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Namsung

004270 · KOSPI · ₩004270 · 남성

₩4,790▲ ₩315 (7.04%)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

With these assumptions the model gives no positive value.

Enterprise value
−₩798M
Equity value
−₩97B
WACC
6.1%

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 ₩4,790, the model needs an operating margin of 11.2% every year (it uses 0.9%).
  • Margins ranged from −8.7% to 6.8% 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.
  • 63% 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 4.2× against a typical 10.1× 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
—
Base
—
Bull
—

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 (0.9%).

Revenue growth

  • -7.6%

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

    Default: the last 3 years' revenue growth (-7.6% a year, annual reports), fading to 3% by year 5.

  • -4.9%

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

    Default: the last 3 years' revenue growth (-7.6% a year, annual reports), fading to 3% by year 5.

  • -2.3%

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

    Default: the last 3 years' revenue growth (-7.6% a year, annual reports), fading to 3% by year 5.

  • 0.4%

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

    Default: the last 3 years' revenue growth (-7.6% 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 (-7.6% a year, annual reports), fading to 3% by year 5.

Business

  • 0.9%

    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.

  • 2.1%

    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).

  • 2.6%

    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).

  • 40%

    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.

  • 4.11%

    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.

  • 2

    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 5.12, 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.

  • 5.61%

    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)
₩79B
Net debt (borrowings and leases − cash and deposits)
₩96B
Shares
4,560,128
Share price
₩4,790
Market cap
₩22B

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₩70B₩75B₩78B₩73B₩69B₩68B₩68B₩70B
Growth−29.0%7.0%4.0%−7.6%−4.9%−2.3%0.4%3.0%
EBIT−₩6.1B−₩1.8B₩188M₩657M₩625M₩611M₩613M₩632M
EBIT margin−8.7%−2.4%0.2%0.9%0.9%0.9%0.9%0.9%
After-tax EBIT−₩4.4B−₩1.3B₩136M₩477M₩453M₩443M₩445M₩458M
+ Depreciation———₩1.5B₩1.5B₩1.4B₩1.4B₩1.5B
− Capital spending₩339M₩44M₩5.5B₩1.9B₩1.8B₩1.8B₩1.8B₩1.8B
− Working capital−₩13B₩292M−₩5.6B−₩2.4B−₩1.4B−₩639M₩109M₩817M
Free cash flow———₩2.5B₩1.5B₩742M−₩4.7M−₩710M
Discount factor———0.9420.8880.8370.7890.743
Present value———₩2.4B₩1.4B₩621M−₩3.7M−₩528M

Terminal value −₩6.2B, worth −₩4.6B today: 579% 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 ₩23,671 a share)Now 0.20×₩6,1180.26×₩13,9240.59×₩21,9010.93×
Price / earnings (last 12 months: ₩1,142 a share)Now 4.19×₩7,2946.39×₩11,55710.1×₩26,13622.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,696 a share)Now 1.78×₩17,2206.39×₩27,28410.1×₩61,70222.9×

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%
5.1%—————
5.6%—————
6.1%—————
6.6%—————
7.1%—————

Now (TTM)

Market cap
₩22B
Enterprise value
₩118B
P/E
4.2×
P/B
0.2×
P/S
0.3×
EV/EBITDA
—
Dividend yield
4.1%

Over time (at each year end)

20252024202320222021
Price₩6,980₩8,936₩17,728₩15,343₩24,923
Market cap₩32B₩41B₩81B₩70B₩114B
P/E—9.2×—21.9×16.0×
P/B0.3×0.4×0.7×0.6×1.0×
P/S0.4×0.5×1.2×0.7×1.1×
EV/EBITDA—————
Dividend yield2.8%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Namsung4.2×0.2×0.3×—4.1%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.6×1.3×0.3×—3.7%
ISC45.3×6.0×12.6×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies18.9×1.6×5.1×—4.2%
Shinsegae14.4×0.5×0.3×—2.0%
Similar companies (median)16.6×1.0×1.0×—2.6%

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

Also known as: Namsung / 남성 / 004270 / KRX:004270

Source: KRX statistical information