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Kyungbang

000050 · KOSPI · ₩000050 · 경방

₩7,510▼ ₩200 (2.59%)End-of-day · Oct 26, 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

₩32,930

vs the current price (₩7,510)

Enterprise value
₩874B
Equity value
₩903B
WACC
6.0%

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 is 338% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

  • To match today's price of ₩7,510, the model needs an operating margin of 1.8% every year (it uses 10.2%).
  • Margins ranged from 4.1% to 14.0% 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.
  • Today's P/E is 3.9× against a typical 8.0× over the last 10 years.

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
₩20,367
+171.2%
Base
₩32,930
+338.5%
Bull
₩56,507
+652.4%

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 (10.2%).

Revenue growth

  • 2%

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

    Default: the last 3 years' revenue growth (2% a year, annual reports), fading to 3% by year 5.

  • 2.2%

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

    Default: the last 3 years' revenue growth (2% a year, annual reports), fading to 3% by year 5.

  • 2.5%

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

    Default: the last 3 years' revenue growth (2% a year, annual reports), fading to 3% by year 5.

  • 2.7%

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

    Default: the last 3 years' revenue growth (2% 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 (2% a year, annual reports), fading to 3% by year 5.

Business

  • 10.2%

    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.

  • 9.2%

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

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

  • 2.4%

    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).

  • 9.8%

    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.

  • 4.03%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 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 0.16, 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.

  • 5.53%

    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)
₩443B
Net debt (borrowings and leases − cash and deposits)
₩134B
+ Stakes and investments
₩163B
Associates, long-term financial assets and deposits (book value)
Shares
27,415,270
Share price
₩7,510
Market cap
₩206B

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₩394B₩397B₩412B₩452B₩462B₩474B₩486B₩501B
Growth1.1%1.0%3.8%2.0%2.2%2.5%2.7%3.0%
EBIT₩16B₩33B₩46B₩46B₩47B₩48B₩50B₩51B
EBIT margin4.1%8.4%11.2%10.2%10.2%10.2%10.2%10.2%
After-tax EBIT₩12B₩24B₩33B₩33B₩34B₩35B₩36B₩37B
+ Depreciation₩40B₩37B₩32B₩42B₩43B₩44B₩45B₩46B
− Capital spending₩5.3B₩15B₩7.8B₩11B₩11B₩11B₩12B₩12B
− Working capital−₩21B₩14B−₩1.8B₩869M₩975M₩1.1B₩1.3B₩1.4B
Free cash flow₩67B₩32B₩60B₩63B₩65B₩66B₩68B₩70B
Discount factor———0.9430.8900.8390.7910.747
Present value———₩60B₩57B₩55B₩54B₩52B

Terminal value ₩798B, worth ₩596B today: 68% 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 ₩30,108 a share)Now 0.25×₩7,0740.23×₩9,5320.32×₩14,5970.48×
Price / earnings (last 12 months: ₩1,909 a share)Now 3.93×₩7,5103.93×₩15,2738.00×₩83,24343.6×

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%
5.0%₩34,400₩37,581₩41,813₩47,720₩56,548
5.5%₩31,243₩33,655₩36,751₩40,869₩46,618
6.0%₩28,701₩30,582₩32,930₩35,943₩39,950
6.5%₩26,607₩28,108₩29,939₩32,224₩35,155
7.0%₩24,851₩26,069₩27,530₩29,312₩31,535

Now (TTM)

Market cap
₩206B
Enterprise value
₩340B
P/E
3.9×
P/B
0.2×
P/S
0.5×
EV/EBITDA
3.7×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩9,360₩6,350₩8,840₩10,800₩13,750
Market cap₩257B₩174B₩242B₩296B₩377B
P/E5.4×7.4×—67.1×16.9×
P/B0.3×0.2×0.3×0.4×0.5×
P/S0.6×0.4×0.6×0.8×1.0×
EV/EBITDA5.0×5.2×7.8×7.2×6.5×
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Kyungbang3.9×0.2×0.5×3.7×0.0%
Samsung C&T17.0×0.4×1.1×—1.0%
POSCO International10.5×1.2×0.3×—3.7%
Youngone5.1×0.7×0.7×—3.1%
ISC38.4×5.1×10.7×—0.6%
Dong SUH Companies18.8×1.6×5.1×—4.2%
SK Gas7.3×0.6×0.3×—3.6%
Similar companies (median)13.7×1.0×0.9×—3.4%

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

Also known as: Kyungbang / 경방 / 000050 / KRX:000050

Source: KRX statistical information