KOSPI · 011690 · Semiconductors · ₩011690

Y2 Solution와이투솔루션

011690 · KOSPI · ₩011690 · 와이투솔루션

₩3,960▲ ₩20 (0.51%)End-of-day · Oct 27, 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

With these assumptions the model gives no positive value.

Enterprise value: −₩57B
Equity value: −₩80B
WACC: 7.5%

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:

To match today's price of ₩3,960, the model needs an operating margin of 5.7% every year (it uses 0.7%).
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: ₩485; −87.7%

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 (0.7%).

Revenue growth

Revenue growth, year 111.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 29.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 37.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.2% 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 (11.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin0.7%
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 & amortisation1.5%
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 spending2.2%
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 capital38%
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.
Beta0.78
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 0.67, 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): ₩269B
Net debt (borrowings and leases − cash and deposits): ₩32B
+ Stakes and investments: ₩9B; Associates, long-term financial assets and deposits (book value)
Shares: 36,698,762
Share price: ₩3,960
Market cap: ₩145B

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	₩137B	₩155B	₩165B	₩299B	₩327B	₩350B	₩368B	₩379B
Growth	13.8%	13.1%	6.8%	11.2%	9.2%	7.1%	5.1%	3.0%
EBIT	₩3.5B	₩2.9B	−₩2.6B	₩2.1B	₩2.3B	₩2.4B	₩2.6B	₩2.7B
EBIT margin	2.6%	1.9%	−1.6%	0.7%	0.7%	0.7%	0.7%	0.7%
After-tax EBIT	₩2.6B	₩2.1B	−₩1.9B	₩1.5B	₩1.7B	₩1.8B	₩1.9B	₩1.9B
+ Depreciation	₩1.6B	₩3.2B	₩2.3B	₩4.5B	₩4.9B	₩5.2B	₩5.5B	₩5.7B
− Capital spending	₩3.1B	₩3.7B	₩3.2B	₩6.6B	₩7.2B	₩7.7B	₩8.1B	₩8.3B
− Working capital	₩27B	−₩2.2B	−₩8.4B	₩11B	₩10B	₩8.8B	₩6.8B	₩4.2B
Free cash flow	−₩26B	₩3.8B	₩5.6B	−₩12B	−₩11B	−₩9.5B	−₩7.5B	−₩4.9B
Discount factor	—	—	—	0.930	0.865	0.804	0.748	0.695
Present value	—	—	—	−₩11B	−₩9.6B	−₩7.6B	−₩5.6B	−₩3.4B

Terminal value −₩28B, worth −₩19B today: 34% 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 ₩2,717 a share)Now 1.46×	₩2,5000.92×	₩3,4771.28×	₩6,8342.51×

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%
6.5%	—	—	—	—	—
7.0%	—	—	—	—	—
7.5%	—	—	—	—	—
8.0%	—	—	—	—	—
8.5%	—	—	—	—	—

Now (TTM)

Market cap: ₩145B
Enterprise value: ₩176B
P/E: —
P/B: 1.5×
P/S: 0.5×
EV/EBITDA: 76.4×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩4,145	₩2,025	₩2,790	₩2,970	₩6,000
Market cap	₩152B	₩74B	₩102B	₩109B	₩220B
P/E	—	11.3×	—	—	—
P/B	1.5×	0.7×	1.0×	1.3×	2.5×
P/S	0.9×	0.5×	0.7×	0.9×	2.2×
EV/EBITDA	—	8.2×	18.8×	18.3×	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Y2 Solution	—	1.5×	0.5×	76.4×	0.0%
SK hynix	6.0×	3.7×	5.2×	—	0.2%
DB HiTek	11.9×	1.7×	2.7×	—	0.9%
Fadu	—	37.7×	13.2×	—	0.0%
Hana Micron	13.8×	4.3×	1.1×	—	0.2%
Jeju Semiconductor	9.5×	4.9×	3.3×	—	0.0%
SFA Semicon	—	3.0×	3.2×	—	0.0%
Similar companies (median)	10.7×	4.0×	3.2×	—	0.1%

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

Also known as: Y2 Solution / 와이투솔루션 / 011690 / KRX:011690

Source: KRX statistical information