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Samsung Climate Control

006660 · KOSPI · ₩006660 · 삼성공조

₩11,030▲ ₩390 (3.67%)End-of-day · Oct 28, 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

₩34,631

vs the current price (₩11,030)

Enterprise value
₩49B
Equity value
₩281B
WACC
7.4%

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 214% 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 ₩11,030, the model needs an operating margin of −6.7% every year (it uses 4.0%).
  • 77% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
  • Today's P/E is 7.8× against a typical 8.8× 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
₩30,525
+176.7%
Base
₩34,631
+214.0%
Bull
₩42,320
+283.7%

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 (4.0%).

Revenue growth

  • 7.1%

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

    Default: the last 3 years' revenue growth (7.1% a year, annual reports), fading to 3% by year 5.

  • 6.1%

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

    Default: the last 3 years' revenue growth (7.1% a year, annual reports), fading to 3% by year 5.

  • 5.1%

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

    Default: the last 3 years' revenue growth (7.1% a year, annual reports), fading to 3% by year 5.

  • 4%

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

    Default: the last 3 years' revenue growth (7.1% 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 (7.1% a year, annual reports), fading to 3% by year 5.

Business

  • 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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 2.6%

    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).

  • 1.1%

    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.

  • 4.11%

    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.

  • 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 0.31, 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.

  • 5.61%

    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)
₩114B
Net debt (borrowings and leases − cash and deposits)
−₩212B
+ Stakes and investments
₩23B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩2.7B
Shares
8,126,314
Share price
₩11,030
Market cap
₩90B

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₩126B₩116B₩118B₩122B₩130B₩136B₩142B₩146B
Growth31.5%−8.0%1.7%7.1%6.1%5.1%4.0%3.0%
EBIT₩5.4B₩6.5B₩3.2B₩4.9B₩5.2B₩5.5B₩5.7B₩5.8B
EBIT margin4.3%5.6%2.8%4.0%4.0%4.0%4.0%4.0%
After-tax EBIT₩3.9B₩4.7B₩2.4B₩3.5B₩3.8B₩4B₩4.1B₩4.2B
+ Depreciation₩3.2B——₩3.2B₩3.4B₩3.5B₩3.7B₩3.8B
− Capital spending—₩1.2B₩1.3B₩1.3B₩1.4B₩1.5B₩1.6B₩1.6B
− Working capital−₩139B₩3B₩200B₩3.2B₩3B₩2.6B₩2.2B₩1.7B
Free cash flow———₩2.1B₩2.7B₩3.4B₩4.1B₩4.7B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩2B₩2.4B₩2.7B₩3B₩3.3B

Terminal value ₩51B, worth ₩35B today: 73% 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 ₩37,041 a share)Now 0.30×₩9,8210.27×₩13,9400.38×₩19,5320.53×
Price / earnings (last 12 months: ₩1,413 a share)Now 7.80×₩2,4661.74×₩12,5048.85×₩36,44625.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,070 a share)Now 3.59×₩5,3561.74×₩27,1638.85×₩79,17025.8×

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%
6.4%₩35,830₩35,877₩35,928₩35,985₩36,052
6.9%₩35,221₩35,220₩35,214₩35,201₩35,177
7.4%₩34,707₩34,674₩34,631₩34,574₩34,498
7.9%₩34,267₩34,213₩34,146₩34,062₩33,956
8.4%₩33,885₩33,817₩33,735₩33,635₩33,512

Now (TTM)

Market cap
₩90B
Enterprise value
−₩123B
P/E
7.8×
P/B
0.3×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.7%

Over time (at each year end)

20252024202320222021
Price₩14,190₩8,890₩8,740₩9,750₩16,800
Market cap₩115B₩72B₩71B₩79B₩137B
P/E16.2×5.0×5.1×1.9×—
P/B0.4×0.3×0.3×0.3×0.6×
P/S1.0×0.6×0.6×0.8×1.7×
EV/EBITDA———5.5×29.5×
Dividend yield0.6%0.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Samsung Climate Control7.8×0.3×0.8×—0.7%
Hyundai Mobis8.7×0.6×0.5×—1.8%
SL6.1×0.9×0.4×3.7×0.0%
HL Mando10.7×0.6×0.2×—1.9%
Samhyun—13.4×18.9×—0.0%
Hyundai WIA19.3×0.4×0.2×—2.4%
SNT Dynamics13.4×0.7×0.9×—6.8%
Similar companies (median)10.7×0.7×0.5×3.7×1.9%

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

Also known as: Samsung Climate Control / 삼성공조 / 006660 / KRX:006660

Source: KRX statistical information