KOSPI · 006370 · Retail & Trade · ₩006370

Daegu Department Store대구백화점

006370 · KOSPI · ₩006370 · 대구백화점

₩2,700▲ ₩5 (0.19%)End-of-day · Oct 27, 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

With these assumptions the model gives no positive value.

Enterprise value: −₩242B
Equity value: −₩498B
WACC: 4.3%

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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩2,700, the model needs an operating margin of 23.6% every year (it uses −20.0%).
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.

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: —
Bull: —

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 (−20.0%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-11.2% 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 (-11.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-20%
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 & amortisation0.5%
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 spending0.6%
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-5.8%
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 rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
Beta0.6
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 -0.07, 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)5.53%
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): ₩51B
Net debt (borrowings and leases − cash and deposits): ₩258B
+ Stakes and investments: ₩952M; Associates, long-term financial assets and deposits (book value)
Shares: 10,821,611
Share price: ₩2,700
Market cap: ₩29B

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	₩68B	₩60B	₩53B	₩46B	₩43B	₩41B	₩41B	₩42B
Growth	−10.9%	−11.5%	−11.3%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	−₩15B	−₩15B	−₩15B	−₩9.1B	−₩8.5B	−₩8.2B	−₩8.2B	−₩8.4B
EBIT margin	−22.4%	−25.0%	−28.2%	−20.0%	−20.0%	−20.0%	−20.0%	−20.0%
After-tax EBIT	−₩11B	−₩11B	−₩11B	−₩6.6B	−₩6.2B	−₩6B	−₩5.9B	−₩6.1B
+ Depreciation	—	—	—	₩228M	₩213M	₩205M	₩205M	₩211M
− Capital spending	₩503M	₩689M	₩2.6M	₩274M	₩255M	₩246M	₩246M	₩253M
− Working capital	₩4.2B	₩4.3B	₩2.3B	₩294M	₩177M	₩86M	₩4.8M	−₩71M
Free cash flow	—	—	—	−₩7B	−₩6.4B	−₩6.1B	−₩6B	−₩6.1B
Discount factor	—	—	—	0.958	0.918	0.880	0.843	0.808
Present value	—	—	—	−₩6.7B	−₩5.9B	−₩5.4B	−₩5.1B	−₩4.9B

Terminal value −₩265B, worth −₩214B today: 88% 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 ₩11,252 a share)Now 0.24×	₩4,0730.36×	₩5,0630.45×	₩5,8120.52×

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%
3.3%	—	—	—	—	—
3.8%	—	—	—	—	—
4.3%	—	—	—	—	—
4.8%	—	—	—	—	—
5.3%	—	—	—	—	—

Now (TTM)

Market cap: ₩29B
Enterprise value: ₩286B
P/E: —
P/B: 0.2×
P/S: 0.6×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩5,510	₩5,250	₩9,070	₩9,820	₩11,650
Market cap	₩60B	₩57B	₩98B	₩106B	₩126B
P/E	—	—	—	—	—
P/B	0.4×	0.3×	0.5×	0.5×	0.5×
P/S	1.1×	0.9×	1.5×	1.4×	1.5×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Daegu Department Store	—	0.2×	0.6×	—	0.0%
Samsung C&T	17.5×	0.5×	1.1×	—	0.9%
POSCO International	10.6×	1.3×	0.3×	—	3.7%
ISC	41.4×	5.5×	11.5×	—	0.6%
Youngone	5.1×	0.7×	0.7×	—	3.1%
Dong SUH Companies	19.0×	1.6×	5.1×	—	4.1%
Shinsegae	13.7×	0.4×	0.3×	—	2.1%
Similar companies (median)	15.6×	1.0×	0.9×	—	2.6%

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

Also known as: Daegu Department Store / 대구백화점 / 006370 / KRX:006370

Source: KRX statistical information