KOSPI · 001440 · Electrical equipment · ₩001440

Taihan Cable & Solution대한전선

001440 · KOSPI · ₩001440 · 대한전선

₩20,500▼ ₩1,600 (7.24%)End-of-day · Oct 29, 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

₩2,354

vs the current price (₩20,500)

Enterprise value: ₩852B
Equity value: ₩461B
WACC: 9.5%

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 89% 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 ₩20,500, the model needs an operating margin of 9.5% every year (it uses 3.0%).
Analysts' forecasts for 2026: revenue ₩4.6T, operating profit ₩197B (4.3% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩5.1T, operating profit ₩225B (4.4% margin) (1 broker). The model starts from the last 12 months reported.
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: ₩2,354; −88.5%
Bull: ₩10,834; −47.2%

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 (3.0%).

Revenue growth

Revenue growth, year 114.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 211.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 38.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14.1% 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 (14.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3%
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 & amortisation3.5%
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).
Capital spending4.3%
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 capital15.5%
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

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 rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta1.07
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 1.11, 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)5.58%
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): ₩4.1T
Net debt (borrowings and leases − cash and deposits): ₩362B
+ Stakes and investments: ₩3.4B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩32B
Shares: 195,992,596
Share price: ₩20,500
Market cap: ₩4T

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	₩2.8T	₩3.3T	₩3.6T	₩4.7T	₩5.3T	₩5.7T	₩6T	₩6.2T
Growth	16.1%	15.7%	10.5%	14.1%	11.3%	8.5%	5.8%	3.0%
EBIT	₩80B	₩115B	₩129B	₩142B	₩158B	₩171B	₩181B	₩187B
EBIT margin	2.8%	3.5%	3.5%	3.0%	3.0%	3.0%	3.0%	3.0%
After-tax EBIT	₩58B	₩83B	₩93B	₩103B	₩115B	₩124B	₩131B	₩135B
+ Depreciation	—	—	—	₩166B	₩184B	₩200B	₩212B	₩218B
− Capital spending	₩130B	₩130B	₩161B	₩203B	₩226B	₩246B	₩260B	₩268B
− Working capital	−₩72B	−₩6.9B	₩113B	₩91B	₩83B	₩69B	₩51B	₩28B
Free cash flow	—	—	—	−₩26B	−₩10B	₩9.2B	₩32B	₩57B
Discount factor	—	—	—	0.913	0.834	0.762	0.696	0.636
Present value	—	—	—	−₩23B	−₩8.7B	₩7B	₩22B	₩37B

Terminal value ₩1.3T, worth ₩818B today: 96% 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 ₩9,601 a share)Now 2.14×	₩15,4551.61×	₩27,6222.88×	₩78,1468.14×

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%
8.5%	₩2,962	₩3,091	₩3,237	₩3,405	₩3,600
9.0%	₩2,555	₩2,653	₩2,763	₩2,887	₩3,029
9.5%	₩2,199	₩2,273	₩2,354	₩2,445	₩2,548
10.0%	₩1,884	₩1,939	₩1,999	₩2,065	₩2,138
10.5%	₩1,603	₩1,644	₩1,687	₩1,733	₩1,784

Now (TTM)

Market cap: ₩4T
Enterprise value: ₩4.4T
P/E: —
P/B: 2.1×
P/S: 1.0×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩22,900	₩11,150	₩9,157	₩13,581	₩15,390
Market cap	₩4.5T	₩2.2T	₩1.8T	₩2.7T	₩3T
P/E	53.3×	31.0×	25.4×	129.3×	108.0×
P/B	2.8×	1.5×	1.9×	3.1×	8.1×
P/S	1.2×	0.7×	0.6×	1.1×	1.5×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Taihan Cable & Solution	—	2.1×	1.0×	—	0.0%
LS Electric	61.1×	11.2×	4.2×	37.8×	0.0%
Hyosung Heavy Industries	30.5×	6.9×	2.8×	—	0.4%
HD Hyundai Electric	18.7×	7.0×	3.7×	—	0.0%
Gaon Cable	110.9×	13.4×	2.5×	57.9×	0.0%
Sanil Electric	26.6×	7.2×	8.2×	—	0.8%
Iljin Electric	19.0×	4.1×	1.2×	—	0.9%
Similar companies (median)	28.6×	7.1×	3.2×	47.8×	0.2%

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

Also known as: Taihan Cable & Solution / 대한전선 / 001440 / KRX:001440

Source: KRX statistical information