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PJ Electronics

006140 · KOSDAQ · ₩006140 · 피제이전자

₩4,730▲ ₩25 (0.53%)End-of-day · Oct 27, 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

₩8,239

vs the current price (₩4,730)

Enterprise value
₩108B
Equity value
₩122B
WACC
7.5%

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 74% 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 ₩4,730, the model needs an operating margin of 3.3% every year (it uses 5.2%).
  • 44% 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 6.2× against a typical 12.5× 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
₩3,886
−17.8%
Base
₩8,239
+74.2%
Bull
₩16,051
+239.4%

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 (5.2%).

Revenue growth

  • 4.2%

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

    Default: the last 3 years' revenue growth (4.2% 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 (4.2% a year, annual reports), fading to 3% by year 5.

  • 3.6%

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

    Default: the last 3 years' revenue growth (4.2% a year, annual reports), fading to 3% by year 5.

  • 3.3%

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

    Default: the last 3 years' revenue growth (4.2% 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 (4.2% a year, annual reports), fading to 3% by year 5.

Business

  • 5.2%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 2.7%

    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).

  • 3.4%

    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).

  • 26.8%

    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

  • 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.

  • 0.62

    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 0.44, 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)
₩196B
Net debt (borrowings and leases − cash and deposits)
−₩15B
Shares
14,865,000
Share price
₩4,730
Market cap
₩70B

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₩167B₩169B₩179B₩204B₩212B₩220B₩227B₩234B
Growth5.8%1.5%5.5%4.2%3.9%3.6%3.3%3.0%
EBIT₩7.4B₩11B₩11B₩11B₩11B₩11B₩12B₩12B
EBIT margin4.4%6.4%6.1%5.2%5.2%5.2%5.2%5.2%
After-tax EBIT₩5.4B₩7.8B₩7.9B₩7.7B₩8B₩8.3B₩8.5B₩8.8B
+ Depreciation———₩5.5B₩5.7B₩5.9B₩6.1B₩6.3B
− Capital spending₩6B₩6B₩5.3B₩6.9B₩7.2B₩7.5B₩7.7B₩7.9B
− Working capital₩7.2B−₩8.3B−₩13B₩2.2B₩2.1B₩2B₩1.9B₩1.8B
Free cash flow———₩4.1B₩4.4B₩4.7B₩5B₩5.3B
Discount factor———0.9300.8650.8050.7480.696
Present value———₩3.8B₩3.8B₩3.8B₩3.8B₩3.7B

Terminal value ₩128B, worth ₩89B today: 83% 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 ₩9,559 a share)Now 0.49×₩4,9960.52×₩7,0530.74×₩9,5491.00×
Price / earnings (last 12 months: ₩762 a share)Now 6.21×₩5,5107.23×₩9,50212.5×₩19,66025.8×

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%
6.5%₩9,062₩9,464₩9,951₩10,556₩11,328
7.0%₩8,337₩8,644₩9,009₩9,452₩10,001
7.5%₩7,724₩7,962₩8,239₩8,569₩8,969
8.0%₩7,200₩7,385₩7,598₩7,847₩8,143
8.5%₩6,746₩6,891₩7,056₩7,246₩7,467

Now (TTM)

Market cap
₩70B
Enterprise value
₩56B
P/E
6.2×
P/B
0.5×
P/S
0.4×
EV/EBITDA
—
Dividend yield
4.2%

Over time (at each year end)

20252024202320222021
Price₩5,690₩4,500₩6,700₩5,610₩7,890
Market cap₩85B₩67B₩100B₩83B₩117B
P/E9.0×7.3×16.3×12.0×14.3×
P/B0.6×0.5×0.8×0.7×1.0×
P/S0.5×0.4×0.6×0.5×1.0×
EV/EBITDA—————
Dividend yield3.5%4.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
PJ Electronics6.2×0.5×0.4×—4.2%
TSE27.5×6.1×5.1×—0.2%
Kctech20.8×3.2×3.8×16.1×0.5%
Classys12.6×3.1×4.7×9.8×3.8%
Park Systems68.1×4.6×8.1×—0.2%
Curiox Biosystems—21.9×187.1×—0.0%
DI36.7×5.0×2.2×—0.7%
Similar companies (median)27.5×4.8×4.9×13.0×0.4%

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

Also known as: PJ Electronics / 피제이전자 / 006140 / KRX:006140

Source: KRX statistical information