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Korea Airport Service

005430 · KOSPI · ₩005430 · 한국공항

₩87,000▲ ₩3,000 (3.57%)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

₩208,224

vs the current price (₩87,000)

Enterprise value
₩590B
Equity value
₩659B
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.

Why the model and the price differ

The model is 139% 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 ₩87,000, the model needs an operating margin of 2.6% every year (it uses 5.3%).
  • Or revenue growth −22.8 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 6.0× against a typical 5.8× 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
₩90,232
+3.7%
Base
₩208,224
+139.3%
Bull
₩413,992
+375.9%

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 (5.3%).

Revenue growth

  • 18.3%

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

    Default: the last 3 years' revenue growth (18.3% a year, annual reports), fading to 3% by year 5.

  • 14.5%

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

    Default: the last 3 years' revenue growth (18.3% a year, annual reports), fading to 3% by year 5.

  • 10.7%

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

    Default: the last 3 years' revenue growth (18.3% a year, annual reports), fading to 3% by year 5.

  • 6.8%

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

    Default: the last 3 years' revenue growth (18.3% 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 (18.3% a year, annual reports), fading to 3% by year 5.

Business

  • 5.3%

    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.

  • 2.4%

    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).

  • 4.9%

    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).

  • 2.3%

    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.

  • 4.08%

    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.

  • 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 0.25, 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.

  • 5.58%

    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)
₩698B
Net debt (borrowings and leases − cash and deposits)
−₩61B
+ Stakes and investments
₩9.2B
Associates, long-term financial assets and deposits (book value)
Shares
3,166,355
Share price
₩87,000
Market cap
₩275B

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₩545B₩627B₩663B₩826B₩945B₩1T₩1.1T₩1.2T
Growth36.0%15.0%5.9%18.3%14.5%10.7%6.8%3.0%
EBIT₩34B₩45B₩47B₩44B₩50B₩55B₩59B₩61B
EBIT margin6.2%7.2%7.1%5.3%5.3%5.3%5.3%5.3%
After-tax EBIT₩25B₩33B₩34B₩32B₩36B₩40B₩43B₩44B
+ Depreciation₩13B₩15B₩17B₩20B₩23B₩25B₩27B₩28B
− Capital spending₩24B₩35B₩31B₩40B₩46B₩51B₩55B₩56B
− Working capital−₩98B₩1.6B₩26B₩2.9B₩2.8B₩2.3B₩1.6B₩771M
Free cash flow₩111B₩11B−₩5.4B₩8.1B₩9.9B₩12B₩13B₩15B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩7.6B₩8.6B₩9.5B₩10B₩10B

Terminal value ₩776B, worth ₩544B today: 92% 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 ₩135,078 a share)Now 0.64×₩51,6860.38×₩63,3440.47×₩84,5050.63×
Price / earnings (last 12 months: ₩14,487 a share)Now 6.01×₩54,1123.74×₩84,0755.80×₩407,96028.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩13,054 a share)Now 6.66×₩48,7573.74×₩75,7555.80×₩367,58828.2×

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%₩216,270₩234,975₩257,943₩286,821₩324,231
6.9%₩197,007₩212,197₩230,494₩252,959₩281,206
7.4%₩180,829₩193,365₩208,224₩226,123₩248,099
7.9%₩167,063₩177,549₩189,812₩204,349₩221,859
8.4%₩155,217₩164,090₩174,348₩186,347₩200,569

Now (TTM)

Market cap
₩275B
Enterprise value
₩172B
P/E
6.0×
P/B
0.6×
P/S
0.4×
EV/EBITDA
2.4×
Dividend yield
1.1%

Over time (at each year end)

20252024202320222021
Price₩65,000₩56,800₩49,500₩40,250₩43,850
Market cap₩206B₩180B₩157B₩127B₩139B
P/E5.1×4.4×5.0×22.1×42.7×
P/B0.5×0.5×0.4×0.4×0.5×
P/S0.3×0.3×0.3×0.3×0.4×
EV/EBITDA1.9×1.1×0.6×6.2×2.7×
Dividend yield1.5%1.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea Airport Service6.0×0.6×0.4×2.4×1.1%
HMM14.6×0.7×1.8×—3.2%
Hyundai Glovis9.1×1.3×0.4×—3.1%
Pan Ocean9.0×0.5×0.5×—2.6%
CJ Logistics6.6×0.4×0.1×—1.2%
Korea Line3.4×0.2×0.5×—0.0%
Heung-A Shipping17.4×1.5×2.3×—0.0%
Similar companies (median)9.1×0.6×0.5×—1.9%

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

Also known as: Korea Airport Service / 한국공항 / 005430 / KRX:005430

Source: KRX statistical information