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LX International

001120 · KOSPI · ₩001120 · LX인터내셔널

₩40,250▼ ₩1,150 (2.78%)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

₩179,061

vs the current price (₩40,250)

Enterprise value
₩8.6T
Equity value
₩6.9T
WACC
5.6%

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 345% 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 ₩40,250, the model needs an operating margin of 1.4% every year (it uses 3.0%).
  • Or revenue growth −22.0 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 13.0× against a typical 5.7× 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
—
Base
₩179,061
+344.9%
Bull
₩580,866
+1,343.1%

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 (3.0%).

Revenue growth

  • -3.8%

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

    Default: the last 3 years' revenue growth (-3.8% a year, annual reports), fading to 3% by year 5.

  • -2.1%

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

    Default: the last 3 years' revenue growth (-3.8% a year, annual reports), fading to 3% by year 5.

  • -0.4%

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

    Default: the last 3 years' revenue growth (-3.8% a year, annual reports), fading to 3% by year 5.

  • 1.3%

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

    Default: the last 3 years' revenue growth (-3.8% 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 (-3.8% a year, annual reports), fading to 3% by year 5.

Business

  • 3%

    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.

  • 1.5%

    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).

  • 1.9%

    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).

  • 4.5%

    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 0.05, 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)
₩18T
Net debt (borrowings and leases − cash and deposits)
₩1.9T
+ Stakes and investments
₩997B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩805B
Shares
38,760,000
Share price
₩40,250
Market cap
₩1.6T

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₩15T₩17T₩17T₩17T₩17T₩17T₩17T₩17T
Growth−22.6%14.6%0.4%−3.8%−2.1%−0.4%1.3%3.0%
EBIT₩433B₩489B₩292B₩514B₩503B₩501B₩508B₩523B
EBIT margin3.0%2.9%1.7%3.0%3.0%3.0%3.0%3.0%
After-tax EBIT₩314B₩355B₩212B₩373B₩365B₩363B₩368B₩379B
+ Depreciation———₩257B₩252B₩251B₩254B₩262B
− Capital spending₩176B₩135B₩616B₩326B₩319B₩318B₩322B₩331B
− Working capital₩103B₩125B−₩173B−₩30B−₩16B−₩3B₩9.8B₩23B
Free cash flow———₩335B₩314B₩300B₩291B₩287B
Discount factor———0.9470.8970.8500.8050.762
Present value———₩317B₩282B₩255B₩234B₩219B

Terminal value ₩9.6T, worth ₩7.3T 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 ₩76,688 a share)Now 0.52×₩31,3810.41×₩38,6770.50×₩54,9610.72×
Price / earnings (last 12 months: ₩3,088 a share)Now 13.0×₩7,4352.41×₩17,7175.74×₩43,30014.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩7,036 a share)Now 5.72×₩16,9402.41×₩40,3665.74×₩98,65214.0×

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%
4.6%₩191,832₩223,035₩266,324₩330,435₩435,200
5.1%₩162,521₩185,356₩215,591₩257,537₩319,660
5.6%₩139,630₩156,936₩179,061₩208,356₩248,999
6.1%₩121,260₩134,738₩151,505₩172,942₩201,325
6.6%₩106,195₩116,924₩129,981₩146,226₩166,993

Now (TTM)

Market cap
₩1.6T
Enterprise value
₩3T
P/E
13.0×
P/B
0.5×
P/S
0.1×
EV/EBITDA
—
Dividend yield
5.0%

Over time (at each year end)

20252024202320222021
Price₩32,500₩27,050₩29,400₩33,950₩26,450
Market cap₩1.3T₩1T₩1.1T₩1.3T₩1T
P/E8.9×6.0×9.7×2.6×2.9×
P/B0.5×0.4×0.5×0.6×0.6×
P/S0.1×0.1×0.1×0.1×0.1×
EV/EBITDA—————
Dividend yield6.2%7.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
LX International13.0×0.5×0.1×—5.0%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.6×1.3×0.3×—3.7%
ISC45.3×6.0×12.6×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies18.9×1.6×5.1×—4.2%
Shinsegae14.4×0.5×0.3×—2.0%
Similar companies (median)16.6×1.0×1.0×—2.6%

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

Also known as: LX International / LX인터내셔널 / 001120 / KRX:001120

Source: KRX statistical information