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People & Technology · 137400 · Machinery

People & Technology: Model Fair Value Estimate Rises to ₩52,652 Per Share, Mainly on a Lower Discount Rate

Why this report

Written after:

  • Model fair value changeModel estimate of fair value moved +87% (₩28,121 → ₩52,652 per share)Oct 22, 2026

The model estimate of fair value for People & Technology rose 87% to a base of ₩52,652 per share from ₩28,121 in the initiation report. No new company filing drove this; the data shows the change comes from the model's inputs, so the business picture is unchanged.

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

On 2026-10-22 the model estimate moved from ₩28,121 to ₩52,652 per share in the base case, a rise of 87%. The bear case moved from ₩11,605 to ₩27,262 and the bull case from ₩55,383 to ₩95,781.

The financial basis is the same as before: trailing figures to H1 2026, with revenue of ₩698.7B, operating income of ₩71.2B and a trailing operating margin of 10.2%. The one visible change in the assumptions is the discount rate, which is now 7.4% against 8% in the previous report. The data does not show how much of the move comes from the rate and how much from other inputs. No new filings or news items are attached to this event.

The share price closed at ₩30,400 on 2026-10-20, up from ₩29,750 at the previous report.

What it changes for the thesis

The previous report described a business that peaked in 2024 and has since normalized, with revenue down 28.0% in 2025, a trailing margin of 10.2% and return on equity of 12.3%. None of that has changed. The latest data still shows negative free cash flow of ₩29.2B, liabilities at 170% of equity, borrowings of ₩471.9B against cash of ₩216.5B, and foreign ownership at 3.5%, down from 6.5% 60 days ago.

The buybacks and supply contract filings noted earlier remain the positives. The missing details on contract size, order backlog and guidance also remain, so the durability of revenue is still not visible. A higher model estimate does not by itself improve any of these underlying points.

What it changes for the valuation

The model (5-year discounted cash flow, now at a 7.4% rate) gives a base estimate of ₩52,652 per share, with a bear case of ₩27,262 and a bull case of ₩95,781. The previous report had ₩28,121 base, ₩11,605 bear and ₩55,383 bull. This is a model estimate based on the assumptions shown, not a target.

Against the ₩30,400 close, the base case is now about 73.2% above the price, where before it was 5.5% below. Even the bear case of ₩27,262 is only 10.3% below the price. The range remains very wide, from ₩27,262 to ₩95,781, which shows how sensitive the result is to the inputs. A change of this size from a modest rate shift suggests the estimate is fragile.

Market multiples are little changed: P/E 8.6, P/B 1.0, P/S 1.0 and a dividend yield of 0.7%. Enterprise value is ₩950.0B. EV/EBITDA is not available.

Closing view

The jump in the model estimate reflects a change in assumptions rather than new evidence about the business. Earnings, cash flow, leverage and foreign ownership are the same as in the initiation report, and the earlier concerns about negative free cash flow and limited visibility on contracts still apply. The higher estimate widens the gap to the share price, but given how much the result moves with the discount rate and the width of the range, it should be read as a sign of model sensitivity more than as a confirmed change in the company's worth.

Model estimate of fair value

Bear
₩27,262
-2%
Base
₩52,652
+89%
Bull
₩95,781
+244%

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 7.4%). 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 changePeople & Technology: Model Fair Value Estimate Rises to ₩52,652 Per Share, Mainly on a Lower Discount Rate
  2. Oct 19, 2026InitiationStart of coverage (reader request)People & Technology: Revenue Below 2024 Peak, Shares Near Book Value and Model Estimate

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