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Bubang

014470 · KOSDAQ · ₩014470 · 부방

₩990▲ ₩5 (0.51%)End-of-day · Oct 27, 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

₩547

vs the current price (₩990)

Enterprise value
₩2.4B
Equity value
₩29B
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 45% 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 ₩990, the model needs an operating margin of 0.9% every year (it uses 0.3%).
  • Or revenue growth +19.7 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 1858.5× 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
₩547
−44.7%
Bull
₩2,721
+174.9%

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 (0.3%).

Revenue growth

  • -1.9%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • -0.7%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 0.5%

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

    Default: the last 3 years' revenue growth (-1.9% 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 (-1.9% 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 (-1.9% a year, annual reports), fading to 3% by year 5.

Business

  • 0.3%

    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.

  • 1.8%

    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).

  • 2.3%

    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).

  • -4.9%

    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.

  • 4.11%

    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 0.03, 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)
₩314B
Net debt (borrowings and leases − cash and deposits)
−₩9.1B
+ Stakes and investments
₩18B
Associates, long-term financial assets and deposits (book value)
Shares
53,666,481
Share price
₩990
Market cap
₩53B

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₩331B₩336B₩319B₩308B₩306B₩307B₩313B₩322B
Growth−2.2%1.6%−5.0%−1.9%−0.7%0.5%1.8%3.0%
EBIT−₩342M₩4.9B₩1.8B₩923M₩917M₩921M₩938M₩966M
EBIT margin−0.1%1.4%0.5%0.3%0.3%0.3%0.3%0.3%
After-tax EBIT−₩248M₩3.5B₩1.3B₩669M₩665M₩668M₩680M₩700M
+ Depreciation———₩5.5B₩5.5B₩5.5B₩5.6B₩5.8B
− Capital spending₩13B₩5.1B₩4.1B₩7.1B₩7B₩7.1B₩7.2B₩7.4B
− Working capital−₩56B₩43B₩12B₩292M₩106M−₩75M−₩271M−₩460M
Free cash flow———−₩1.2B−₩969M−₩793M−₩612M−₩450M
Discount factor———0.9310.8670.8070.7510.700
Present value———−₩1.1B−₩840M−₩640M−₩460M−₩315M

Terminal value ₩8.2B, worth ₩5.8B today: 238% 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 ₩3,202 a share)Now 0.31×₩1,3130.41×₩2,0720.65×₩2,6670.83×
Price / earnings (last 12 months: ₩1 a share)Now 1858.5×₩24.15×₩36.31×₩1018.6×

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%₩509₩539₩576₩623₩684
6.9%₩503₩529₩560₩599₩648
7.4%₩497₩520₩547₩580₩621
7.9%₩492₩513₩536₩565₩599
8.4%₩488₩507₩528₩552₩582

Now (TTM)

Market cap
₩53B
Enterprise value
₩43B
P/E
1,858.5×
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩1,416₩1,615₩3,115₩2,150₩2,490
Market cap₩76B₩87B₩167B₩115B₩134B
P/E32.6×7.5×—3.7×—
P/B0.4×0.5×1.1×0.6×0.9×
P/S0.2×0.3×0.5×0.3×0.4×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Bubang1,858.5×0.3×0.2×—0.0%
SK Reit49.6×0.8×22.8×—1.3%
Lotte Reit59.2×1.1×16.3×—2.8%
Hanwha Reit68.1×1.4×16.7×45.4×2.5%
ESR Kendall Square Reit1,184.3×0.7×11.7×73.5×4.5%
Shinhan Alpha REIT97.6×1.2×8.0×34.3×3.0%
SamsungFN Reit153.7×1.2×38.5×—1.4%
Similar companies (median)82.9×1.1×16.5×45.4×2.7%

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

Also known as: Bubang / 부방 / 014470 / KRX:014470

Source: KRX statistical information