KOSPI · 004890 · Steel & Materials · ₩004890

Dongil Industries동일산업

004890 · KOSPI · ₩004890 · 동일산업

₩34,100▼ ₩900 (2.57%)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

₩43,494

vs the current price (₩34,100)

Enterprise value: ₩37B
Equity value: ₩105B
WACC: 7.4%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Bear / Base / Bull

Bear: ₩26,306; −22.9%
Base: ₩43,494; +27.5%
Bull: ₩80,081; +134.8%

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 (1.2%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.3% 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 (-11.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.2%
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 & amortisation2.2%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending1.3%
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).
Working capital40%
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.
Beta0.6
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 0.07, 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): ₩355B
Net debt (borrowings and leases − cash and deposits): −₩61B
+ Stakes and investments: ₩7.2B; Associates, long-term financial assets and deposits (book value)
Shares: 2,425,215
Share price: ₩34,100
Market cap: ₩83B

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	₩441B	₩416B	₩348B	₩319B	₩298B	₩288B	₩287B	₩296B
Growth	−11.4%	−5.7%	−16.3%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	−₩4.2B	−₩4.2B	−₩2.7B	₩3.8B	₩3.6B	₩3.5B	₩3.4B	₩3.5B
EBIT margin	−1.0%	−1.0%	−0.8%	1.2%	1.2%	1.2%	1.2%	1.2%
After-tax EBIT	−₩3.1B	−₩3B	−₩2B	₩2.8B	₩2.6B	₩2.5B	₩2.5B	₩2.6B
+ Depreciation	₩12B	₩8.4B	₩6.1B	₩7B	₩6.6B	₩6.3B	₩6.3B	₩6.5B
− Capital spending	₩7.5B	₩4.3B	₩4.5B	₩4.2B	₩3.9B	₩3.7B	₩3.7B	₩3.8B
− Working capital	−₩1.2B	−₩27B	₩23B	−₩14B	−₩8.6B	−₩4.2B	−₩230M	₩3.4B
Free cash flow	₩2.8B	₩28B	−₩23B	₩20B	₩14B	₩9.3B	₩5.3B	₩1.8B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	₩18B	₩12B	₩7.5B	₩4B	₩1.3B

Terminal value −₩8.4B, worth −₩5.9B today: -16% 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 ₩174,870 a share)Now 0.20×	₩38,6580.22×	₩44,8860.26×	₩188,6981.08×
Price / earnings (last 12 months: ₩1,461 a share)Now 23.3×	₩10,3847.11×	₩27,13918.6×	₩88,11060.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩18,141 a share)Now 1.88×	₩128,9717.11×	₩337,08218.6×	₩1,094,36160.3×

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%
6.4%	₩50,460	₩47,192	₩43,138	₩37,993	₩31,273
6.9%	₩49,842	₩46,915	₩43,351	₩38,935	₩33,335
7.4%	₩49,300	₩46,658	₩43,494	₩39,647	₩34,883
7.9%	₩48,817	₩46,419	₩43,586	₩40,195	₩36,075
8.4%	₩48,381	₩46,194	₩43,638	₩40,621	₩37,012

Now (TTM)

Market cap: ₩83B
Enterprise value: ₩22B
P/E: 23.3×
P/B: 0.2×
P/S: 0.2×
EV/EBITDA: 1.7×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩39,200	₩39,550	₩47,100	₩185,500	₩149,000
Market cap	₩95B	₩96B	₩114B	₩450B	₩361B
P/E	—	6.6×	—	20.6×	8.3×
P/B	0.2×	0.2×	0.3×	1.1×	0.9×
P/S	0.3×	0.2×	0.3×	0.9×	0.8×
EV/EBITDA	13.3×	2.3×	9.2×	12.3×	5.9×
Dividend yield	0.0%	3.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Dongil Industries	23.3×	0.2×	0.2×	1.7×	0.0%
POSCO Holdings	16.6×	0.4×	0.3×	7.8×	3.5%
Korea Zinc	18.9×	1.6×	0.9×	—	2.2%
Hyundai Steel	—	0.2×	0.2×	—	1.9%
Poongsan	8.3×	0.7×	0.3×	6.0×	2.8%
SeAH Besteel Holdings	12.6×	0.6×	0.3×	9.6×	3.8%
Sama Aluminium	—	4.3×	3.2×	—	0.0%
Similar companies (median)	14.6×	0.6×	0.3×	7.8×	2.5%

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

Also known as: Dongil Industries / 동일산업 / 004890 / KRX:004890

Source: KRX statistical information