KOSPI · 004060 · Retail & Trade · ₩004060

SGSG세계물산

004060 · KOSPI · ₩004060 · SG세계물산

₩1,946▼ ₩74 (3.66%)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

₩300

vs the current price (₩1,946)

Enterprise value: −₩6.8B
Equity value: ₩6.1B
WACC: 15.0%

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 85% 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 ₩1,946, the model needs an operating margin of 4.6% every year (it uses −1.0%).
Margins ranged from −3.5% to 4.5% 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.
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.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 10.0× against a typical 12.3× 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: ₩91; −95.3%
Base: ₩300; −84.6%
Bull: ₩688; −64.7%

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 (−1.0%).

Revenue growth

Revenue growth, year 1-6.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.4% 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 (-6.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-1%
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 & amortisation0.8%
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 spending1%
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 capital34.1%
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.
Beta2
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 4.28, 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): ₩125B
Net debt (borrowings and leases − cash and deposits): −₩13B
Shares: 20,242,496
Share price: ₩1,946
Market cap: ₩39B

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	₩143B	₩139B	₩132B	₩117B	₩112B	₩110B	₩111B	₩114B
Growth	−11.3%	−3.0%	−4.6%	−6.4%	−4.0%	−1.7%	0.7%	3.0%
EBIT	₩1.8B	−₩2.8B	−₩1.5B	−₩1.2B	−₩1.1B	−₩1.1B	−₩1.1B	−₩1.1B
EBIT margin	1.3%	−2.0%	−1.1%	−1.0%	−1.0%	−1.0%	−1.0%	−1.0%
After-tax EBIT	₩1.3B	−₩2B	−₩1.1B	−₩847M	−₩813M	−₩799M	−₩805M	−₩829M
+ Depreciation	—	—	—	₩935M	₩897M	₩882M	₩888M	₩915M
− Capital spending	₩1.2B	₩2.2B	₩850M	₩1.2B	₩1.1B	₩1.1B	₩1.1B	₩1.1B
− Working capital	₩1.5B	−₩7.4B	₩716M	−₩2.7B	−₩1.6B	−₩650M	₩263M	₩1.1B
Free cash flow	—	—	—	₩1.6B	₩556M	−₩370M	−₩1.3B	−₩2.2B
Discount factor	—	—	—	0.870	0.756	0.657	0.572	0.497
Present value	—	—	—	₩1.4B	₩421M	−₩243M	−₩738M	−₩1.1B

Terminal value −₩13B, worth −₩6.6B today: 97% 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 ₩12,797 a share)Now 0.15×	₩2,9540.23×	₩4,5150.35×	₩6,8070.53×
Price / earnings (last 12 months: ₩194 a share)Now 10.0×	₩6213.19×	₩2,38612.3×	₩9,91551.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩266 a share)Now 7.32×	₩8503.19×	₩3,26612.3×	₩13,56851.0×

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%
14.0%	₩364	₩311	₩254	₩192	₩123
14.5%	₩380	₩332	₩278	₩220	₩157
15.0%	₩396	₩350	₩300	₩246	₩188
15.5%	₩410	₩367	₩321	₩270	₩216
16.0%	₩423	₩383	₩340	₩292	₩241

Now (TTM)

Market cap: ₩39B
Enterprise value: ₩23B
P/E: 10.0×
P/B: 0.2×
P/S: 0.3×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,390	₩3,200	₩4,520	₩5,340	₩6,840
Market cap	₩69B	₩65B	₩91B	₩108B	₩138B
P/E	77.6×	12.1×	—	60.9×	2.9×
P/B	0.3×	0.2×	0.4×	0.4×	0.6×
P/S	0.5×	0.5×	0.6×	0.7×	1.0×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
SG	10.0×	0.2×	0.3×	—	0.0%
Samsung C&T	18.1×	0.5×	1.2×	—	0.9%
POSCO International	10.3×	1.2×	0.3×	—	3.8%
ISC	42.6×	5.7×	11.9×	—	0.5%
Youngone	5.2×	0.7×	0.7×	—	3.0%
Dong SUH Companies	19.6×	1.7×	5.3×	—	4.0%
SK Gas	7.4×	0.6×	0.3×	—	3.5%
Similar companies (median)	14.2×	1.0×	0.9×	—	3.3%

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

Also known as: SG / SG세계물산 / 004060 / KRX:004060

Source: KRX statistical information