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KR Motors

000040 · KOSPI · ₩000040 · KR모터스

₩1,117▼ ₩15 (1.33%)End-of-day · Oct 28, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

With these assumptions the model gives no positive value.

Enterprise value
−₩89B
Equity value
−₩134B
WACC
5.0%

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

Why the model and the price differ

The model gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩1,117, the model needs an operating margin of 10.2% every year (it uses −13.8%).
  • Margins ranged from −30.8% to −2.0% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
  • 100% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
—
Base
—
Bull
—

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (−13.8%).

Revenue growth

  • -10%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-50.9% a year, annual reports), fading to 3% by year 5.

  • -6.7%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-50.9% a year, annual reports), fading to 3% by year 5.

  • -3.5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-50.9% a year, annual reports), fading to 3% by year 5.

  • -0.2%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-50.9% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-50.9% a year, annual reports), fading to 3% by year 5.

Business

  • -13.8%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 0.5%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 0.6%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • -10%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta -0.5, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.61%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩35B
Net debt (borrowings and leases − cash and deposits)
₩53B
+ Stakes and investments
₩8.5B
Associates, long-term financial assets and deposits (book value)
Shares
19,675,036
Share price
₩1,117
Market cap
₩22B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩78B₩16B₩14B₩32B₩30B₩29B₩29B₩29B
Growth−33.0%−79.6%−13.8%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩18B−₩4.9B−₩2.9B−₩4.4B−₩4.1B−₩3.9B−₩3.9B−₩4.1B
EBIT margin−22.8%−30.8%−20.9%−13.8%−13.8%−13.8%−13.8%−13.8%
After-tax EBIT−₩13B−₩3.6B−₩2.1B−₩3.2B−₩3B−₩2.9B−₩2.9B−₩2.9B
+ Depreciation———₩159M₩148M₩143M₩143M₩147M
− Capital spending₩1.1B₩48M₩8.7M₩190M₩178M₩171M₩171M₩176M
− Working capital−₩11B₩41B−₩13B₩352M₩213M₩104M₩5.7M−₩86M
Free cash flow———−₩3.6B−₩3.2B−₩3B−₩2.9B−₩2.9B
Discount factor———0.9520.9060.8630.8210.782
Present value———−₩3.4B−₩2.9B−₩2.6B−₩2.4B−₩2.3B

Terminal value −₩97B, worth −₩76B today: 85% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩3,687 a share)Now 0.30×₩3,4630.94×₩18,1234.92×₩23,3646.34×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
4.0%—————
4.5%—————
5.0%—————
5.5%—————
6.0%—————

Now (TTM)

Market cap
₩22B
Enterprise value
₩74B
P/E
0.8×
P/B
0.3×
P/S
0.6×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,255₩2,270₩5,166₩8,080₩12,481
Market cap₩44B₩45B₩102B₩159B₩246B
P/E—————
P/B1.0×1.4×4.9×4.8×6.6×
P/S3.2×2.8×1.3×1.4×1.8×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
KR Motors0.8×0.3×0.6×—0.0%
Hyundai-Rotem11.2×2.7×1.4×—0.7%
Iljin Hysolus—1.2×3.7×—0.0%
INNOXCorporation2.3×0.3×1.0×—0.0%
Alton290.0×0.9×0.6×—0.0%
Similar companies (median)11.2×1.1×1.2×—0.0%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: KR Motors / KR모터스 / 000040 / KRX:000040

Source: KRX statistical information