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Taihan Fiberoptics

010170 · KOSDAQ · ₩010170 · 대한광통신

₩13,700▲ ₩320 (2.39%)End-of-day · Oct 27, 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
−₩172B
Equity value
−₩258B
WACC
9.0%

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:

  • No operating margin up to 90% gets the model to today's price at these growth assumptions.
  • Margins ranged from −19.5% to 1.8% 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 (−13.8%).

Revenue growth

  • -9.8%

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

    Default: the last 3 years' revenue growth (-9.8% a year, annual reports), fading to 3% by year 5.

  • -6.6%

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

    Default: the last 3 years' revenue growth (-9.8% a year, annual reports), fading to 3% by year 5.

  • -3.4%

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

    Default: the last 3 years' revenue growth (-9.8% 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 (-9.8% 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 (-9.8% a year, annual reports), fading to 3% by year 5.

Business

  • -13.8%

    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.

  • 4.4%

    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).

  • 2.7%

    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).

  • 31.9%

    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.

  • 0.94

    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 0.91, 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)
₩156B
Net debt (borrowings and leases − cash and deposits)
₩86B
+ Stakes and investments
₩1.3B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩640M
Shares
155,485,660
Share price
₩13,700
Market cap
₩2.1T

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₩180B₩153B₩139B₩140B₩131B₩127B₩126B₩130B
Growth−5.2%−15.3%−8.7%−9.8%−6.6%−3.4%−0.2%3.0%
EBIT−₩23B−₩30B−₩21B−₩19B−₩18B−₩17B−₩17B−₩18B
EBIT margin−12.9%−19.5%−15.4%−13.8%−13.8%−13.8%−13.8%−13.8%
After-tax EBIT−₩17B−₩22B−₩16B−₩14B−₩13B−₩13B−₩13B−₩13B
+ Depreciation₩7.4B₩7.5B₩5.8B₩6.2B₩5.8B₩5.6B₩5.6B₩5.7B
− Capital spending₩8.1B₩4.5B₩869M₩3.8B₩3.5B₩3.4B₩3.4B₩3.5B
− Working capital−₩10B−₩6.9B−₩6.4B−₩4.9B−₩3B−₩1.4B−₩81M₩1.2B
Free cash flow−₩7.2B−₩12B−₩4.2B−₩6.8B−₩7.9B−₩9.1B−₩10B−₩12B
Discount factor———0.9170.8420.7720.7080.650
Present value———−₩6.2B−₩6.7B−₩7B−₩7.4B−₩7.8B

Terminal value −₩210B, worth −₩137B today: 80% 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 ₩715 a share)Now 19.2×₩1,3471.89×₩1,9282.70×₩12,07216.9×

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%
8.0%—————
8.5%—————
9.0%—————
9.5%—————
10.0%—————

Now (TTM)

Market cap
₩2.1T
Enterprise value
₩2.2T
P/E
—
P/B
19.2×
P/S
13.7×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,132₩818₩1,145₩2,827₩2,226
Market cap₩332B₩127B₩178B₩440B₩346B
P/E—————
P/B5.0×3.1×2.3×4.2×3.3×
P/S2.4×0.8×1.0×2.3×2.2×
EV/EBITDA———49.5×—
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Taihan Fiberoptics—19.2×13.7×—0.0%
LS Electric61.0×11.1×4.2×37.7×0.0%
Hyosung Heavy Industries30.5×6.9×2.8×—0.4%
HD Hyundai Electric19.1×7.2×3.7×—0.0%
Gaon Cable106.8×12.9×2.4×55.6×0.0%
Sanil Electric27.2×7.4×8.3×—0.8%
Taihan Cable & Solution—2.2×1.0×—0.0%
Similar companies (median)30.5×7.3×3.3×46.7×0.0%

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

Also known as: Taihan Fiberoptics / 대한광통신 / 010170 / KRX:010170

Source: KRX statistical information