KOSPI · 000500 · Electrical equipment · ₩000500

Gaon Cable가온전선

000500 · KOSPI · ₩000500 · 가온전선

₩252,500▲ ₩22,000 (9.54%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩21,641

vs the current price (₩252,500)

Enterprise value: ₩491B
Equity value: ₩644B
WACC: 12.9%

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 91% 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 ₩252,500, the model needs an operating margin of 25.4% every year (it uses 2.7%).
Analysts' forecasts for 2026: revenue ₩3.3T, operating profit ₩149B (4.5% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩4.5T, operating profit ₩261B (5.8% margin) (1 broker). The model starts from the last 12 months reported.
Today's P/E is 117.0× against a typical 31.4× 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: ₩2,839; −98.9%
Base: ₩21,641; −91.4%
Bull: ₩49,960; −80.2%

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

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (2.7%).

Revenue growth

Revenue growth, year 121.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 216.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 312.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 47.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (21.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.7%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation0.7%
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).
Capital spending0.8%
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).
Working capital13.3%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
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.
Beta1.59
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 1.88, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩2.9T
Net debt (borrowings and leases − cash and deposits): −₩153B
+ Stakes and investments: ₩110M; Associates, long-term financial assets and deposits (book value)
Shares: 29,777,607
Share price: ₩252,500
Market cap: ₩7.5T

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩1.5T	₩1.7T	₩2.5T	₩3.5T	₩4.1T	₩4.6T	₩5T	₩5.1T
Growth	5.8%	15.2%	47.4%	21.6%	16.9%	12.3%	7.6%	3.0%
EBIT	₩44B	₩45B	₩79B	₩95B	₩111B	₩125B	₩134B	₩138B
EBIT margin	2.9%	2.6%	3.1%	2.7%	2.7%	2.7%	2.7%	2.7%
After-tax EBIT	₩32B	₩33B	₩57B	₩69B	₩81B	₩90B	₩97B	₩100B
+ Depreciation	₩8.3B	₩10B	₩23B	₩25B	₩29B	₩32B	₩35B	₩36B
− Capital spending	₩10B	₩11B	₩25B	₩28B	₩33B	₩37B	₩40B	₩41B
− Working capital	−₩7B	₩49B	₩139B	₩83B	₩79B	₩67B	₩47B	₩20B
Free cash flow	₩37B	−₩17B	−₩83B	−₩18B	−₩2.7B	₩19B	₩46B	₩75B
Discount factor	—	—	—	0.886	0.785	0.696	0.617	0.546
Present value	—	—	—	−₩16B	−₩2.1B	₩13B	₩28B	₩41B

Terminal value ₩781B, worth ₩427B today: 87% 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:

	Low	Typical	High
Price / book (book value ₩17,807 a share)Now 14.2×	₩16,9660.95×	₩26,7561.50×	₩142,0107.97×
Price / earnings (last 12 months: ₩2,159 a share)Now 117.0×	₩40,56818.8×	₩67,76031.4×	₩108,69350.4×
P/E on run-rate earnings (preliminary Q3 2026 × 4: ₩4,028 a share)Now 62.7×	₩75,69818.8×	₩126,43631.4×	₩202,81450.4×

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%
11.9%	₩23,466	₩23,683	₩23,916	₩24,167	₩24,439
12.4%	₩22,368	₩22,539	₩22,721	₩22,914	₩23,121
12.9%	₩21,369	₩21,502	₩21,641	₩21,788	₩21,943
13.4%	₩20,456	₩20,557	₩20,661	₩20,770	₩20,883
13.9%	₩19,619	₩19,693	₩19,769	₩19,846	₩19,924

Now (TTM)

Market cap: ₩7.5T
Enterprise value: ₩7.4T
P/E: 117.0×
P/B: 14.2×
P/S: 2.6×
EV/EBITDA: 61.1×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩45,788	₩30,118	₩11,780	₩10,361	₩10,916
Market cap	₩1.4T	₩897B	₩351B	₩309B	₩325B
P/E	26.5×	35.4×	19.6×	29.5×	55.5×
P/B	2.8×	2.0×	1.1×	1.0×	1.2×
P/S	0.5×	0.5×	0.2×	0.2×	0.3×
EV/EBITDA	15.7×	18.3×	7.9×	—	—
Dividend yield	0.1%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Gaon Cable	117.0×	14.2×	2.6×	61.1×	0.0%
LS Electric	63.5×	11.6×	4.3×	39.3×	0.0%
Hyosung Heavy Industries	31.8×	7.2×	2.9×	—	0.4%
HD Hyundai Electric	19.6×	7.4×	3.8×	—	0.0%
Sanil Electric	27.9×	7.6×	8.5×	—	0.8%
Taihan Cable & Solution	—	2.3×	1.0×	—	0.0%
Iljin Electric	20.0×	4.3×	1.3×	—	0.8%
Similar companies (median)	27.9×	7.3×	3.4×	39.3×	0.2%

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

Also known as: Gaon Cable / 가온전선 / 000500 / KRX:000500

Source: KRX statistical information