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Sebo Manufacturing Engineering

011560 · KOSDAQ · ₩011560 · 세보엠이씨

₩21,000▲ ₩750 (3.70%)End-of-day · Oct 28, 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

₩42,791

vs the current price (₩21,000)

Enterprise value
₩326B
Equity value
₩432B
WACC
7.4%

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 104% 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 ₩21,000, the model needs an operating margin of 1.9% every year (it uses 4.2%).
  • Today's P/E is 4.7× against a typical 3.8× 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
₩21,882
+4.2%
Base
₩42,791
+103.8%
Bull
₩80,681
+284.2%

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 (4.2%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-11.5% 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 (-11.5% 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 (-11.5% 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 (-11.5% 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 (-11.5% a year, annual reports), fading to 3% by year 5.

Business

  • 4.2%

    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.

  • 3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so a typical level.

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • 12.7%

    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.

  • 4.11%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 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 0.29, 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.

  • 5.61%

    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)
₩899B
Net debt (borrowings and leases − cash and deposits)
−₩78B
+ Stakes and investments
₩27B
Associates, long-term financial assets and deposits (book value)
Shares
10,084,872
Share price
₩21,000
Market cap
₩212B

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₩872B₩789B₩716B₩809B₩755B₩728B₩727B₩749B
Growth−15.5%−9.5%−9.3%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩38B₩29B₩40B₩34B₩32B₩31B₩31B₩31B
EBIT margin4.3%3.6%5.6%4.2%4.2%4.2%4.2%4.2%
After-tax EBIT₩27B₩21B₩29B₩25B₩23B₩22B₩22B₩23B
+ Depreciation———₩24B₩23B₩22B₩22B₩22B
− Capital spending———₩32B₩30B₩29B₩29B₩30B
− Working capital−₩29B−₩24B−₩71B−₩11B−₩6.9B−₩3.4B−₩185M₩2.8B
Free cash flow———₩28B₩22B₩18B₩15B₩13B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩26B₩19B₩15B₩11B₩8.8B

Terminal value ₩352B, worth ₩246B today: 75% 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 ₩29,574 a share)Now 0.71×₩12,5000.42×₩13,6800.46×₩21,0000.71×
Price / earnings (last 12 months: ₩4,490 a share)Now 4.68×₩12,6312.81×₩16,8993.76×₩26,0685.81×
P/E on run-rate earnings (Q2 2026 × 4: ₩6,002 a share)Now 3.50×₩16,8822.81×₩22,5873.76×₩34,8415.81×

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%
6.4%₩45,186₩47,327₩49,946₩53,226₩57,459
6.9%₩42,276₩43,970₩46,004₩48,490₩51,605
7.4%₩39,821₩41,183₩42,791₩44,720₩47,079
7.9%₩37,724₩38,832₩40,123₩41,647₩43,474
8.4%₩35,910₩36,822₩37,872₩39,094₩40,536

Now (TTM)

Market cap
₩212B
Enterprise value
₩122B
P/E
4.7×
P/B
0.7×
P/S
0.2×
EV/EBITDA
—
Dividend yield
2.9%

Over time (at each year end)

20252024202320222021
Price₩13,860₩10,100₩8,740₩7,600₩7,090
Market cap₩140B₩102B₩88B₩77B₩72B
P/E3.9×3.6×2.9×3.2×6.1×
P/B0.5×0.4×0.4×0.4×0.4×
P/S0.2×0.1×0.1×0.1×0.2×
EV/EBITDA—————
Dividend yield4.3%5.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sebo Manufacturing Engineering4.7×0.7×0.2×—2.9%
Hyundai Engineering & Construction23.7×1.1×0.4×—0.8%
Daewoo Engineering & Construction—1.5×0.8×—0.0%
GS Engineering & Construction19.7×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.8×0.5×0.4×—2.9%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Sebo Manufacturing Engineering / 세보엠이씨 / 011560 / KRX:011560

Source: KRX statistical information