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Korea Circuit

007810 · KOSPI · ₩007810 · 코리아써키트

₩80,300▲ ₩5,000 (6.64%)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
₩428B
Equity value
−₩155B
WACC
9.7%

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 ₩80,300, the model needs an operating margin of 19.4% every year (it uses 3.2%).
  • Margins ranged from −2.4% to 6.2% 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.
  • Today's P/E is 26.2× against a typical 14.1× 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
—
Base
—
Bull
₩10,483
−86.9%

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 (3.2%).

Revenue growth

  • -1.9%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.9% 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 (-1.9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.2%

    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.

  • 6.5%

    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).

  • 4.8%

    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).

  • 19.3%

    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.

  • 1.17

    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 1.26, 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)
₩1.7T
Net debt (borrowings and leases − cash and deposits)
₩279B
+ Stakes and investments
₩2.3B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩307B
Shares
27,731,009
incl. 3,748,389 preferred
Share price
₩80,300
Market cap
₩2T

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₩1.3T₩1.4T₩1.5T₩1.6T₩1.6T₩1.6T₩1.6T₩1.7T
Growth−16.6%5.6%7.3%−1.9%−0.6%0.6%1.8%3.0%
EBIT−₩32B−₩33B₩54B₩52B₩52B₩52B₩53B₩54B
EBIT margin−2.4%−2.4%3.6%3.2%3.2%3.2%3.2%3.2%
After-tax EBIT−₩23B−₩24B₩39B₩38B₩37B₩38B₩38B₩39B
+ Depreciation₩94B₩112B₩65B₩105B₩105B₩105B₩107B₩110B
− Capital spending₩78B₩50B₩77B₩78B₩77B₩78B₩79B₩82B
− Working capital₩7.2B−₩15B₩125B−₩6.1B−₩1.9B₩1.9B₩5.6B₩9.5B
Free cash flow−₩14B₩53B−₩98B₩71B₩67B₩63B₩61B₩59B
Discount factor———0.9110.8310.7570.6900.629
Present value———₩65B₩55B₩48B₩42B₩37B

Terminal value ₩288B, worth ₩181B today: 42% 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 ₩17,816 a share)Now 4.51×₩13,1560.74×₩18,7461.05×₩78,6304.41×
Price / earnings (last 12 months: ₩3,066 a share)Now 26.2×₩13,5414.42×₩43,15414.1×₩117,42838.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,986 a share)Now 26.9×₩13,1884.42×₩42,03014.1×₩114,36838.3×

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%
8.7%—————
9.2%—————
9.7%—————
10.2%—————
10.7%—————

Now (TTM)

Market cap
₩1.9T
Enterprise value
₩2.2T
P/E
22.7×
P/B
3.9×
P/S
1.2×
EV/EBITDA
13.9×
Dividend yield
0.1%

Over time (at each year end)

20252024202320222021
Price₩48,300₩9,120₩19,990₩12,000₩31,200
Market cap₩1.2T₩219B₩479B₩288B₩748B
P/E24.5×——4.2×13.3×
P/B2.6×0.6×1.1×0.6×1.8×
P/S0.8×0.2×0.4×0.2×0.5×
EV/EBITDA11.7×4.8×10.4×2.9×6.5×
Dividend yield0.2%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea Circuit22.7×3.9×1.2×13.9×0.1%
Samsung Electro-Mechanics96.8×9.5×7.8×—0.2%
Doosan39.2×5.5×0.7×—0.4%
Hanwha Systems71.2×2.8×3.0×—0.8%
LG Innotek13.1×1.4×0.4×—0.5%
Isupetasys35.4×8.3×5.4×—0.0%
Daeduck Electronics44.8×7.0×5.0×—0.4%
Similar companies (median)42.0×6.3×4.0×—0.4%

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

Also known as: Korea Circuit / 코리아써키트 / 007810 / KRX:007810

Source: KRX statistical information