DY Power: Model Fair Value Estimate Rises 56% to ₩39,154 per Share

What happened

On 2026-10-22 the model estimate of fair value moved from ₩25,136 to ₩39,154 per share in the base case, a rise of 56%. No company filings, shareholder changes or news items accompany this move, and no smaller recent events are listed. The data we have does not explain what drove the revision.

The model is still a 5-year discounted cash flow at a 7.5% rate, based on trailing figures to H1 2026. The method, discount rate and period are the same as in the previous report, so the change does not come from a different approach as far as the data shows. The trailing figures in the current data are revenue of ₩400.6B, operating income of ₩35.1B, net income of ₩32.0B and free cash flow of ₩33.9B. We do not have the earlier inputs to compare, so we cannot say which input changed.

What it changes for the thesis

The previous report, published on 2026-10-20, described a profitable, lightly indebted company at low multiples, with flat revenue over several years and no re-rating despite persistently low multiples. Nothing in the data changes that picture. The business facts are the same: operating margin of 8.8%, ROE of 10.2%, liabilities at 25.6% of equity, and annual revenue down from ₩437.2B in 2021 to ₩382.8B in 2025.

A higher model estimate does not address the report's main caution, which is the lack of revenue growth. It also does not show that the market is changing its view of the shares.

What it changes for the valuation

The updated model estimates, based on the assumptions shown, are ₩25,284 (bear), ₩39,154 (base) and ₩63,229 (bull) per share. The previous report had ₩13,613, ₩25,136 and ₩45,222. All three cases moved up, and the new bear case is close to the previous base case.

The latest close was ₩10,630 on 2026-10-20, a market cap of about ₩117.4B. Trailing P/E is 3.7, P/B 0.3 and the dividend yield 4.7%. The price is below the new bear case, as it was below the old one. The bull-to-bear spread is still wide, so these figures are a model estimate based on the assumptions shown, not a target or a trading signal. The 56% revision shows how much the output depends on the inputs.

Closing view

The only material event is a change in the model output, not in the company. Fundamentals, filings and flows give no new information, and the cause of the revision is not visible in the data. The wider gap between the share price and the model range is therefore a statement about the model, not evidence that the business has improved. The earlier mixed picture still holds: profitable, low debt and low multiples, set against flat revenue and a market that has not re-rated the shares. Until the inputs behind the revision are clear, the new range should be read with caution.

Model estimate of fair value

Bear

₩25,284

+139%

Base

₩39,154

+270%

Bull

₩63,229

+497%

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 7.5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Half-year report (Jun 2026)Aug 13, 2026
• Change in largest shareholder's holdingsJun 18, 2026
• Disclosure of Corporate Governance ReportJun 1, 2026
• Quarterly report (Mar 2026)May 14, 2026
• Change in largest shareholder's holdingsApr 27, 2026
• 5%+ holding reportApr 27, 2026
• Insider shareholding reportApr 27, 2026
• Change in largest shareholder's holdingsMar 27, 2026
• 5%+ holding reportMar 27, 2026
• Change in largest shareholder's holdingsMar 25, 2026
• 5%+ holding reportMar 25, 2026
• Insider shareholding reportMar 25, 2026
• Daily prices up to 2026-10-20
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 21, 2026Update noteModel fair value changeDY Power: Model Fair Value Estimate Rises 56% to ₩39,154 per Share
2. Oct 20, 2026InitiationStart of coverage (reader request)DY Power: Low Multiples and Steady Profits, but Flat Revenue and a Share Price Down 12.0% Over a Year