KOSPI · 002690 · Steel & Materials · ₩002690

Dong IL Steel MFG동일제강

002690 · KOSPI · ₩002690 · 동일제강

₩1,211▼ ₩13 (1.06%)End-of-day · Oct 27, 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

₩1,158

vs the current price (₩1,211)

Enterprise value: −₩34B
Equity value: ₩24B
WACC: 7.3%

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

Bear / Base / Bull

Bear: ₩772; −36.2%
Base: ₩1,158; −4.4%
Bull: ₩2,276; +87.9%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (−1.2%).

Revenue growth

Revenue growth, year 1-9.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-9.2% 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 (-9.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-1.2%
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.
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%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so a typical level.
Capital spending4%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: not in the statements, so a typical level.
Working capital33.7%
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 rate4.03%
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.
Beta0.6
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 0.17, 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)5.53%
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): ₩149B
Net debt (borrowings and leases − cash and deposits): −₩58B
+ Stakes and investments: ₩30M; Associates, long-term financial assets and deposits (book value)
Shares: 20,300,360
Share price: ₩1,211
Market cap: ₩25B

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	₩181B	₩151B	₩147B	₩135B	₩127B	₩123B	₩123B	₩126B
Growth	−8.1%	−16.4%	−2.5%	−9.2%	−6.1%	−3.1%	0.0%	3.0%
EBIT	−₩2.9B	−₩5.8B	−₩3.5B	−₩1.6B	−₩1.5B	−₩1.5B	−₩1.5B	−₩1.5B
EBIT margin	−1.6%	−3.8%	−2.4%	−1.2%	−1.2%	−1.2%	−1.2%	−1.2%
After-tax EBIT	−₩2.1B	−₩4.2B	−₩2.5B	−₩1.2B	−₩1.1B	−₩1.1B	−₩1.1B	−₩1.1B
+ Depreciation	—	—	—	₩4B	₩3.8B	₩3.7B	₩3.7B	₩3.8B
− Capital spending	—	—	—	₩5.4B	₩5.1B	₩4.9B	₩4.9B	₩5.1B
− Working capital	−₩16B	−₩1.6B	−₩1.2B	−₩4.6B	−₩2.8B	−₩1.3B	₩0	₩1.2B
Free cash flow	—	—	—	₩2.1B	₩405M	−₩972M	−₩2.3B	−₩3.6B
Discount factor	—	—	—	0.932	0.868	0.809	0.753	0.702
Present value	—	—	—	₩1.9B	₩351M	−₩786M	−₩1.7B	−₩2.5B

Terminal value −₩45B, worth −₩31B today: 92% 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 ₩7,715 a share)Now 0.16×	₩1,4160.18×	₩1,7880.23×	₩3,1780.41×
Price / earnings (last 12 months: ₩27 a share)Now 45.4×	₩1385.19×	₩38614.5×	₩88933.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩4 a share)Now 271.2×	₩235.19×	₩6514.5×	₩14933.3×

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%
6.3%	₩1,384	₩1,079	₩702	₩225	—
6.8%	₩1,528	₩1,269	₩954	₩565	₩72
7.3%	₩1,650	₩1,426	₩1,158	₩834	₩433
7.8%	₩1,753	₩1,558	₩1,327	₩1,052	₩719
8.3%	₩1,843	₩1,670	₩1,469	₩1,233	₩950

Now (TTM)

Market cap: ₩25B
Enterprise value: −₩33B
P/E: 45.4×
P/B: 0.2×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩1,630	₩1,297	₩1,868	₩2,070	₩2,850
Market cap	₩33B	₩26B	₩38B	₩42B	₩58B
P/E	24.5×	—	—	12.6×	7.0×
P/B	0.2×	0.2×	0.2×	0.3×	0.4×
P/S	0.2×	0.2×	0.2×	0.2×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Dong IL Steel MFG	45.4×	0.2×	0.2×	—	0.0%
POSCO Holdings	16.2×	0.4×	0.3×	7.7×	3.6%
Korea Zinc	18.1×	1.6×	0.8×	—	2.3%
Hyundai Steel	—	0.2×	0.2×	—	1.9%
Poongsan	8.0×	0.7×	0.3×	5.9×	2.9%
SeAH Besteel Holdings	12.7×	0.6×	0.3×	9.6×	3.8%
Sama Aluminium	—	4.3×	3.1×	—	0.0%
Similar companies (median)	14.4×	0.6×	0.3×	7.7×	2.6%

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

Also known as: Dong IL Steel MFG / 동일제강 / 002690 / KRX:002690

Source: KRX statistical information