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Daelim Trading

006570 · KOSPI · ₩006570 · 대림통상

₩1,850▼ ₩21 (1.12%)End-of-day · Oct 29, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩95B
Equity value
−₩175B
WACC
4.9%

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

  • To match today's price of ₩1,850, the model needs an operating margin of 5.3% every year (it uses −2.5%).
  • Margins ranged from −7.6% to 4.0% 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.
  • 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

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (−2.5%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-10.2% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-10.2% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-10.2% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-10.2% 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 (-10.2% a year, annual reports), fading to 3% by year 5.

Business

  • -2.5%

    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.

  • 2.4%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 3.5%

    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).

  • 40%

    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.

  • 4.08%

    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.

  • 0.6

    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 -0.05, 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.

  • 5.58%

    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)
₩135B
Net debt (borrowings and leases − cash and deposits)
₩81B
+ Stakes and investments
₩947M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩286M
Shares
15,225,000
Share price
₩1,850
Market cap
₩28B

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₩146B₩137B₩126B₩122B₩114B₩110B₩109B₩113B
Growth−16.3%−6.0%−7.9%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩4.9B−₩3.4B−₩9.6B−₩3B−₩2.8B−₩2.7B−₩2.7B−₩2.8B
EBIT margin−3.4%−2.5%−7.6%−2.5%−2.5%−2.5%−2.5%−2.5%
After-tax EBIT−₩3.6B−₩2.5B−₩6.9B−₩2.2B−₩2.1B−₩2B−₩2B−₩2B
+ Depreciation₩2.9B₩3.3B₩3.4B₩2.9B₩2.7B₩2.6B₩2.6B₩2.7B
− Capital spending₩6.4B₩2.7B₩5.3B₩4.3B₩4B₩3.8B₩3.8B₩3.9B
− Working capital−₩3.7B₩5.2B−₩9.2B−₩5.4B−₩3.3B−₩1.6B−₩88M₩1.3B
Free cash flow−₩3.4B−₩7.1B₩359M₩1.9B−₩45M−₩1.6B−₩3.1B−₩4.6B
Discount factor———0.9530.9090.8660.8260.787
Present value———₩1.8B−₩41M−₩1.4B−₩2.6B−₩3.6B

Terminal value −₩113B, worth −₩89B today: 94% 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 ₩2,153 a share)Now 0.86×₩1,3240.62×₩1,5180.70×₩1,8440.86×

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%
3.9%—————
4.4%—————
4.9%—————
5.4%—————
5.9%—————

Now (TTM)

Market cap
₩28B
Enterprise value
₩108B
P/E
—
P/B
0.9×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,240₩2,605₩2,975₩3,570₩3,525
Market cap₩34B₩40B₩45B₩54B₩54B
P/E———14.3×188.3×
P/B0.9×0.7×0.6×0.7×0.7×
P/S0.3×0.3×0.3×0.3×0.3×
EV/EBITDA———11.2×22.6×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Daelim Trading—0.9×0.2×—0.0%
CS Wind372.3×1.3×0.6×—2.6%
Hankuk Carbon7.8×1.2×0.9×—2.1%
Taewoong63.8×0.8×1.3×20.4×0.0%
YG-15.3×0.8×0.5×—1.8%
Bosung Power Technology18.9×2.1×1.8×8.6×0.0%
Hansun Engineering36.1×2.6×3.0×14.4×0.0%
Similar companies (median)27.5×1.2×1.1×14.4×0.9%

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

Also known as: Daelim Trading / 대림통상 / 006570 / KRX:006570

Source: KRX statistical information