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IS Dongseo

010780 · KOSPI · ₩010780 · 아이에스동서

₩13,670▼ ₩250 (1.80%)End-of-day · Oct 30, 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

₩58,198

vs the current price (₩13,670)

Enterprise value
₩1.5T
Equity value
₩1.7T
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 is 326% 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 ₩13,670, the model needs an operating margin of 2.3% every year (it uses 13.1%).
  • Margins ranged from 5.5% to 19.3% 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 5.0× against a typical 5.3× 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
₩40,818
+198.6%
Base
₩58,198
+325.7%
Bull
₩88,107
+544.5%

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 (13.1%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-18.5% 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 (-18.5% 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 (-18.5% 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 (-18.5% 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 (-18.5% a year, annual reports), fading to 3% by year 5.

Business

  • 13.1%

    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.

  • 2.6%

    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).

  • 3.3%

    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).

  • 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.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 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 0.17, 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.

  • 5.51%

    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)
₩1.2T
Net debt (borrowings and leases − cash and deposits)
−₩300B
+ Stakes and investments
₩100B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩180B
Shares
29,724,668
Share price
₩13,670
Market cap
₩406B

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₩2T₩1.5T₩1.2T₩1T₩966B₩933B₩931B₩959B
Growth−10.9%−25.4%−18.5%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩341B₩170B₩68B₩136B₩127B₩122B₩122B₩126B
EBIT margin16.8%11.2%5.5%13.1%13.1%13.1%13.1%13.1%
After-tax EBIT₩247B₩123B₩49B₩98B₩92B₩89B₩88B₩91B
+ Depreciation———₩27B₩25B₩24B₩24B₩25B
− Capital spending₩69B₩52B₩36B₩34B₩32B₩31B₩31B₩32B
− Working capital−₩139B₩214B−₩145B−₩46B−₩28B−₩14B−₩746M₩11B
Free cash flow———₩137B₩113B₩96B₩83B₩73B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩128B₩98B₩77B₩62B₩51B

Terminal value ₩1.6T, worth ₩1.1T today: 72% 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 ₩46,893 a share)Now 0.29×₩17,9040.38×₩24,4310.52×₩51,9331.11×
Price / earnings (last 12 months: ₩2,757 a share)Now 4.96×₩10,5123.81×₩14,6105.30×₩44,50316.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩722 a share)Now 18.9×₩2,7543.81×₩3,8275.30×₩11,65916.1×

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%₩61,729₩65,098₩69,238₩74,453₩81,229
6.8%₩57,272₩59,937₩63,146₩67,089₩72,056
7.3%₩53,520₩55,661₩58,198₩61,252₩65,004
7.8%₩50,317₩52,061₩54,097₩56,509₩59,413
8.3%₩47,551₩48,987₩50,644₩52,579₩54,870

Now (TTM)

Market cap
₩406B
Enterprise value
₩106B
P/E
5.0×
P/B
0.3×
P/S
0.4×
EV/EBITDA
—
Dividend yield
3.7%

Over time (at each year end)

20252024202320222021
Price₩23,350₩20,900₩28,950₩28,200₩44,250
Market cap₩694B₩621B₩861B₩838B₩1.3T
P/E——5.3×4.3×12.5×
P/B0.6×0.5×0.6×0.6×1.1×
P/S0.6×0.4×0.4×0.4×0.8×
EV/EBITDA—————
Dividend yield2.1%4.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
IS Dongseo5.0×0.3×0.4×—3.7%
Tokai Carbon Korea27.9×3.9×6.4×—0.7%
Hanilcementco11.6×0.6×0.9×—6.3%
Wonik QnC14.0×1.3×0.7×—0.5%
Sampyo Cement16.4×0.7×0.8×5.9×2.2%
Hanil Holdings9.6×0.3×0.3×—5.9%
KCC Glass—0.3×0.2×—0.0%
Similar companies (median)14.0×0.7×0.8×5.9×1.5%

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

Also known as: IS Dongseo / 아이에스동서 / 010780 / KRX:010780

Source: KRX statistical information