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JONBUR Research · Update note

LS Electric · 010120 · Electrical equipment

LS Electric: Model Fair Value Estimate Rises to ₩28,422 per Share from ₩9,113

Why this report

Written after:

  • Model fair value changeModel estimate of fair value moved +212% (₩9,113 → ₩28,422 per share)Oct 22, 2026

Our model estimate of fair value for LS Electric rose 212% to a base of ₩28,422 per share from ₩9,113 on October 22, 2026. The estimate is still far below the share price of ₩155,200, so it changes the model picture but not the view that the market is pricing in much more than the trailing figures.

Written Oct 21, 2026 · Data as of Oct 20, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

The model's base estimate moved from ₩9,113 to ₩28,422 per share, a rise of 212%. The range is now ₩14,243 (bear), ₩28,422 (base) and ₩51,114 (bull). The previous range was ₩0, ₩9,113 and ₩25,969. The method (DCF), the 9.2% discount rate and the trailing period to H1 2026 are unchanged.

No filings were provided with this event, so the data does not say what drove the change. The inputs shown, trailing figures to H1 2026, appear the same as before, so the reason for the jump is not available here. The bear case is no longer zero.

The share price was ₩155,200 on October 20, down 26.6% over one month and up 142.9% over one year.

What it changes for the thesis

The previous report, published October 21, covered preliminary Q3 2026 operating profit of ₩233.5B, up 131.7%, on revenue of ₩1.88T. It saw clear operating improvement but a much more demanding valuation, and it noted that negative free cash flow of -₩186.8B remained an open concern.

This model change does not alter that operating story. The trailing figures are unchanged: operating margin of 9.4%, ROE of 19.6% and free cash flow of -₩186.8B. Cash flow, borrowings and margin sustainability are still not addressed by new information.

What it changes for the valuation

The model is a model estimate based on the assumptions shown (DCF, 9.2% discount rate, trailing figures to H1 2026). The base is now ₩28,422 against ₩9,113 before, and the bull case of ₩51,114 is about double the earlier ₩25,969. The bear case rose from ₩0 to ₩14,243, which suggests the model is somewhat less fragile than before, though the range is still wide.

Even the bull case is about 67% below the share price of ₩155,200, and the base is about 81.7% below it. Multiples are unchanged at P/E 59.9x, P/B 10.9x, P/S 4.1x and EV/EBITDA 37.0x, above the peers with P/E data, HD Hyundai Electric (20.7x) and Hyosung Heavy Industries (30.2x). The model does not yet include the Q3 results, and the reason for its revision is not available.

Closing view

The higher model estimate narrows the distance between the model and the market somewhat, but a large gap remains. The change comes without new filed information, so it reflects model mechanics rather than a new fact about the business. The strong Q3 profit growth supports the operating story, while cash flow and the stretched multiples remain unresolved. The evidence is still mixed, and the model estimate is not a price target or a signal.

Model estimate of fair value

Bear
₩14,243
-91%
Base
₩28,422
-81%
Bull
₩51,114
-67%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.2%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 21, 2026Update noteModel fair value changeLS Electric: Model Fair Value Estimate Rises to ₩28,422 per Share from ₩9,113
  2. Oct 21, 2026Update noteEarningsLS Electric Q3 2026 Preliminary Earnings: Operating Profit More Than Doubles Year on Year
  3. Oct 13, 2026InitiationLS Electric: Earnings Growth Continues While Share Price Falls Sharply Over One Year

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information