KOSPI · 010120 · Electrical equipment · ₩010120

LS ElectricLS ELECTRIC

010120 · KOSPI · ₩010120 · LS ELECTRIC

₩152,900▼ ₩4,000 (2.55%)End-of-day · Oct 26, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩29,048

vs the current price (₩152,900)

Enterprise value: ₩4.5T
Equity value: ₩4.4T
WACC: 9.1%

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 81% 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 ₩152,900, the model needs an operating margin of 31.4% every year (it uses 7.7%).
Or revenue growth +53.1 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩6.8T, operating profit ₩773B (11.4% margin) (2 brokers). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩9.2T, operating profit ₩1.2T (13.2% margin) (2 brokers). The model starts from the last 12 months reported.
Today's P/E is 59.0× against a typical 22.0× 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: ₩14,536; −90.5%
Base: ₩29,048; −81.0%
Bull: ₩52,376; −65.7%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (7.7%).

Revenue growth

Revenue growth, year 113.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 211%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 38.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin7.7%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1.7%
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).
Capital spending3.5%
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).
Working capital23.8%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
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.
Beta0.93
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 0.9, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩5.7T
Net debt (borrowings and leases − cash and deposits): ₩206B
+ Stakes and investments: ₩171B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩69B
Shares: 150,000,000
Share price: ₩152,900
Market cap: ₩23T

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	₩4.2T	₩4.6T	₩5T	₩6.5T	₩7.2T	₩7.8T	₩8.2T	₩8.5T
Growth	25.3%	7.6%	9.1%	13.7%	11.0%	8.4%	5.7%	3.0%
EBIT	₩325B	₩390B	₩426B	₩499B	₩553B	₩600B	₩634B	₩653B
EBIT margin	7.7%	8.6%	8.6%	7.7%	7.7%	7.7%	7.7%	7.7%
After-tax EBIT	₩236B	₩283B	₩309B	₩361B	₩401B	₩435B	₩460B	₩473B
+ Depreciation	₩67B	₩77B	₩90B	₩110B	₩122B	₩132B	₩140B	₩144B
− Capital spending	₩124B	₩152B	₩210B	₩227B	₩252B	₩273B	₩288B	₩297B
− Working capital	₩39B	₩125B	₩148B	₩186B	₩169B	₩144B	₩106B	₩59B
Free cash flow	₩139B	₩83B	₩41B	₩59B	₩102B	₩151B	₩206B	₩262B
Discount factor	—	—	—	0.917	0.840	0.770	0.706	0.647
Present value	—	—	—	₩54B	₩86B	₩116B	₩145B	₩169B

Terminal value ₩6T, worth ₩3.9T today: 87% 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 ₩14,201 a share)Now 10.8×	₩14,6461.03×	₩33,6432.37×	₩169,73212.0×
Price / earnings (last 12 months: ₩2,592 a share)Now 59.0×	₩38,70914.9×	₩57,09522.0×	₩152,90059.0×
P/E on run-rate earnings (preliminary Q3 2026 × 4: ₩3,767 a share)Now 40.6×	₩56,25514.9×	₩82,97422.0×	₩222,20659.0×

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%
8.1%	₩31,425	₩33,010	₩34,846	₩37,002	₩39,572
8.6%	₩28,907	₩30,219	₩31,722	₩33,465	₩35,511
9.1%	₩26,709	₩27,804	₩29,048	₩30,473	₩32,125
9.6%	₩24,774	₩25,696	₩26,734	₩27,911	₩29,261
10.1%	₩23,060	₩23,841	₩24,713	₩25,694	₩26,808

Now (TTM)

Market cap: ₩23T
Enterprise value: ₩23T
P/E: 59.0×
P/B: 10.8×
P/S: 4.0×
EV/EBITDA: 36.5×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩91,996	₩32,159	₩14,639	₩11,280	₩11,160
Market cap	₩14T	₩4.8T	₩2.2T	₩1.7T	₩1.7T
P/E	48.1×	20.2×	10.7×	18.7×	19.8×
P/B	6.7×	2.6×	1.3×	1.1×	1.1×
P/S	2.8×	1.1×	0.5×	0.5×	0.6×
EV/EBITDA	27.7×	11.3×	6.4×	8.0×	7.7×
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
LS Electric	59.0×	10.8×	4.0×	36.5×	0.0%
Hyosung Heavy Industries	29.5×	6.7×	2.7×	—	0.4%
HD Hyundai Electric	18.9×	7.1×	3.7×	—	0.0%
Gaon Cable	105.2×	12.7×	2.3×	54.8×	0.0%
Sanil Electric	27.1×	7.4×	8.3×	—	0.8%
Taihan Cable & Solution	—	2.1×	1.0×	—	0.0%
Iljin Electric	18.6×	4.0×	1.2×	—	0.9%
Similar companies (median)	27.1×	6.9×	2.5×	54.8×	0.2%

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

Also known as: LS Electric / LS ELECTRIC / 010120 / KRX:010120

Source: KRX statistical information