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DRB Holding

004840 · KOSPI · ₩004840 · DRB동일

₩3,835▲ ₩15 (0.39%)End-of-day · Oct 29, 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
₩301B
Equity value
−₩10B
WACC
5.0%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩3,835, the model needs an operating margin of 3.3% every year (it uses 2.9%).
  • Or revenue growth +12.7 points a year higher than assumed in each of the 5 years.
  • 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.
  • Today's P/E is 6.2× 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
₩53,955
+1,306.9%

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 (2.9%).

Revenue growth

  • 6.6%

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

    Default: the last 3 years' revenue growth (6.6% a year, annual reports), fading to 3% by year 5.

  • 5.7%

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

    Default: the last 3 years' revenue growth (6.6% a year, annual reports), fading to 3% by year 5.

  • 4.8%

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

    Default: the last 3 years' revenue growth (6.6% a year, annual reports), fading to 3% by year 5.

  • 3.9%

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

    Default: the last 3 years' revenue growth (6.6% 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 (6.6% a year, annual reports), fading to 3% by year 5.

Business

  • 2.9%

    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.

  • 5.1%

    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).

  • 6.3%

    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).

  • 25%

    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.

  • 4.01%

    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.

  • 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 0.16, 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.

  • 5.51%

    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)
₩831B
Net debt (borrowings and leases − cash and deposits)
₩182B
+ Stakes and investments
₩3.3B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩133B
Shares
19,272,364
Share price
₩3,835
Market cap
₩74B

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₩738B₩753B₩803B₩886B₩937B₩982B₩1T₩1.1T
Growth11.5%2.0%6.7%6.6%5.7%4.8%3.9%3.0%
EBIT₩36B₩22B₩25B₩26B₩27B₩28B₩30B₩30B
EBIT margin4.9%2.9%3.1%2.9%2.9%2.9%2.9%2.9%
After-tax EBIT₩26B₩16B₩18B₩19B₩20B₩21B₩21B₩22B
+ Depreciation———₩45B₩48B₩50B₩52B₩54B
− Capital spending₩32B₩65B₩47B₩56B₩59B₩62B₩64B₩66B
− Working capital−₩43B₩23B₩1.4B₩14B₩13B₩11B₩9.6B₩7.6B
Free cash flow———−₩5.7B−₩4.2B−₩2.4B−₩366M₩1.8B
Discount factor———0.9530.9080.8650.8240.785
Present value———−₩5.4B−₩3.8B−₩2.1B−₩302M₩1.4B

Terminal value ₩397B, worth ₩312B today: 103% 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 ₩21,971 a share)Now 0.17×₩4,4440.20×₩5,3760.24×₩6,3910.29×
Price / earnings (last 12 months: ₩618 a share)Now 6.21×₩3,1585.11×₩6,22010.1×₩15,06324.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩919 a share)Now 4.17×₩4,6975.11×₩9,25310.1×₩22,40924.4×

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%
4.0%₩3,938₩5,946₩8,955₩14,000₩24,291
4.5%₩533₩1,667₩3,241₩5,594₩9,530
5.0%———₩631₩2,352
5.5%—————
6.0%—————

Now (TTM)

Market cap
₩74B
Enterprise value
₩256B
P/E
6.2×
P/B
0.2×
P/S
0.1×
EV/EBITDA
—
Dividend yield
2.1%

Over time (at each year end)

20252024202320222021
Price₩4,955₩4,065₩5,850₩4,080₩5,260
Market cap₩95B₩78B₩113B₩79B₩101B
P/E21.4×8.3×7.3×51.2×—
P/B0.2×0.2×0.3×0.2×0.3×
P/S0.1×0.1×0.2×0.1×0.2×
EV/EBITDA—————
Dividend yield1.6%2.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
DRB Holding6.2×0.2×0.1×—2.1%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea19.8×2.5×2.1×—0.7%
Dongwon Systems9.7×0.7×0.4×5.7×2.8%
Nexen Tire3.6×0.3×0.2×—3.5%
PI Advanced Materials12.4×1.2×1.7×5.0×2.3%
Similar companies (median)7.7×0.6×0.4×5.4×2.6%

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

Also known as: DRB Holding / DRB동일 / 004840 / KRX:004840

Source: KRX statistical information