KOSPI · 005960 · Construction · ₩005960

Dongbu동부건설

005960 · KOSPI · ₩005960 · 동부건설

₩7,950▼ ₩10 (0.13%)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

₩26,490

vs the current price (₩7,950)

Enterprise value: ₩822B
Equity value: ₩614B
WACC: 5.2%

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 233% 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 ₩7,950, the model needs an operating margin of 1.6% every year (it uses 2.4%).
Margins ranged from −5.7% to 5.4% 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.
51% 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 2.3× against a typical 3.1× 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: ₩26,490; +233.2%
Bull: ₩122,083; +1,435.6%

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 (2.4%).

Revenue growth

Revenue growth, year 16.4%
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 25.5%
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 34.7%
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 43.8%
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 margin2.4%
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 & amortisation0.2%
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 spending0.2%
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 capital23.8%
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.
Beta0.69
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 0.54, 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): ₩2T
Net debt (borrowings and leases − cash and deposits): ₩427B
+ Stakes and investments: ₩219B; Associates, long-term financial assets and deposits (book value)
Shares: 23,172,395; incl. 225,732 preferred
Share price: ₩7,950
Market cap: ₩186B

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	₩1.9T	₩1.7T	₩1.8T	₩2.1T	₩2.2T	₩2.3T	₩2.4T	₩2.5T
Growth	30.0%	−11.1%	4.2%	6.4%	5.5%	4.7%	3.8%	3.0%
EBIT	₩30B	−₩97B	₩43B	₩50B	₩53B	₩55B	₩57B	₩59B
EBIT margin	1.6%	−5.7%	2.4%	2.4%	2.4%	2.4%	2.4%	2.4%
After-tax EBIT	₩22B	−₩70B	₩31B	₩36B	₩38B	₩40B	₩42B	₩43B
+ Depreciation	—	—	—	₩4.2B	₩4.4B	₩4.6B	₩4.8B	₩4.9B
− Capital spending	₩6.7B	₩4.9B	₩1.7B	₩4.2B	₩4.4B	₩4.6B	₩4.8B	₩4.9B
− Working capital	−₩48B	−₩203B	−₩5.7B	₩30B	₩27B	₩25B	₩21B	₩17B
Free cash flow	—	—	—	₩6.4B	₩11B	₩15B	₩21B	₩26B
Discount factor	—	—	—	0.950	0.903	0.859	0.816	0.776
Present value	—	—	—	₩6.1B	₩9.9B	₩13B	₩17B	₩20B

Terminal value ₩974B, worth ₩756B 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:

	Low	Typical	High
Price / book (book value ₩25,596 a share)Now 0.31×	₩5,1490.20×	₩6,7850.27×	₩14,1410.55×
Price / earnings (last 12 months: ₩3,465 a share)Now 2.29×	₩6,5501.89×	₩10,8583.13×	₩99,08628.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,043 a share)Now 1.97×	₩7,6431.89×	₩12,6703.13×	₩115,62328.6×

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%
4.2%	₩34,326	₩38,153	₩43,665	₩52,344	₩68,117
4.7%	₩28,012	₩30,339	₩33,487	₩38,016	₩45,136
5.2%	₩23,208	₩24,641	₩26,490	₩28,984	₩32,564
5.7%	₩19,433	₩20,305	₩21,386	₩22,774	₩24,639
6.2%	₩16,391	₩16,897	₩17,501	₩18,243	₩19,187

Now (TTM)

Market cap: ₩182B
Enterprise value: ₩571B
P/E: 2.3×
P/B: 0.3×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 3.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩5,630	₩3,825	₩5,870	₩7,260	₩14,600
Market cap	₩129B	₩88B	₩135B	₩167B	₩335B
P/E	2.5×	—	—	4.2×	2.9×
P/B	0.2×	0.2×	0.2×	0.3×	0.6×
P/S	0.1×	0.1×	0.1×	0.1×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	5.3%	5.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Dongbu	2.3×	0.3×	0.1×	—	3.8%
Hyundai Engineering & Construction	23.7×	1.1×	0.4×	—	0.8%
Daewoo Engineering & Construction	—	1.5×	0.8×	—	0.0%
GS Engineering & Construction	19.7×	0.5×	0.2×	—	1.7%
DL E&C	3.6×	0.4×	0.3×	—	1.5%
KEPCO Plant Service & Engineering	14.4×	1.4×	1.2×	8.1×	0.0%
Ipark Hyundai Development	8.8×	0.5×	0.4×	—	2.9%
Similar companies (median)	14.4×	0.8×	0.4×	8.1×	1.2%

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

Also known as: Dongbu / 동부건설 / 005960 / KRX:005960

Source: KRX statistical information