KBI Dong Yang Steel PipeKBI동양철관
008970 · KOSPI · ₩008970 · KBI동양철관
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
- ₩413M
- Equity value
- −₩18B
- WACC
- 7.3%
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 ₩1,255, the model needs an operating margin of 5.5% every year (it uses 0.9%).
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
- ₩611
- −51.3%
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 (0.9%).
Revenue growth
- -4.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.
- -2.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.
- -0.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.
- 1.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.1% 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 (-4.1% a year, annual reports), fading to 3% by year 5.
Business
- 0.9%
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: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).
- 3%
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).
- 23.8%
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.
- 4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
- 0.74
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 0.62, 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.
- 5.53%
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)
- ₩264B
- Net debt (borrowings and leases − cash and deposits)
- ₩30B
- + Stakes and investments
- ₩11B
- Associates, long-term financial assets and deposits (book value)
- Shares
- 103,766,907
- Share price
- ₩1,255
- Market cap
- ₩130B
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 | ₩278B | ₩250B | ₩235B | ₩253B | ₩247B | ₩246B | ₩249B | ₩256B |
| Growth | 4.6% | −10.1% | −6.2% | −4.1% | −2.3% | −0.5% | 1.2% | 3.0% |
| EBIT | ₩2.2B | ₩6.7B | −₩1.6B | ₩2.3B | ₩2.2B | ₩2.2B | ₩2.2B | ₩2.3B |
| EBIT margin | 0.8% | 2.7% | −0.7% | 0.9% | 0.9% | 0.9% | 0.9% | 0.9% |
| After-tax EBIT | ₩1.6B | ₩4.8B | −₩1.2B | ₩1.6B | ₩1.6B | ₩1.6B | ₩1.6B | ₩1.7B |
| + Depreciation | — | — | — | ₩6.1B | ₩5.9B | ₩5.9B | ₩6B | ₩6.1B |
| − Capital spending | ₩2.7B | ₩11B | ₩8.6B | ₩7.6B | ₩7.4B | ₩7.4B | ₩7.5B | ₩7.7B |
| − Working capital | −₩819M | −₩18B | ₩37B | −₩2.6B | −₩1.4B | −₩294M | ₩702M | ₩1.8B |
| Free cash flow | — | — | — | ₩2.7B | ₩1.5B | ₩423M | −₩571M | −₩1.6B |
| Discount factor | — | — | — | 0.932 | 0.868 | 0.809 | 0.753 | 0.702 |
| Present value | — | — | — | ₩2.5B | ₩1.3B | ₩342M | −₩430M | −₩1.2B |
Terminal value −₩3.1B, worth −₩2.2B today: -527% 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 ₩1,361 a share)Now 0.92× | ₩1,5631.15× | ₩2,8142.07× | ₩3,8062.80× |
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% |
|---|---|---|---|---|---|
| 6.3% | — | — | — | — | — |
| 6.8% | — | — | — | — | — |
| 7.3% | — | — | — | — | — |
| 7.8% | — | — | — | — | — |
| 8.3% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩130B
- Enterprise value
- ₩160B
- P/E
- —
- P/B
- 0.9×
- P/S
- 0.5×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩1,717 | ₩1,208 | ₩1,529 | ₩1,752 | ₩2,388 |
| Market cap | ₩178B | ₩125B | ₩159B | ₩182B | ₩248B |
| P/E | — | — | — | 45.8× | — |
| P/B | 1.3× | 1.2× | 1.8× | 2.1× | 2.9× |
| P/S | 0.8× | 0.5× | 0.6× | 0.7× | 1.4× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | — | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| KBI Dong Yang Steel Pipe | — | 0.9× | 0.5× | — | 0.0% |
| POSCO Holdings | 16.2× | 0.4× | 0.3× | 7.7× | 3.6% |
| Korea Zinc | 18.1× | 1.6× | 0.8× | — | 2.3% |
| Hyundai Steel | — | 0.2× | 0.2× | — | 1.9% |
| Poongsan | 8.0× | 0.7× | 0.3× | 5.9× | 2.9% |
| SeAH Besteel Holdings | 12.7× | 0.6× | 0.3× | 9.6× | 3.8% |
| Sama Aluminium | — | 4.3× | 3.1× | — | 0.0% |
| Similar companies (median) | 14.4× | 0.6× | 0.3× | 7.7× | 2.6% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: KBI Dong Yang Steel Pipe / KBI동양철관 / 008970 / KRX:008970
Source: KRX statistical information