KOSPI · 003670 · Batteries · ₩003670

POSCO Future M포스코퓨처엠

003670 · KOSPI · ₩003670 · 포스코퓨처엠

₩168,900▲ ₩8,400 (5.23%)End-of-day · Oct 28, 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: −₩1.5T
Equity value: −₩4.8T
WACC: 8.4%

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 ₩168,900, the model needs an operating margin of 69.7% every year (it uses 2.2%).
Analysts' forecasts for 2026: revenue ₩3.1T, operating profit ₩90B (2.9% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩4.2T, operating profit ₩197B (4.6% margin) (1 broker). The model starts from the last 12 months reported.
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 (2.2%).

Revenue growth

Revenue growth, year 1-3.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-2.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-0.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-3.8% 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 (-3.8% 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 & amortisation36.1%
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 spending45.1%
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).
Working capital17.5%
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 rate4.08%
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.
Beta0.95
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 0.92, 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)5.58%
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): ₩2.9T
Net debt (borrowings and leases − cash and deposits): ₩2.9T
+ Stakes and investments: ₩191B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩514B
Shares: 88,946,220
Share price: ₩168,900
Market cap: ₩15T

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	₩4.8T	₩3.7T	₩2.9T	₩2.8T	₩2.7T	₩2.7T	₩2.7T	₩2.8T
Growth	44.2%	−22.3%	−20.6%	−3.8%	−2.1%	−0.4%	1.3%	3.0%
EBIT	₩36B	₩721M	₩33B	₩61B	₩59B	₩59B	₩60B	₩62B
EBIT margin	0.8%	0.0%	1.1%	2.2%	2.2%	2.2%	2.2%	2.2%
After-tax EBIT	₩26B	₩523M	₩24B	₩44B	₩43B	₩43B	₩43B	₩45B
+ Depreciation	—	—	—	₩996B	₩976B	₩972B	₩984B	₩1T
− Capital spending	₩1.4T	₩2.1T	₩1.5T	₩1.2T	₩1.2T	₩1.2T	₩1.2T	₩1.3T
− Working capital	₩50B	−₩781B	−₩205B	−₩19B	−₩10B	−₩1.9B	₩6.1B	₩14B
Free cash flow	—	—	—	−₩185B	−₩190B	−₩197B	−₩208B	−₩222B
Discount factor	—	—	—	0.922	0.850	0.784	0.723	0.667
Present value	—	—	—	−₩171B	−₩162B	−₩155B	−₩150B	−₩148B

Terminal value −₩1.1T, worth −₩701B today: 47% 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 ₩47,212 a share)Now 3.58×	₩177,9943.77×	₩260,1615.51×	₩569,30312.1×

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%
7.4%	—	—	—	—	—
7.9%	—	—	—	—	—
8.4%	—	—	—	—	—
8.9%	—	—	—	—	—
9.4%	—	—	—	—	—

Now (TTM)

Market cap: ₩15T
Enterprise value: ₩18T
P/E: 337.2×
P/B: 3.6×
P/S: 5.2×
EV/EBITDA: —
Dividend yield: 0.1%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩187,000	₩142,100	₩359,000	₩180,000	₩144,000
Market cap	₩17T	₩13T	₩32T	₩16T	₩13T
P/E	515.6×	—	1,111.7×	135.4×	95.5×
P/B	4.1×	4.3×	13.6×	6.5×	5.4×
P/S	5.7×	3.4×	6.7×	4.8×	6.4×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.1%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
POSCO Future M	337.2×	3.6×	5.2×	—	0.1%
LG Energy Solution	—	4.1×	3.5×	—	0.0%
Samsung SDI	1,143.1×	1.8×	3.0×	—	0.0%
Ecopro BM	218.1×	5.3×	4.1×	—	0.1%
L&F	—	4.7×	1.3×	15.8×	0.0%
DN Automotive	6.1×	1.0×	0.6×	—	2.5%
Ecopro Materials	30.0×	1.9×	4.1×	—	0.0%
Similar companies (median)	124.1×	3.0×	3.3×	15.8×	0.0%

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

Also known as: POSCO Future M / 포스코퓨처엠 / 003670 / KRX:003670

Source: KRX statistical information