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LG Chemicals (051910) Fair Value & Analysis

Basic Materials · KR · Market cap 20.8T KRW (≈ $14.5B) · ISIN KR7051910008

What is LG Chemicals really worth?

LC LG Chemicals 051910 · KO
Price282,000 KRW
Fair Value587,755 KRW
Upside+108.4%
Quality31/100

Below-average quality, trading 52% below our fair value of 587,755 KRW.

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Risks

!Weak Growth (revenue 5y +8.8 %/yr)
!Loss-making · -4.5% net margin
!Moderate debt · negative free cash flow
!Trails peers (2/11)
!Narrow moat 16/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 14 out of 100

For context

·0.71% dividend yield
Evidence: Medium Range 359,727 KRW – 815,783 KRW

Fair value as of: Aug 26, 2026

From 6 valuation models · updated 10 days ago

Share price +10.4% 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 (31/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (359,727 KRW). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (359,727 KRW to 815,783 KRW) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

902,345 KRW 181,235 KRW Fair Value 587,755 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 26, 2026.

How to read this chart

60‑month range 181,235 KRW – 902,345 KRW · fair‑value band 359,727 KRW – 815,783 KRW · the 282,000 KRW price screens below the 587,755 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 26, 2026.

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Analysis

LG Chemicals (051910) currently trades at 282,000 KRW, while our model-based Fair Value estimate is 587,755 KRW, implying the stock looks roughly 52.0% undervalued today. The Quality Score stands at 31/100 (below-average quality), in the Basic Materials sector. Bull case: the Asset-Based group reads highest at a median of 311,741 KRW per share, and 2 of the 6 models we run sit above the 282,000 KRW price. Bear case: the Multiples group reads lowest at 74,365 KRW, and 4 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, LG Chemicals generated revenue of 45.6T KRW at a net margin of −4.5%. Revenue declined 2.6% year over year. It earns a return on equity of −5.9%. Net debt stands at 22.9T KRW. Fundamentals as of Aug 26, 2026

Our scenario range runs from 359,727 KRW (bear case) to 815,783 KRW (bull case); at 282,000 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 36% below its 52-week high and 43% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −48% fair-value upside, at 108%, 051910 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (53,309 KRW to 752,278 KRW). Read the values as a conservative anchor, not as a price target.
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
EV/EBITDA best evidence 524,250 KRW 752,278 KRW 980,306 KRW 67
DDM Multi-Stage 30,872 KRW 53,309 KRW 70,240 KRW 64
Gordon GGM 30,872 KRW 67,398 KRW 113,400 KRW 63
All 6 models by family
Dividend Discount
Gordon GGM 30,872 KRW 67,398 KRW 113,400 KRW 63
DDM Multi-Stage 30,872 KRW 53,309 KRW 70,240 KRW 64
Multiples
EV/EBIT 15,816 KRW 74,365 KRW 132,915 KRW 59
EV/EBITDA best evidence 524,250 KRW 752,278 KRW 980,306 KRW 67
EV/Revenue 57,637 KRW 122,878 KRW 50
Asset-Based
NCAV (Graham) 232,643 KRW 311,741 KRW 465,286 KRW 54

Widest divergence: Asset-Based (311,741 KRW) versus Dividend Discount (53,309 KRW). Highest evidence: EV/EBITDA (67).

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Key figures & financial health

P/S ratio 0.60 TTM
Dividend yield 0.7%
Net margin −4.0% FY2025
Return on equity −5.9% TTM
Return on assets (EBIT) 4.8% avg 5y
Operating margin −0.4% TTM
More key figures
Growth
Revenue (TTM) 45.6T KRW TTM
Revenue growth (YoY) −2.6% 3y avg −4.0%
EPS growth (YoY) −80.3%
Balance sheet & cash flow
Free cash flow −5.6T KRW FY2025
Net debt 22.9T KRW FY2025

Figures from reported company fundamentals · as of Aug 26, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 31/100

Of which business quality 32 · Market factors (momentum, volatility) 19

Profitability 11
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 22
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 41
Disciplined investing over empire-building
Low Volatility 16
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 81
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

LG Chem, Ltd., together with its subsidiaries, operates as a chemical company in Korea, China, Asia/Oceania, the United States, Europe, and internationally.

Full company description

LG Chem, Ltd., together with its subsidiaries, operates as a chemical company in Korea, China, Asia/Oceania, the United States, Europe, and internationally. It offers ethylene-based synthetic resin products, such as ethylene vinyl acetate, high density polyethylene, low density polyethylene, linear low-density polyethylene, polyolefin elastomer, polyvinyl chloride, metallocene PE, and UNIQABLE, a recyclable all-PE packaging solution; and styrene-based synthetic resin, including acrylonitrile butadiene styrene, acrylonitrile styrene acrylate, expandable polystyrene, polystyrene, styrene acrylonitrile copolymer. The company also provides polycarbonate, a benzene-based synthetic resin product; polypropylene, a propylene-based synthetic resin; superabsorbent polymer; butadiene rubber, nitrile butadiene rubber, nitrile butadiene rubber latex, styrene butadiene latex, and solution styrene butadiene rubber; caustic soda; plasticizer; and base oil. In addition, it offers bisphenol A; acrylate, alcohol, isopropyl alcohol, methacrylate butadiene styrene, neopentyl glycol, and styrene butadiene styrene; aerogel; anode binder and carbon nanotube; KEYFLEX BT, KEYFLEX TO, LUCEL, LUCON, LUMID/LUXY, LUMILOY, LUMIPLAS, LUPOL, LUPOS, LUPOX/LUMAX, LUPOY, and LUSEP high-performance plastics; display materials; adhesives for automotive bodyshop and cathode material paintshop, cathode material, dispersant for conductive agent, flame barrier material, and separators. Further, the company provides semiconductor materials and automobiles materials; life science products for arthritis, diabetes, growth hormone, fertility, anemia, anti-adhesive agent, antimicrobials, bovine somatotropin, vaccines, and crop protection agents. LG Chem, Ltd. was founded in 1947 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

LG Chemicals reported revenue of 45.9T KRW in FY2025 versus 42.7T KRW in FY2021, a compound +1.9%/yr. Reported net income was −1.8T KRW in FY2025.

Growth Quality 20/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
45.9T KRW
Latest YoY
−5.7%
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.
+8.8%
Avg. revenue growth/yr (24Y) 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.
+10.7%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +1.9%/yr
FY21 42.7T KRW
FY22 51.9T KRW
FY23 55.2T KRW
FY24 48.7T KRW
FY25 45.9T KRW
Net income
FY21 3.7T KRW
FY22 1.8T KRW
FY23 1.3T KRW
FY24 −691B KRW
FY25 −1.8T KRW

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Cite: Fair Value Calculator (2026). "LG Chemicals Fair Value". https://www.fairvalue-calculator.com/stock/051910

Peer Group

Chemicals · 339 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 31 · Bottom 25%
Fair Value upside +108% · Top 25%
Return on assets −1% · Bottom 25%
Net margin (TTM) −5% · Bottom 25%
Operating margin (TTM) 0% · Bottom 25%
Revenue growth −3% · Below median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.65× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

EV/EBITDA 2.5× · Cheaper than 75% of peers
PEG 1.13× · Pricier than median

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
VALUE100 · sector 0
FUTURE0 · sector 22
PAST0 · sector 20
HEALTH68 · sector 94
DIVIDEND14 · sector 32

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

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 26, 2026).

Stock Price Fair Value vs Fair Value
Saudi Basic Industries Corporation 2010 49.50 SAR 18.13 SAR −63%
A. Schulman, Inc SLMNP $849.00 $203.64 −76%
Ningxia Baofeng Energy Group 600989 ¥24.49 ¥20.17 −18%
Dow Inc DOW $30.51 $21.03 −31%
Zhejiang Juhua Co 600160 ¥41.32 ¥21.62 −48%
Rongsheng Petrochemical Co 002493 ¥13.76 ¥2.39 −83%
Zangge Mining Company 000408 ¥78.04 ¥20.99 −73%
Ganfeng Lithium Group 002460 ¥52.53 ¥16.17 −69%
PT Barito Pacific Tbk, BRPT 1,855 IDR 1,584 IDR −15%
Hengli Petrochemical Co 600346 ¥18.87 ¥17.09 −9%

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Frequently asked questions

Is LG Chemicals (051910) overvalued or undervalued?
As of Aug 26, 2026, our model estimates a fair value of 587,755 KRW versus a price of 282,000 KRW, about +108% upside (undervalued).
What is the fair value of 051910?
Our model-based fair value for LG Chemicals is 587,755 KRW (as of Aug 26, 2026), built from audited fundamentals. The current price: 282,000 KRW.
What is the quality score of 051910?
LG Chemicals has a Quality Score of 31/100. 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 LG Chemicals (051910)?
LG Chemicals reported trailing-twelve-month revenue of about 45.6T KRW (latest available figure, as of Aug 26, 2026).
What is the net profit margin of 051910?
The net profit margin of LG Chemicals is about −4.5%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does LG Chemicals pay a dividend?
LG Chemicals currently shows a dividend yield of about 0.71% relative to its recent price (as of Aug 26, 2026).
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