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Daewon

007680 · KOSDAQ · ₩007680 · 대원

₩2,990▼ ₩145 (4.63%)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

With these assumptions the model gives no positive value.

Enterprise value
−₩82B
Equity value
−₩140B
WACC
5.4%

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

  • To match today's price of ₩2,990, the model needs an operating margin of 6.0% every year (it uses −4.0%).
  • Margins ranged from −14.2% to 7.8% 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 (−4.0%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-32.1% 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 (-32.1% 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 (-32.1% 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 (-32.1% 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 (-32.1% 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.

  • 0.3%

    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).

  • 0.1%

    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 0.09, 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)
₩107B
Net debt (borrowings and leases − cash and deposits)
₩63B
+ Stakes and investments
₩5.9B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.3B
Shares
13,222,738
Share price
₩2,990
Market cap
₩40B

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₩436B₩277B₩112B₩97B₩90B₩87B₩87B₩89B
Growth21.7%−36.4%−59.5%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩62B₩195M−₩14B−₩3.9B−₩3.6B−₩3.5B−₩3.5B−₩3.6B
EBIT margin−14.2%0.1%−12.3%−4.0%−4.0%−4.0%−4.0%−4.0%
After-tax EBIT−₩45B₩142M−₩10B−₩2.8B−₩2.6B−₩2.5B−₩2.5B−₩2.6B
+ Depreciation₩767M₩662M₩619M₩290M₩270M₩261M₩260M₩268M
− Capital spending₩254M₩189M₩33M₩97M₩90M₩87M₩87M₩89M
− Working capital−₩5.8B₩7.4B₩46B−₩4.3B−₩2.6B−₩1.3B−₩70M₩1B
Free cash flow−₩39B−₩6.8B−₩55B₩1.7B₩155M−₩1.1B−₩2.3B−₩3.5B
Discount factor———0.9490.9010.8550.8120.770
Present value———₩1.6B₩140M−₩929M−₩1.8B−₩2.7B

Terminal value −₩101B, worth −₩78B today: 95% 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 ₩21,298 a share)Now 0.14×₩3,8660.18×₩4,5880.22×₩8,2420.39×

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%
4.4%—————
4.9%—————
5.4%—————
5.9%—————
6.4%—————

Now (TTM)

Market cap
₩40B
Enterprise value
₩103B
P/E
—
P/B
0.1×
P/S
0.4×
EV/EBITDA
—
Dividend yield
6.7%

Over time (at each year end)

20252024202320222021
Price₩4,415₩4,055₩5,220₩7,020₩9,380
Market cap₩58B₩54B₩69B₩93B₩124B
P/E—19.0×—4.8×4.1×
P/B0.2×0.2×0.2×0.3×0.4×
P/S0.5×0.2×0.2×0.3×0.4×
EV/EBITDA—89.2×—1.1×1.6×
Dividend yield4.5%3.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Daewon—0.1×0.4×—6.7%
Hyundai Engineering & Construction23.7×1.1×0.4×—0.8%
Daewoo Engineering & Construction—1.5×0.8×—0.0%
GS Engineering & Construction19.7×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.8×0.5×0.4×—2.9%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Daewon / 대원 / 007680 / KRX:007680

Source: KRX statistical information