KOSPI · 006490 · Telecom · ₩006490

FreeT프리티

006490 · KOSPI · ₩006490 · 프리티

₩929▼ ₩47 (4.82%)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

With these assumptions the model gives no positive value.

Enterprise value: −₩22B
Equity value: −₩22B
WACC: 6.6%

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

To match today's price of ₩929, the model needs an operating margin of 0.8% every year (it uses −1.0%).
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: ₩1,638; +76.3%

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 (−1.0%).

Revenue growth

Revenue growth, year 111.2%
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 29.2%
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 37.1%
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 45.1%
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-1%
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 & amortisation0.8%
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 spending1%
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-1.7%
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.
Beta0.6
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 -0.97, 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): ₩102B
Net debt (borrowings and leases − cash and deposits): ₩5.4B
+ Stakes and investments: ₩6.8B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩767M
Shares: 17,746,333
Share price: ₩929
Market cap: ₩16B

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	₩100B	₩101B	₩106B	₩113B	₩123B	₩132B	₩139B	₩143B
Growth	30.2%	0.7%	5.0%	11.2%	9.2%	7.1%	5.1%	3.0%
EBIT	₩447M	−₩3.8B	₩4.1B	−₩1.1B	−₩1.2B	−₩1.3B	−₩1.4B	−₩1.4B
EBIT margin	0.4%	−3.8%	3.9%	−1.0%	−1.0%	−1.0%	−1.0%	−1.0%
After-tax EBIT	₩324M	−₩2.7B	₩3B	−₩819M	−₩895M	−₩958M	−₩1B	−₩1B
+ Depreciation	—	—	—	₩904M	₩987M	₩1.1B	₩1.1B	₩1.1B
− Capital spending	₩1.6B	₩511M	₩838M	₩1.1B	₩1.2B	₩1.3B	₩1.4B	₩1.4B
− Working capital	−₩112M	₩38M	₩4B	−₩193M	−₩177M	−₩149M	−₩115M	−₩71M
Free cash flow	—	—	—	−₩852M	−₩965M	−₩1.1B	−₩1.2B	−₩1.3B
Discount factor	—	—	—	0.938	0.881	0.827	0.776	0.728
Present value	—	—	—	−₩799M	−₩850M	−₩887M	−₩908M	−₩912M

Terminal value −₩25B, worth −₩18B today: 80% 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 ₩1,223 a share)Now 0.76×	₩2,9542.41×	₩4,2553.48×	₩7,6716.27×

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%
5.6%	—	—	—	—	—
6.1%	—	—	—	—	—
6.6%	—	—	—	—	—
7.1%	—	—	—	—	—
7.6%	—	—	—	—	—

Now (TTM)

Market cap: ₩16B
Enterprise value: ₩22B
P/E: —
P/B: 0.8×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩4,991	₩11,944	₩9,674	₩10,170	₩24,913
Market cap	₩89B	₩212B	₩172B	₩180B	₩442B
P/E	—	71.1×	—	—	83.4×
P/B	5.8×	4.5×	4.5×	2.9×	6.7×
P/S	0.8×	2.1×	1.7×	2.4×	6.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
FreeT	—	0.8×	0.2×	—	0.0%
SK Telecom	22.4×	1.1×	1.0×	5.0×	2.1%
KT	8.8×	0.6×	0.4×	—	5.3%
LG Uplus	10.9×	0.6×	0.4×	2.8×	0.0%
Hyundai Futurenet	36.6×	0.5×	1.2×	—	4.9%
NICE Information & Telecommunication	5.7×	0.8×	0.3×	1.8×	3.0%
Korea Information & Communication	7.9×	0.8×	0.3×	2.0×	3.8%
Similar companies (median)	9.9×	0.7×	0.4×	2.4×	3.4%

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

Also known as: FreeT / 프리티 / 006490 / KRX:006490

Source: KRX statistical information