FY23 903B KRW
FY24 1.2T KRW
FY25 1.1T KRW

033780 screens 56% overvalued. Compare with Philip Morris International Inc →

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Cite: Fair Value Calculator (2026). "KT&G Corp Fair Value". https://www.fairvalue-calculator.com/stock/033780

Peer Group

Tobacco · 36 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 63 · Below median
Fair Value upside −36% · Below median
Return on equity (TTM) 13% · Above median
Return on assets 6% · Below median
Net margin (TTM) 18% · Above median
Operating margin (TTM) 21% · Above median
Revenue growth 14% · Above median
Dividend yield (TTM) 3.5% · Below median
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Tobacco median · lower = cheaper

PEG 3.72× · Pricier 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 38
FUTURE72 · sector 25
PAST53 · sector 51
HEALTH94 · sector 97
DIVIDEND70 · sector 78

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

Values & ESG

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

Tobacco

Similar stocks

10 more Tobacco stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Philip Morris International Inc PM $190.48 $103.71 −46%
British American Tobacco p.l.c. BTI $56.13 $61.07 +9%
Altria Group MO $68.65 $81.81 +19%
ITC Limited 500875 ₹279.50 ₹212.74 −24%
PT Hanjaya Mandala Sampoerna Tbk, HMSP 745.00 IDR 1,041 IDR +40%
Smoore International Holdings 6969 HK$9.24 HK$4.19 −55%
Godfrey Phillips India Limited GODFRYPHLP ₹2,160 ₹1,194 −45%
PT Gudang Garam Tbk, GGRM 20,675 IDR 16,988 IDR −18%
TABAK TABAK 19,100 CZK 23,215 CZK +22%
China Tobacco International (HK) Company 6055 HK$23.86 HK$24.09 +1%

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Frequently asked questions

Is KT&G Corp (033780) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of 110,656 KRW versus a price of 172,500 KRW, about −36% upside (overvalued).
What is the fair value of 033780?
Our model-based fair value for KT&G Corp is 110,656 KRW (as of Aug 20, 2026), built from audited fundamentals. The current price: 172,500 KRW.
What is the quality score of 033780?
KT&G Corp has a Quality Score of 63/100. 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 KT&G Corp (033780)?
KT&G Corp reported trailing-twelve-month revenue of about 6.8T KRW (latest available figure, as of Aug 20, 2026).
What is the net profit margin of 033780?
The net profit margin of KT&G Corp is about 17.9%, meaning it keeps roughly 17.9% of revenue as net income. Based on the latest reported figures.
Does KT&G Corp pay a dividend?
KT&G Corp currently shows a dividend yield of about 3.48% relative to its recent price (as of Aug 20, 2026).
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