KOSPI · 006260 · Holding companies · ₩006260

LSLS

006260 · KOSPI · ₩006260 · LS

₩222,000▲ ₩6,000 (2.78%)End-of-day · Oct 28, 2026 · End-of-day prices.

Valuation model · Discounted cash flow (DCF)

This is a holding company, but we don't have its stakes in listed companies yet, so we use a discounted cash flow for now.

Fair value per share

₩311,646

vs the current price (₩222,000)

Enterprise value: ₩14T
Equity value: ₩9.7T
WACC: 8.6%

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 40% 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 ₩222,000, the model needs an operating margin of 3.5% every year (it uses 3.9%).
Or revenue growth −12.9 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 16.2× against a typical 8.3× 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: ₩311,646; +40.4%
Bull: ₩1,038,708; +367.9%

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 (3.9%).

Revenue growth

Revenue growth, year 122.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (22.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 217.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (22.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 312.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (22.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 47.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (22.1% 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 (22.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.9%
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.
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 & amortisation2.6%
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 spending3.2%
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 capital22.5%
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 rate4.11%
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.
Beta1.07
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 1.1, 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)5.61%
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): ₩38T
Net debt (borrowings and leases − cash and deposits): ₩2.2T
+ Stakes and investments: ₩439B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩2.8T
Shares: 31,200,000
Share price: ₩222,000
Market cap: ₩6.9T

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	₩24T	₩28T	₩32T	₩46T	₩54T	₩61T	₩65T	₩67T
Growth	40.0%	12.5%	15.7%	22.1%	17.4%	12.6%	7.8%	3.0%
EBIT	₩900B	₩1.1T	₩1.1T	₩1.8T	₩2.1T	₩2.4T	₩2.6T	₩2.6T
EBIT margin	3.7%	3.9%	3.3%	3.9%	3.9%	3.9%	3.9%	3.9%
After-tax EBIT	₩652B	₩778B	₩763B	₩1.3T	₩1.5T	₩1.7T	₩1.9T	₩1.9T
+ Depreciation	—	—	—	₩1.2T	₩1.4T	₩1.6T	₩1.7T	₩1.8T
− Capital spending	₩652B	₩924B	₩1.2T	₩1.5T	₩1.7T	₩1.9T	₩2.1T	₩2.2T
− Working capital	₩72B	₩407B	−₩836B	₩1.9T	₩1.8T	₩1.5T	₩1.1T	₩442B
Free cash flow	—	—	—	−₩848B	−₩597B	−₩176B	₩393B	₩1.1T
Discount factor	—	—	—	0.921	0.848	0.782	0.720	0.663
Present value	—	—	—	−₩781B	−₩507B	−₩138B	₩283B	₩703B

Terminal value ₩22T, worth ₩15T 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:

	Low	Typical	High
Price / book (book value ₩169,448 a share)Now 1.31×	₩85,9860.51×	₩123,1240.73×	₩279,1051.65×
Price / earnings (last 12 months: ₩13,717 a share)Now 16.2×	₩75,5925.51×	₩113,1988.25×	₩403,22029.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩24,156 a share)Now 9.19×	₩133,1165.51×	₩199,3418.25×	₩710,06729.4×

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%
7.6%	₩381,891	₩401,163	₩423,598	₩450,131	₩482,110
8.1%	₩331,649	₩346,191	₩362,860	₩382,229	₩405,100
8.6%	₩288,311	₩299,266	₩311,646	₩325,801	₩342,212
9.1%	₩250,585	₩258,786	₩267,925	₩278,217	₩289,946
9.6%	₩217,481	₩223,544	₩230,205	₩237,591	₩245,868

Now (TTM)

Market cap: ₩6.9T
Enterprise value: ₩9T
P/E: 16.2×
P/B: 1.3×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩199,900	₩94,300	₩93,200	₩69,700	₩54,100
Market cap	₩6.2T	₩2.9T	₩2.9T	₩2.2T	₩1.7T
P/E	23.0×	12.4×	6.7×	4.8×	6.1×
P/B	1.2×	0.6×	0.6×	0.5×	0.5×
P/S	0.2×	0.1×	0.1×	0.1×	0.1×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
LS	16.2×	1.3×	0.2×	—	0.0%
SK Square	3.7×	2.2×	98.7×	3.6×	0.0%
KB Financial Group	8.7×	0.9×	—	9.5×	2.8%
Shinhan Financial Group	7.7×	0.7×	—	10.1×	2.9%
SK	4.9×	1.1×	0.3×	—	1.5%
Hana Financial Group	7.6×	0.7×	—	9.9×	3.6%
Woori Financial Group	6.9×	0.6×	—	8.3×	4.5%
Similar companies (median)	7.3×	0.8×	49.5×	9.5×	2.9%

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

Also known as: LS / 006260 / KRX:006260

Source: KRX statistical information