KOSPI · 006360 · Construction · ₩006360

GS Engineering & ConstructionGS건설

006360 · KOSPI · ₩006360 · GS건설

₩29,400▼ ₩600 (2.00%)End-of-day · Oct 29, 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

₩78,872

vs the current price (₩29,400)

Enterprise value: ₩4.4T
Equity value: ₩6.7T
WACC: 7.9%

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 168% 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 ₩29,400, the model needs an operating margin of 0.4% every year (it uses 3.4%).
Analysts' forecasts for 2026: revenue ₩11T, operating profit ₩415B (3.8% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩12T, operating profit ₩607B (5.2% margin) (1 broker). The model starts from the last 12 months reported.
Margins ranged from −2.9% to 7.2% 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.
Today's P/E is 19.3× against a typical 9.7× 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: ₩39,719; +35.1%
Base: ₩78,872; +168.3%
Bull: ₩145,337; +394.3%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (3.4%).

Revenue growth

Revenue growth, year 10.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 21.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.4% 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 (0.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.4%
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 & amortisation2.7%
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).
Capital spending3.4%
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).
Working capital-10%
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.
Beta0.7
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 0.55, 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): ₩11T
Net debt (borrowings and leases − cash and deposits): −₩2.5T
+ Stakes and investments: ₩669B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩774B
Shares: 85,581,490
Share price: ₩29,400
Market cap: ₩2.5T

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	₩13T	₩13T	₩12T	₩11T	₩12T	₩12T	₩12T	₩12T
Growth	9.2%	−4.3%	−3.2%	0.4%	1.1%	1.7%	2.4%	3.0%
EBIT	−₩388B	₩286B	₩438B	₩388B	₩392B	₩399B	₩409B	₩421B
EBIT margin	−2.9%	2.2%	3.5%	3.4%	3.4%	3.4%	3.4%	3.4%
After-tax EBIT	−₩281B	₩207B	₩317B	₩281B	₩285B	₩289B	₩296B	₩305B
+ Depreciation	—	—	—	₩308B	₩312B	₩317B	₩325B	₩334B
− Capital spending	₩505B	₩527B	₩295B	₩388B	₩392B	₩399B	₩409B	₩421B
− Working capital	−₩3.1T	−₩889B	₩675B	−₩4.5B	−₩13B	−₩20B	−₩28B	−₩36B
Free cash flow	—	—	—	₩206B	₩216B	₩227B	₩240B	₩255B
Discount factor	—	—	—	0.927	0.858	0.795	0.737	0.683
Present value	—	—	—	₩191B	₩186B	₩180B	₩177B	₩174B

Terminal value ₩5.1T, worth ₩3.5T today: 79% 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 ₩57,143 a share)Now 0.51×	₩16,0620.28×	₩21,4270.37×	₩41,3780.72×
Price / earnings (last 12 months: ₩1,525 a share)Now 19.3×	₩5,8443.83×	₩14,8239.72×	₩61,04040.0×
P/E on run-rate earnings (preliminary Q3 2026 × 4: ₩4,458 a share)Now 6.60×	₩17,0843.83×	₩43,3359.72×	₩178,44940.0×

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%
6.9%	₩78,927	₩83,836	₩89,750	₩97,012	₩106,134
7.4%	₩74,773	₩78,905	₩83,808	₩89,715	₩96,966
7.9%	₩71,221	₩74,745	₩78,872	₩83,767	₩89,665
8.4%	₩68,151	₩71,190	₩74,708	₩78,828	₩83,715
8.9%	₩65,471	₩68,116	₩71,149	₩74,661	₩78,773

Now (TTM)

Market cap: ₩2.5T
Enterprise value: ₩51B
P/E: 19.3×
P/B: 0.5×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 1.7%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩19,700	₩17,350	₩15,020	₩21,150	₩39,600
Market cap	₩1.7T	₩1.5T	₩1.3T	₩1.8T	₩3.4T
P/E	18.0×	6.0×	—	5.3×	8.3×
P/B	0.4×	0.3×	0.3×	0.4×	0.7×
P/S	0.1×	0.1×	0.1×	0.1×	0.4×
EV/EBITDA	—	—	—	—	—
Dividend yield	2.5%	1.7%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
GS Engineering & Construction	19.3×	0.5×	0.2×	—	1.7%
Hyundai Engineering & Construction	22.7×	1.1×	0.4×	—	0.9%
Daewoo Engineering & Construction	—	1.3×	0.6×	—	0.0%
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	8.9×	0.5×	0.4×	—	2.8%
LS Marine Solution	122.6×	2.2×	4.9×	—	0.0%
Similar companies (median)	14.4×	1.2×	0.5×	8.1×	0.4%

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

Also known as: GS Engineering & Construction / GS건설 / 006360 / KRX:006360

Source: KRX statistical information