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GMB Korea

013870 · KOSPI · ₩013870 · 지엠비코리아

₩3,560▲ ₩60 (1.71%)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

₩5,766

vs the current price (₩3,560)

Enterprise value
₩283B
Equity value
₩110B
WACC
4.9%

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 62% 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 ₩3,560, the model needs an operating margin of 2.5% every year (it uses 2.7%).
  • Or revenue growth −14.0 points a year higher than assumed in each of the 5 years.
  • 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.
  • Today's P/E is 3.2× against a typical 6.3× 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
—
Base
₩5,766
+62.0%
Bull
₩65,548
+1,741.2%

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 (2.7%).

Revenue growth

  • 8.8%

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

    Default: the last 3 years' revenue growth (8.8% a year, annual reports), fading to 3% by year 5.

  • 7.4%

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

    Default: the last 3 years' revenue growth (8.8% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (8.8% a year, annual reports), fading to 3% by year 5.

  • 4.5%

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

    Default: the last 3 years' revenue growth (8.8% 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 (8.8% a year, annual reports), fading to 3% by year 5.

Business

  • 2.7%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 4%

    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).

  • 5.3%

    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).

  • 26.5%

    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 0.18, 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)
₩824B
Net debt (borrowings and leases − cash and deposits)
₩194B
+ Stakes and investments
₩33B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩12B
Shares
19,072,280
Share price
₩3,560
Market cap
₩68B

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₩691B₩727B₩787B₩896B₩962B₩1T₩1.1T₩1.1T
Growth13.2%5.2%8.3%8.8%7.4%5.9%4.5%3.0%
EBIT₩21B₩23B₩24B₩24B₩26B₩28B₩29B₩30B
EBIT margin3.0%3.1%3.1%2.7%2.7%2.7%2.7%2.7%
After-tax EBIT₩15B₩16B₩18B₩18B₩19B₩20B₩21B₩21B
+ Depreciation₩29B₩29B₩31B₩36B₩38B₩41B₩43B₩44B
− Capital spending₩33B₩51B₩32B₩47B₩51B₩54B₩56B₩58B
− Working capital₩17B−₩1.3B₩41B₩19B₩18B₩15B₩12B₩8.5B
Free cash flow−₩7B−₩4.2B−₩24B−₩13B−₩11B−₩8.3B−₩5.2B−₩1.3B
Discount factor———0.9540.9100.8670.8270.789
Present value———−₩13B−₩10B−₩7.2B−₩4.3B−₩990M

Terminal value ₩403B, worth ₩318B today: 113% 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 ₩15,971 a share)Now 0.22×₩4,0720.25×₩5,1070.32×₩7,1240.45×
Price / earnings (last 12 months: ₩1,120 a share)Now 3.18×₩5,0064.47×₩7,0266.27×₩13,30611.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,747 a share)Now 2.04×₩7,8064.47×₩10,9566.27×₩20,74911.9×

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%
3.9%₩10,841₩12,879₩15,984₩21,337₩32,891
4.4%₩7,172₩8,257₩9,778₩12,087₩16,056
4.9%₩4,471₩5,031₩5,766₩6,788₩8,330
5.4%₩2,404₩2,656₩2,965₩3,363₩3,905
5.9%₩774₩838₩904₩973₩1,046

Now (TTM)

Market cap
₩68B
Enterprise value
₩244B
P/E
3.2×
P/B
0.2×
P/S
0.1×
EV/EBITDA
4.2×
Dividend yield
7.0%

Over time (at each year end)

20252024202320222021
Price₩4,000₩3,670₩4,760₩4,450₩5,930
Market cap₩76B₩70B₩91B₩85B₩113B
P/E5.2×4.6×7.9×7.2×11.6×
P/B0.3×0.3×0.3×0.3×0.5×
P/S0.1×0.1×0.1×0.1×0.2×
EV/EBITDA4.9×4.6×5.1×5.9×7.4×
Dividend yield6.3%6.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
GMB Korea3.2×0.2×0.1×4.2×7.0%
Hyundai Mobis8.3×0.6×0.5×—1.9%
SL5.9×0.8×0.4×3.6×0.0%
HL Mando10.3×0.6×0.2×—2.0%
Hyundai WIA18.9×0.4×0.2×—2.4%
Samhyun—11.2×15.8×—0.0%
SNT Dynamics12.5×0.7×0.8×—7.3%
Similar companies (median)10.3×0.6×0.4×3.6×2.0%

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

Also known as: GMB Korea / 지엠비코리아 / 013870 / KRX:013870

Source: KRX statistical information