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Hanwha Ocean Co., Ltd (042660) Fair Value & Analysis

Industrials · KR · Market cap 24.9T KRW (≈ $17.4B) · ISIN KR7042660001

What is Hanwha Ocean Co., Ltd really worth?

HO Hanwha Ocean Co., Ltd 042660 · KO
Price86,800 KRW
Fair Value42,795 KRW
Upside−50.7%
Quality46/100

Below-average quality, and trading another 103% above our fair value of 42,795 KRW.

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Strengths

Solidly profitable · 11.9% net margin
Low debt · generates free cash flow
Ranks above peers (8/12)

Risks

!Mixed Growth (revenue 5y +12.7 %/yr)
!Moderate moat 60/100
!Evidence only medium, so the estimate is less certain
!The models disagree: range 27,678 KRW to 81,340 KRW
!Weak on future: 11 out of 100
Evidence: Medium Range 27,678 KRW – 81,340 KRW

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 14 days ago

Share price +4.6% 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 (81,340 KRW). The favourable scenario is already priced in.
  • The model range is unusually wide (27,678 KRW to 81,340 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

149,900 KRW 15,296 KRW Fair Value 42,795 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range 15,296 KRW – 149,900 KRW · fair‑value band 27,678 KRW – 81,340 KRW · the 86,800 KRW price screens above the 42,795 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Hanwha Ocean Co., Ltd (042660) currently trades at 86,800 KRW, while our model-based Fair Value estimate is 42,795 KRW, implying the stock looks roughly 102.8% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of 72,872 KRW per share, and 0 of the 26 models we run sit above the 86,800 KRW price. Bear case: the Asset-Based group reads lowest at 13,494 KRW, and 26 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Hanwha Ocean Co., Ltd 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 Aug 22, 2026

Our scenario range runs from 27,678 KRW (bear case) to 81,340 KRW (bull case); at 86,800 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 44% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −51%, 042660 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 17,618 KRW 29,965 KRW 49,194 KRW 78
Growth DCF 18,220 KRW 29,466 KRW 46,073 KRW 77
Owner Earnings 23,856 KRW 39,591 KRW 64,096 KRW 75
All 26 models by family
DCF Models
FCF DCF 17,618 KRW 29,965 KRW 49,194 KRW 78
Owner Earnings 23,856 KRW 39,591 KRW 64,096 KRW 75
5Y Revenue Exit 24,577 KRW 43,638 KRW 67,792 KRW 71
5Y EBITDA Exit 28,901 KRW 51,556 KRW 77,618 KRW 74
5Y P/E Exit 39,989 KRW 71,861 KRW 104,777 KRW 70
10Y Revenue Exit 20,823 KRW 37,828 KRW 60,213 KRW 65
10Y EBITDA Exit 24,711 KRW 43,389 KRW 67,738 KRW 67
10Y P/E Exit 31,881 KRW 57,649 KRW 88,535 KRW 62
Earnings-Based
Graham-Dodd 27,653 KRW 76,901 KRW 101,060 KRW 65
Lynch FV 15,429 KRW 22,041 KRW 28,653 KRW 61
PEG = 1.0 15,429 KRW 22,041 KRW 28,653 KRW 57
EPV 29,615 KRW 35,745 KRW 41,193 KRW 74
Dividend Discount
Gordon GGM 912.62 KRW 1,992 KRW 3,352 KRW 65
DDM Multi-Stage 912.62 KRW 1,467 KRW 2,076 KRW 66
Multiples
P/E Multiple 64,049 KRW 85,399 KRW 106,749 KRW 63
P/S Multiple 51,849 KRW 69,132 KRW 86,416 KRW 58
P/B Multiple 51,849 KRW 69,132 KRW 86,416 KRW 55
EV/EBIT 44,088 KRW 60,489 KRW 76,891 KRW 66
EV/EBITDA 39,923 KRW 54,936 KRW 69,950 KRW 67
EV/Revenue 30,001 KRW 45,052 KRW 60,103 KRW 53
Asset-Based
NCAV (Graham) 10,070 KRW 13,494 KRW 20,141 KRW 54
Growth DCF
Growth DCF 18,220 KRW 29,466 KRW 46,073 KRW 77
Rev-Margin DCF 24,577 KRW 43,545 KRW 64,605 KRW 71
Economic Profit
Residual Income 28,735 KRW 40,910 KRW 239,855 KRW 64
ROIC Compounder 31,358 KRW 41,408 KRW 53,640 KRW 72
Growth Earnings
Growth-Adj P/E 51,010 KRW 72,872 KRW 94,733 KRW 67

Widest divergence: Growth Earnings (72,872 KRW) versus Dividend Discount (1,467 KRW). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/S ratio 2.67 TTM
Dividend yield 0.1%
Net margin 9.7% FY2025
Return on equity 25.7% TTM
Return on assets (EBIT) −4.7% avg 5y
Operating margin 13.7% TTM
More key figures
Growth
Revenue (TTM) 12.9T KRW TTM
Revenue growth (YoY) +2.1% 3y avg +38.0%
EPS growth (YoY) +131%
Balance sheet & cash flow
Free cash flow 598B KRW FY2025
Net debt 4.9T KRW FY2025 · ≈ 8.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 17

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 7
Price trend over the last 3–12 months (market factor)
52W Momentum 13
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.

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 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., Ltd 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. 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.
+38.0%
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.
+12.7%
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.
+11.7%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years, EBIT basis) 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.
+10.6% (10.5 + 0.1)
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 103% overvalued. Compare with General Electric Company →

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

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 46 · 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
Dividend yield (TTM) 0.1% · Bottom 25%
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

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
FUTURE11 · sector 50
PAST100 · sector 38
HEALTH81 · sector 93
DIVIDEND2 · sector 16

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

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 22, 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 Ocean Co., Ltd (042660) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of 42,795 KRW versus a price of 86,800 KRW, about −51% upside (overvalued).
What is the fair value of 042660?
Our model-based fair value for Hanwha Ocean Co., Ltd is 42,795 KRW (as of Aug 22, 2026), built from audited fundamentals. The current price: 86,800 KRW.
What is the quality score of 042660?
Hanwha Ocean Co., Ltd has a Quality Score of 46/100. 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 Ocean Co., Ltd (042660)?
Hanwha Ocean Co., Ltd reported trailing-twelve-month revenue of about 12.9T KRW (latest available figure, as of Aug 22, 2026).
What is the net profit margin of 042660?
The net profit margin of Hanwha Ocean Co., Ltd is about 11.9%, meaning it keeps roughly 11.9% of revenue as net income. Based on the latest reported figures.
Does Hanwha Ocean Co., Ltd pay a dividend?
Hanwha Ocean Co., Ltd currently shows a dividend yield of about 0.08% relative to its recent price (as of Aug 22, 2026).
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