KOSPI · 003620 · Autos · ₩003620

KG MobilityKG모빌리티

003620 · KOSPI · ₩003620 · KG모빌리티

₩2,515▲ ₩20 (0.80%)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

With these assumptions the model gives no positive value.

Enterprise value: −₩2T
Equity value: −₩2.8T
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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩2,515, the model needs an operating margin of 2.2% every year (it uses −0.5%).
Margins ranged from −10.8% to 0.8% 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.
71% 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

Cycle options

Margin path

Every year uses the cycle-average margin (−0.5%).

Revenue growth

Revenue growth, year 17.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 26.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 35.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (7.9% 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 (7.9% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-0.5%
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.
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 & amortisation5.3%
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 spending6.6%
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 capital9%
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 rate4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
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 0.35, 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)5.61%
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): ₩4.8T
Net debt (borrowings and leases − cash and deposits): ₩727B
+ Stakes and investments: ₩8B; Associates, long-term financial assets and deposits (book value)
Shares: 202,374,912
Share price: ₩2,515
Market cap: ₩509B

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	₩3.7T	₩3.9T	₩4.3T	₩5.2T	₩5.5T	₩5.8T	₩6T	₩6.2T
Growth	9.1%	4.5%	10.2%	7.9%	6.7%	5.5%	4.2%	3.0%
EBIT	₩13B	₩1.4B	₩36B	−₩26B	−₩27B	−₩29B	−₩30B	−₩31B
EBIT margin	0.3%	0.0%	0.8%	−0.5%	−0.5%	−0.5%	−0.5%	−0.5%
After-tax EBIT	₩9.1B	₩1B	₩26B	−₩19B	−₩20B	−₩21B	−₩22B	−₩23B
+ Depreciation	—	—	—	₩273B	₩291B	₩307B	₩320B	₩330B
− Capital spending	₩194B	₩308B	₩285B	₩340B	₩363B	₩383B	₩399B	₩411B
− Working capital	₩103B	₩159B	₩108B	₩34B	₩31B	₩27B	₩22B	₩16B
Free cash flow	—	—	—	−₩120B	−₩122B	−₩124B	−₩122B	−₩120B
Discount factor	—	—	—	0.948	0.899	0.853	0.809	0.767
Present value	—	—	—	−₩113B	−₩110B	−₩105B	−₩99B	−₩92B

Terminal value −₩2T, worth −₩1.5T today: 74% 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 ₩7,541 a share)Now 0.33×	₩2,8680.38×	₩6,2910.83×	₩20,6612.74×

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%	—	—	—	—	—
4.9%	—	—	—	—	—
5.4%	—	—	—	—	—
5.9%	—	—	—	—	—
6.4%	—	—	—	—	—

Now (TTM)

Market cap: ₩509B
Enterprise value: ₩1.2T
P/E: 5.4×
P/B: 0.3×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,500	₩4,036	₩9,293	₩14,067	₩14,067
Market cap	₩708B	₩817B	₩1.9T	₩2.8T	₩2.8T
P/E	15.2×	24.1×	210.7×	—	—
P/B	0.5×	0.6×	1.7×	2.6×	—
P/S	0.2×	0.2×	0.5×	0.8×	1.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
KG Mobility	5.4×	0.3×	0.1×	—	0.0%
Hyundai Motor	7.3×	0.5×	0.3×	—	3.4%
KIA	5.9×	0.6×	0.3×	—	6.4%
KG Eco Solution	1.9×	0.2×	0.0×	—	3.0%
Autech	—	0.6×	0.1×	—	0.0%
DYP	3.3×	0.3×	0.1×	—	2.5%
Similar companies (median)	4.6×	0.5×	0.1×	—	3.0%

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

Also known as: KG Mobility / KG모빌리티 / 003620 / KRX:003620

Source: KRX statistical information