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Daechang

012800 · KOSPI · ₩012800 · 대창

₩1,009▼ ₩6 (0.59%)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

₩5,312

vs the current price (₩1,009)

Enterprise value
₩541B
Equity value
₩484B
WACC
6.6%

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 426% 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 ₩1,009, the model needs an operating margin of 1.3% every year (it uses 2.8%).
  • Today's P/E is 4.1× against a typical 10.5× 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
—
Base
₩5,312
+426.4%
Bull
₩16,083
+1,493.9%

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 (2.8%).

Revenue growth

  • 0.7%

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

    Default: the last 3 years' revenue growth (0.7% a year, annual reports), fading to 3% by year 5.

  • 1.2%

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

    Default: the last 3 years' revenue growth (0.7% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (0.7% a year, annual reports), fading to 3% by year 5.

  • 2.4%

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

    Default: the last 3 years' revenue growth (0.7% 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 (0.7% a year, annual reports), fading to 3% by year 5.

Business

  • 2.8%

    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.

  • 0.4%

    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).

  • 0.5%

    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).

  • 26.9%

    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.

  • 4.01%

    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.

  • 0.67

    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 0.5, 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)
₩1.7T
Net debt (borrowings and leases − cash and deposits)
₩40B
+ Stakes and investments
₩3B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩20B
Shares
91,140,499
Share price
₩1,009
Market cap
₩92B

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₩1.3T₩1.3T₩1.5T₩1.7T₩1.7T₩1.7T₩1.8T₩1.8T
Growth−8.2%1.0%10.0%0.7%1.2%1.8%2.4%3.0%
EBIT−₩9.3B₩31B₩52B₩48B₩48B₩49B₩50B₩52B
EBIT margin−0.7%2.3%3.5%2.8%2.8%2.8%2.8%2.8%
After-tax EBIT−₩6.7B₩23B₩37B₩34B₩35B₩35B₩36B₩37B
+ Depreciation———₩6.8B₩6.9B₩7B₩7.2B₩7.4B
− Capital spending₩5.8B₩7B₩7.2B₩8.5B₩8.6B₩8.7B₩9B₩9.2B
− Working capital−₩6.9B−₩28B₩53B₩3.2B₩5.5B₩8.3B₩11B₩14B
Free cash flow———₩30B₩28B₩25B₩23B₩21B
Discount factor———0.9380.8800.8260.7750.727
Present value———₩28B₩24B₩21B₩18B₩15B

Terminal value ₩598B, worth ₩435B 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 ₩3,452 a share)Now 0.29×₩1,4170.41×₩1,7650.51×₩2,4090.70×
Price / earnings (last 12 months: ₩248 a share)Now 4.07×₩1,1914.81×₩2,59510.5×₩14,73859.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩364 a share)Now 2.77×₩1,7494.81×₩3,81010.5×₩21,63859.5×

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%
5.6%₩6,440₩6,676₩6,972₩7,358₩7,885
6.1%₩5,723₩5,866₩6,040₩6,256₩6,537
6.6%₩5,135₩5,217₩5,312₩5,425₩5,565
7.1%₩4,645₩4,684₩4,727₩4,776₩4,832
7.6%₩4,230₩4,240₩4,248₩4,254₩4,258

Now (TTM)

Market cap
₩92B
Enterprise value
₩130B
P/E
4.1×
P/B
0.3×
P/S
0.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩1,278₩1,240₩1,266₩1,205₩1,820
Market cap₩116B₩113B₩115B₩110B₩166B
P/E54.7×25.7×—29.7×6.4×
P/B0.4×0.4×0.5×0.4×0.7×
P/S0.1×0.1×0.1×0.1×0.1×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Daechang4.1×0.3×0.1×—0.0%
POSCO Holdings16.1×0.4×0.3×7.7×3.7%
Korea Zinc18.6×1.6×0.9×—2.3%
Hyundai Steel—0.2×0.1×—1.9%
Poongsan8.0×0.7×0.3×5.9×3.0%
SeAH Besteel Holdings11.5×0.5×0.3×9.2×4.2%
Sama Aluminium—4.0×2.9×—0.0%
Similar companies (median)13.8×0.6×0.3×7.7×2.6%

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

Also known as: Daechang / 대창 / 012800 / KRX:012800

Source: KRX statistical information