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LS Eco Energy · 229640 · Holding companies

LS Eco Energy: Model Fair Value Estimate Rises to ₩21,813 Base Case From ₩4,239

Why this report

Written after:

  • Model fair value changeModel estimate of fair value moved +415% (₩4,239 → ₩21,813 per share)Oct 22, 2026

The model's base-case fair value estimate for LS Eco Energy rose 415% to ₩21,813 per share from ₩4,239 two days earlier. The share price of ₩49,450 is still above even the new bull case, so the gap to the model remains wide, though it is much narrower than in the previous report.

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 only material event is a change in the model estimate, dated 2026-10-22. The base case moved from ₩4,239 to ₩21,813 per share, a rise of 415%. No new company filing triggered this, and no filing excerpts were provided with the event.

The model now shows a bear case of ₩10,601 and a bull case of ₩40,311, using a discount rate of 8.6%. The previous report had ₩0 bear, ₩4,239 base and ₩20,343 bull at 8.2%. The data still runs through H1 2026 (trailing twelve months), so the Q3 preliminary results are not yet in the inputs. The data does not explain why the outputs changed, apart from the higher discount rate, which would normally lower values rather than raise them.

The latest price in the data is ₩49,450 on 2026-10-20, down 18.3% over one month. Trailing earnings multiples are 34.2x and 6.0x book value.

What it changes for the thesis

The previous report (2026-10-20) described fast growth: Q3 operating profit of ₩22.2B, up 50.2% year on year but down 12.2% from Q2. It also noted that the model estimate sat far below the market price. The business facts have not changed, since there is no new filing. Trailing figures are the same: revenue of ₩1.12T, operating margin of 6.6%, free cash flow of about -₩2.6B and liabilities at 114.8% of equity. The earlier concerns about thin cash generation and debt funding still stand.

What changes is how much weight the model's low output should carry. A move this large in two days, with the same underlying data period, suggests the estimate is sensitive to its inputs and assumptions. The previous report's sharp fall to ₩4,239 now looks less like a firm signal.

What it changes for the valuation

The model's new range is a model estimate based on the assumptions shown: ₩10,601 bear, ₩21,813 base and ₩40,311 bull per share. The previous report had ₩0, ₩4,239 and ₩20,343. Against the ₩49,450 price, the base case is about 55.9% below the price, and the price is about 22.7% above the bull case. In the previous report the price of ₩57,900 was far above the bull case of ₩20,343.

The price is still higher than every case in the model, but the distance is smaller. The model still uses data through H1 2026 and does not yet reflect Q3 results. This is not a target and not a signal to buy or sell.

Closing view

The evidence points two ways. The company is growing quickly, and the model now gives a much higher range than two days ago. The market price still sits above that range, and the sharp swing in the estimate shows how sensitive it is to its assumptions. Cash generation is thin and the Q3 results are not yet in the model, so the range could shift again when the data is updated. The data does not settle whether the earlier low estimate or the new one is the better guide. Both should be read as outputs of assumptions, not as a view on where the shares should trade.

Model estimate of fair value

Bear
₩10,601
-80%
Base
₩21,813
-58%
Bull
₩40,311
-23%

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 8.6%). 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 Eco Energy: Model Fair Value Estimate Rises to ₩21,813 Base Case From ₩4,239
  2. Oct 20, 2026Update noteEarningsLS Eco Energy Q3 Preliminary Earnings: Operating Profit Up 50.2% Year on Year, Down 12.2% on the Quarter
  3. Oct 13, 2026InitiationStart of coverage (300 largest)LS Eco Energy: Sharp Share Price Rally and Rising Profits, With a Valuation Well Above the 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