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Sun Kwang

003100 · KOSDAQ · ₩003100 · 선광

₩19,240▲ ₩120 (0.63%)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

₩95,743

vs the current price (₩19,240)

Enterprise value
₩773B
Equity value
₩632B
WACC
5.4%

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 398% 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 ₩19,240, the model needs an operating margin of 9.3% every year (it uses 20.5%).
  • Or revenue growth −21.9 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 2.8× against a typical 4.2× 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
₩47,735
+148.1%
Base
₩95,743
+397.6%
Bull
₩193,847
+907.5%

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 (20.5%).

Revenue growth

  • 3.4%

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

    Default: the last 3 years' revenue growth (3.4% a year, annual reports), fading to 3% by year 5.

  • 3.3%

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

    Default: the last 3 years' revenue growth (3.4% a year, annual reports), fading to 3% by year 5.

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.4% a year, annual reports), fading to 3% by year 5.

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.4% 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 (3.4% a year, annual reports), fading to 3% by year 5.

Business

  • 20.5%

    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.

  • 17.7%

    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).

  • 22.1%

    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).

  • 10.4%

    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.

  • 4.08%

    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.

  • 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 0.3, 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.

  • 5.58%

    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)
₩193B
Net debt (borrowings and leases − cash and deposits)
₩195B
+ Stakes and investments
₩55B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.4B
Shares
6,600,000
Share price
₩19,240
Market cap
₩127B

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₩185B₩187B₩190B₩200B₩206B₩213B₩220B₩226B
Growth7.6%0.8%2.0%3.4%3.3%3.2%3.1%3.0%
EBIT₩39B₩36B₩41B₩41B₩42B₩44B₩45B₩46B
EBIT margin21.1%19.5%21.7%20.5%20.5%20.5%20.5%20.5%
After-tax EBIT₩28B₩26B₩30B₩30B₩31B₩32B₩33B₩34B
+ Depreciation———₩35B₩37B₩38B₩39B₩40B
− Capital spending₩14B₩38B₩74B₩44B₩46B₩47B₩49B₩50B
− Working capital₩17B−₩2B−₩33B₩683M₩685M₩687M₩686M₩685M
Free cash flow———₩20B₩21B₩22B₩22B₩23B
Discount factor———0.9490.9010.8550.8110.770
Present value———₩19B₩19B₩18B₩18B₩18B

Terminal value ₩884B, worth ₩681B today: 88% 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 ₩68,753 a share)Now 0.28×₩19,0380.28×₩22,9860.33×₩137,5082.00×
Price / earnings (last 12 months: ₩6,936 a share)Now 2.77×₩22,0593.18×₩29,3234.23×₩164,67623.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩8,118 a share)Now 2.37×₩25,8173.18×₩34,3184.23×₩192,72423.7×

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%
4.4%₩100,987₩119,982₩147,017₩188,570₩260,645
4.9%₩84,576₩98,331₩116,890₩143,303₩183,902
5.4%₩71,941₩82,303₩95,743₩113,877₩139,685
5.9%₩61,917₩69,962₩80,087₩93,221₩110,940
6.4%₩53,773₩60,171₩68,033₩77,927₩90,762

Now (TTM)

Market cap
₩127B
Enterprise value
₩163B
P/E
2.8×
P/B
0.3×
P/S
0.7×
EV/EBITDA
—
Dividend yield
2.3%

Over time (at each year end)

20252024202320222021
Price₩19,330₩14,490₩17,940₩134,100₩58,100
Market cap₩128B₩96B₩118B₩885B₩383B
P/E3.2×3.4×4.0×61.1×15.9×
P/B0.3×0.2×0.3×2.6×1.2×
P/S0.7×0.5×0.6×5.1×2.4×
EV/EBITDA—————
Dividend yield2.3%3.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sun Kwang2.8×0.3×0.7×—2.3%
HMM14.6×0.7×1.8×—3.2%
Hyundai Glovis9.1×1.3×0.4×—3.1%
Pan Ocean9.0×0.5×0.5×—2.6%
CJ Logistics6.6×0.4×0.1×—1.2%
Korea Line3.4×0.2×0.5×—0.0%
Heung-A Shipping17.4×1.5×2.3×—0.0%
Similar companies (median)9.1×0.6×0.5×—1.9%

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

Also known as: Sun Kwang / 선광 / 003100 / KRX:003100

Source: KRX statistical information