KOSPI · 002990 · Construction · ₩002990

KUMHO Engineering & Construction금호건설

002990 · KOSPI · ₩002990 · 금호건설

₩8,410▼ ₩460 (5.19%)End-of-day · Oct 30, 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

₩23,471

vs the current price (₩8,410)

Enterprise value: ₩602B
Equity value: ₩881B
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.

Why the model and the price differ

The model is 179% 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 ₩8,410, the model needs an operating margin of 0.1% every year (it uses 2.2%).
Margins ranged from −9.5% to 5.4% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
50% 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.
Today's P/E is 4.1× against a typical 6.0× 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: ₩8,639; +2.7%
Base: ₩23,471; +179.1%
Bull: ₩50,303; +498.1%

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 (2.2%).

Revenue growth

Revenue growth, year 1-0.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.5% 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 (-0.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.2%
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 & amortisation0%
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 spending0%
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 capital-2.1%
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 rate4.01%
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.
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 0.1, 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)5.51%
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): ₩2T
Net debt (borrowings and leases − cash and deposits): ₩1.4B
+ Stakes and investments: ₩281B; Associates, long-term financial assets and deposits (book value)
Shares: 37,552,240; incl. 292,266 preferred
Share price: ₩8,410
Market cap: ₩317B

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	₩2.2T	₩1.9T	₩2T	₩2T	₩2T	₩2T	₩2.1T	₩2.1T
Growth	8.3%	−13.7%	5.4%	−0.5%	0.4%	1.3%	2.1%	3.0%
EBIT	₩22B	−₩182B	₩47B	₩43B	₩44B	₩44B	₩45B	₩46B
EBIT margin	1.0%	−9.5%	2.3%	2.2%	2.2%	2.2%	2.2%	2.2%
After-tax EBIT	₩16B	−₩132B	₩34B	₩31B	₩32B	₩32B	₩33B	₩34B
+ Depreciation	—	—	—	₩0	₩0	₩0	₩0	₩0
− Capital spending	₩1.3B	₩185M	₩604M	₩0	₩0	₩0	₩0	₩0
− Working capital	₩220B	−₩302B	−₩30B	₩208M	−₩166M	−₩541M	−₩886M	−₩1.3B
Free cash flow	—	—	—	₩31B	₩32B	₩33B	₩34B	₩35B
Discount factor	—	—	—	0.932	0.869	0.810	0.755	0.703
Present value	—	—	—	₩29B	₩28B	₩26B	₩25B	₩25B

Terminal value ₩666B, worth ₩469B today: 78% 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 ₩7,679 a share)Now 1.10×	₩2,5980.34×	₩3,9480.51×	₩6,4350.84×
Price / earnings (last 12 months: ₩2,063 a share)Now 4.08×	₩4,8592.36×	₩12,3005.96×	₩109,19952.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,498 a share)Now 5.61×	₩3,5292.36×	₩8,9345.96×	₩79,31252.9×

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%	₩23,873	₩25,369	₩27,213	₩29,545	₩32,586
6.8%	₩22,450	₩23,671	₩25,147	₩26,968	₩29,271
7.3%	₩21,252	₩22,266	₩23,471	₩24,929	₩26,727
7.8%	₩20,232	₩21,084	₩22,085	₩23,275	₩24,715
8.3%	₩19,351	₩20,077	₩20,919	₩21,907	₩23,083

Now (TTM)

Market cap: ₩313B
Enterprise value: ₩297B
P/E: 4.0×
P/B: 1.1×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 2.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,990	₩2,680	₩5,190	₩7,000	₩11,600
Market cap	₩149B	₩100B	₩193B	₩261B	₩432B
P/E	2.3×	—	174.5×	12.3×	2.9×
P/B	0.6×	0.4×	0.4×	0.5×	0.7×
P/S	0.1×	0.1×	0.1×	0.1×	0.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	5.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
KUMHO Engineering & Construction	4.0×	1.1×	0.2×	—	2.4%
Hyundai Engineering & Construction	20.8×	1.0×	0.3×	—	1.0%
Daewoo Engineering & Construction	—	1.2×	0.6×	—	0.0%
GS Engineering & Construction	17.1×	0.5×	0.2×	—	1.9%
DL E&C	3.4×	0.4×	0.3×	—	1.6%
KEPCO Plant Service & Engineering	14.3×	1.4×	1.1×	8.0×	0.0%
Ipark Hyundai Development	8.6×	0.5×	0.4×	—	2.9%
Similar companies (median)	14.3×	0.7×	0.4×	8.0×	1.3%

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

Also known as: KUMHO Engineering & Construction / 금호건설 / 002990 / KRX:002990

Source: KRX statistical information