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Kye-Ryong Construction Industrial

013580 · KOSPI · ₩013580 · 계룡건설

₩22,250▼ ₩1,350 (5.72%)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

₩320,126

vs the current price (₩22,250)

Enterprise value
₩3.3T
Equity value
₩2.9T
WACC
4.7%

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 1,339% 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 ₩22,250, the model needs an operating margin of 1.7% every year (it uses 5.1%).
  • Today's P/E is 1.6× against a typical 2.3× 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
₩80,672
+262.6%
Base
₩320,126
+1,338.8%
Bull
₩933,485
+4,095.4%

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 (5.1%).

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.

  • 0.2%

    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.

  • 1.1%

    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.

  • 2.1%

    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

  • 5.1%

    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.

  • 0.2%

    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).

  • 1.2%

    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).

  • 22.4%

    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 0.19, 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)
₩3T
Net debt (borrowings and leases − cash and deposits)
₩675B
+ Stakes and investments
₩240B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩44B
Shares
8,930,907
Share price
₩22,250
Market cap
₩199B

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₩3T₩3.2T₩2.9T₩3T₩3T₩3T₩3.1T₩3.2T
Growth0.9%6.5%−8.9%−0.7%0.2%1.1%2.1%3.0%
EBIT₩101B₩98B₩167B₩152B₩152B₩154B₩157B₩162B
EBIT margin3.4%3.1%5.8%5.1%5.1%5.1%5.1%5.1%
After-tax EBIT₩73B₩71B₩121B₩110B₩110B₩111B₩114B₩117B
+ Depreciation₩6.7B₩7.1B₩8.4B₩5.9B₩6B₩6B₩6.2B₩6.3B
− Capital spending₩26B₩30B₩55B₩36B₩36B₩36B₩37B₩38B
− Working capital₩79B₩166B−₩80B−₩4.7B₩1.3B₩7.3B₩14B₩21B
Free cash flow−₩25B−₩118B₩154B₩85B₩79B₩74B₩69B₩65B
Discount factor———0.9550.9110.8700.8310.793
Present value———₩81B₩72B₩64B₩57B₩51B

Terminal value ₩3.8T, worth ₩3T today: 90% 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 ₩111,917 a share)Now 0.20×₩16,4290.15×₩22,2500.20×₩48,5970.43×
Price / earnings (last 12 months: ₩13,991 a share)Now 1.59×₩21,0741.51×₩32,4592.32×₩42,5493.04×
P/E on run-rate earnings (Q2 2026 × 4: ₩17,355 a share)Now 1.28×₩26,1401.51×₩40,2632.32×₩52,7793.04×

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%
3.7%₩358,517₩429,189₩540,097₩739,601₩1,205,330
4.2%₩292,813₩339,009₩405,609₩510,123₩698,114
4.7%₩244,701₩276,657₩320,126₩382,791₩481,122
5.2%₩207,968₩230,995₩261,016₩301,849₩360,709
5.7%₩179,017₩196,127₩217,722₩245,873₩284,158

Now (TTM)

Market cap
₩199B
Enterprise value
₩823B
P/E
1.6×
P/B
0.2×
P/S
0.1×
EV/EBITDA
4.0×
Dividend yield
3.1%

Over time (at each year end)

20252024202320222021
Price₩20,350₩12,890₩14,450₩18,200₩32,600
Market cap₩182B₩115B₩129B₩163B₩291B
P/E1.8×2.4×2.7×2.7×1.9×
P/B0.2×0.1×0.2×0.2×0.4×
P/S0.1×0.0×0.0×0.1×0.1×
EV/EBITDA2.3×3.2×4.4×3.5×2.1×
Dividend yield3.4%3.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Kye-Ryong Construction Industrial1.6×0.2×0.1×4.0×3.1%
Hyundai Engineering & Construction20.8×1.0×0.3×—1.0%
Daewoo Engineering & Construction—1.2×0.6×—0.0%
GS Engineering & Construction17.1×0.5×0.2×—1.9%
DL E&C3.4×0.4×0.3×—1.6%
KEPCO Plant Service & Engineering14.3×1.4×1.1×8.0×0.0%
Ipark Hyundai Development8.6×0.5×0.4×—2.9%
Similar companies (median)14.3×0.7×0.4×8.0×1.3%

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

Also known as: Kye-Ryong Construction Industrial / 계룡건설 / 013580 / KRX:013580

Source: KRX statistical information