KOSPI · 011420 · Hotels & Leisure · ₩011420

Galaxia SM갤럭시아에스엠

011420 · KOSPI · ₩011420 · 갤럭시아에스엠

₩1,162▼ ₩14 (1.19%)End-of-day · Oct 30, 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

₩2,612

vs the current price (₩1,162)

Enterprise value: ₩70B
Equity value: ₩72B
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 125% 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 ₩1,162, the model needs an operating margin of 6.0% every year (it uses 11.5%).
Or revenue growth −28.2 points a year higher than assumed in each of the 5 years.
Today's P/E is 8.6× against a typical 17.3× 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: ₩1,611; +38.6%
Base: ₩2,612; +124.8%
Bull: ₩4,336; +273.1%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (11.5%).

Revenue growth

Revenue growth, year 110.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.3% 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 (10.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin11.5%
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 & amortisation1.4%
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).
Capital spending1.7%
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).
Working capital40%
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 rate4.01%
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.
Beta0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.27, 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)5.51%
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): ₩42B
Net debt (borrowings and leases − cash and deposits): −₩4.1B
− Minority interests: ₩2.1B
Shares: 27,549,644
Share price: ₩1,162
Market cap: ₩32B

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	₩33B	₩32B	₩40B	₩47B	₩51B	₩54B	₩56B	₩58B
Growth	9.5%	−1.4%	24.2%	10.3%	8.4%	6.6%	4.8%	3.0%
EBIT	₩4.6B	₩3.2B	₩4B	₩5.4B	₩5.8B	₩6.2B	₩6.5B	₩6.7B
EBIT margin	13.9%	9.9%	9.9%	11.5%	11.5%	11.5%	11.5%	11.5%
After-tax EBIT	₩3.3B	₩2.3B	₩2.9B	₩3.9B	₩4.2B	₩4.5B	₩4.7B	₩4.8B
+ Depreciation	—	—	—	₩653M	₩707M	₩754M	₩790M	₩814M
− Capital spending	₩857M	₩820M	₩31M	₩792M	₩859M	₩916M	₩960M	₩988M
− Working capital	₩5.3B	₩4.4B	₩249M	₩1.7B	₩1.6B	₩1.3B	₩1B	₩677M
Free cash flow	—	—	—	₩2B	₩2.5B	₩3B	₩3.5B	₩4B
Discount factor	—	—	—	0.932	0.868	0.809	0.754	0.703
Present value	—	—	—	₩1.9B	₩2.2B	₩2.4B	₩2.6B	₩2.8B

Terminal value ₩83B, worth ₩58B today: 83% 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 ₩2,115 a share)Now 0.55×	₩1,4260.67×	₩2,2821.08×	₩4,4492.10×
Price / earnings (last 12 months: ₩136 a share)Now 8.57×	₩1,43910.6×	₩2,34817.3×	₩3,10122.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩199 a share)Now 5.85×	₩2,10810.6×	₩3,43917.3×	₩4,54222.9×

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%
6.3%	₩2,823	₩3,010	₩3,239	₩3,528	₩3,904
6.8%	₩2,569	₩2,716	₩2,893	₩3,110	₩3,384
7.3%	₩2,356	₩2,473	₩2,612	₩2,780	₩2,985
7.8%	₩2,174	₩2,269	₩2,380	₩2,512	₩2,670
8.3%	₩2,017	₩2,095	₩2,185	₩2,290	₩2,414

Now (TTM)

Market cap: ₩32B
Enterprise value: ₩26B
P/E: 8.6×
P/B: 0.5×
P/S: 0.8×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩1,912	₩1,930	₩2,635	₩1,700	₩3,055
Market cap	₩53B	₩53B	₩73B	₩47B	₩84B
P/E	14.2×	18.4×	27.1×	10.2×	22.9×
P/B	0.7×	0.8×	1.0×	1.4×	2.5×
P/S	1.3×	1.6×	2.2×	1.6×	2.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Galaxia SM	8.6×	0.5×	0.8×	—	0.0%
Kangwon Land	9.0×	0.8×	2.0×	9.0×	0.0%
Paradise	11.7×	0.5×	0.7×	—	1.6%
Seobu T&D	7.3×	0.7×	2.4×	10.8×	0.9%
Grand Korea Leisure	10.5×	1.1×	1.1×	4.6×	5.2%
Ananti	—	0.6×	1.6×	—	0.0%
Mona Yongpyong	—	0.3×	0.5×	—	0.0%
Similar companies (median)	9.7×	0.6×	1.4×	9.0×	0.4%

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

Also known as: Galaxia SM / 갤럭시아에스엠 / 011420 / KRX:011420

Source: KRX statistical information