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Sun&L

002820 · KOSPI · ₩002820 · SUN&L

₩1,040▲ ₩26 (2.56%)End-of-day · Oct 30, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩367B
Equity value
−₩516B
WACC
4.3%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩1,040, the model needs an operating margin of 3.7% every year (it uses −5.4%).
  • 100% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
  • 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
—
Bull
—

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 (−5.4%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-18.7% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-18.7% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-18.7% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-18.7% 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 (-18.7% a year, annual reports), fading to 3% by year 5.

Business

  • -5.4%

    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.

  • 2.5%

    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).

  • 3.7%

    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).

  • 22.9%

    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.

  • 4.01%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 104 weeks of weekly returns against KOSPI (official index); raw beta -0.42, 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.

  • 5.51%

    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)
₩234B
Net debt (borrowings and leases − cash and deposits)
₩147B
+ Stakes and investments
₩335M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩2.5B
Shares
12,063,204
Share price
₩1,040
Market cap
₩13B

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₩441B₩339B₩272B₩210B₩196B₩189B₩189B₩195B
Growth−13.0%−23.1%−19.7%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩30B−₩5.9B−₩18B−₩11B−₩11B−₩10B−₩10B−₩11B
EBIT margin−6.8%−1.7%−6.6%−5.4%−5.4%−5.4%−5.4%−5.4%
After-tax EBIT−₩22B−₩4.3B−₩13B−₩8.2B−₩7.7B−₩7.4B−₩7.4B−₩7.6B
+ Depreciation₩17B₩4.9B₩5.8B₩5.3B₩4.9B₩4.7B₩4.7B₩4.9B
− Capital spending₩18B₩7.2B₩13B₩7.8B₩7.3B₩7B₩7B₩7.2B
− Working capital−₩67B−₩34M₩117B−₩5.4B−₩3.2B−₩1.6B−₩87M₩1.3B
Free cash flow₩45B−₩6.5B−₩138B−₩5.4B−₩6.8B−₩8.1B−₩9.6B−₩11B
Discount factor———0.9590.9200.8820.8460.812
Present value———−₩5.2B−₩6.3B−₩7.2B−₩8.1B−₩9.1B

Terminal value −₩407B, worth −₩331B today: 90% 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 ₩18,625 a share)Now 0.06×₩2,3470.13×₩3,5440.19×₩5,4100.29×

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%
3.3%—————
3.8%—————
4.3%—————
4.8%—————
5.3%—————

Now (TTM)

Market cap
₩13B
Enterprise value
₩160B
P/E
1.6×
P/B
0.1×
P/S
0.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,635₩2,965₩2,495₩3,100₩5,000
Market cap₩32B₩36B₩30B₩37B₩60B
P/E—————
P/B0.1×0.2×0.1×0.2×0.3×
P/S0.1×0.1×0.1×0.1×0.1×
EV/EBITDA———1,443.5×—
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sun&L1.6×0.1×0.1×—0.0%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea19.5×2.5×2.1×—0.7%
Dongwon Systems9.7×0.7×0.4×5.7×2.8%
Nexen Tire3.7×0.3×0.2×—3.4%
PI Advanced Materials12.0×1.2×1.6×4.8×2.4%
Similar companies (median)7.7×0.6×0.4×5.3×2.6%

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

Also known as: Sun&L / SUN&L / 002820 / KRX:002820

Source: KRX statistical information