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Sungmoon Electronics

014910 · KOSPI · ₩014910 · 성문전자

₩1,522▼ ₩57 (3.61%)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

₩168

vs the current price (₩1,522)

Enterprise value
₩17B
Equity value
₩3.8B
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 89% 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 ₩1,522, the model needs an operating margin of 7.3% every year (it uses 3.5%).
  • 55% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
  • Today's P/E is 10.6× against a typical 13.5× 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
₩168
−88.9%
Bull
₩1,382
−9.2%

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 (3.5%).

Revenue growth

  • 2.4%

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

    Default: the last 3 years' revenue growth (2.4% a year, annual reports), fading to 3% by year 5.

  • 2.6%

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

    Default: the last 3 years' revenue growth (2.4% a year, annual reports), fading to 3% by year 5.

  • 2.7%

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

    Default: the last 3 years' revenue growth (2.4% a year, annual reports), fading to 3% by year 5.

  • 2.9%

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

    Default: the last 3 years' revenue growth (2.4% 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 (2.4% a year, annual reports), fading to 3% by year 5.

Business

  • 3.5%

    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.

  • 2.5%

    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).

  • 3.1%

    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).

  • 34.1%

    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.

  • 0.97

    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 0.96, 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)
₩57B
Net debt (borrowings and leases − cash and deposits)
₩21B
+ Stakes and investments
₩8.8B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩465M
Shares
22,457,257
incl. 600,000 preferred
Share price
₩1,522
Market cap
₩36B

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₩45B₩48B₩54B₩58B₩60B₩61B₩63B₩65B
Growth−9.8%6.7%11.7%2.4%2.6%2.7%2.9%3.0%
EBIT₩514M₩1.1B₩1.7B₩2B₩2.1B₩2.1B₩2.2B₩2.3B
EBIT margin1.1%2.3%3.1%3.5%3.5%3.5%3.5%3.5%
After-tax EBIT₩372M₩800M₩1.2B₩1.5B₩1.5B₩1.6B₩1.6B₩1.7B
+ Depreciation———₩1.5B₩1.5B₩1.5B₩1.6B₩1.6B
− Capital spending₩428M₩1.3B₩3.1B₩1.8B₩1.9B₩1.9B₩2B₩2B
− Working capital−₩6.5B₩3.5B−₩4.5B₩466M₩517M₩551M₩607M₩647M
Free cash flow———₩664M₩642M₩639M₩617M₩615M
Discount factor———0.9310.8680.8080.7530.701
Present value———₩618M₩557M₩517M₩465M₩431M

Terminal value ₩20B, worth ₩14B today: 84% 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 ₩2,275 a share)Now 0.67×₩1,4660.64×₩2,0930.92×₩3,8541.69×
Price / earnings (last 12 months: ₩144 a share)Now 10.6×₩1,3079.08×₩1,94713.5×₩2,74519.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩259 a share)Now 5.87×₩2,3549.08×₩3,50613.5×₩4,94419.1×

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%₩332₩341₩351₩362₩376
6.9%₩247₩249₩250₩251₩251
7.4%₩176₩173₩168₩163₩155
7.9%₩115₩109₩101₩91₩78
8.4%₩63₩54₩44₩32₩16

Now (TTM)

Market cap
₩33B
Enterprise value
₩54B
P/E
10.3×
P/B
0.7×
P/S
0.6×
EV/EBITDA
—
Dividend yield
0.3%

Over time (at each year end)

20252024202320222021
Price₩1,518₩1,059₩1,505₩1,550₩2,415
Market cap₩33B₩23B₩33B₩34B₩53B
P/E16.6×8.5×—16.6×18.1×
P/B0.8×0.6×0.9×1.1×1.7×
P/S0.6×0.5×0.7×0.7×1.1×
EV/EBITDA—————
Dividend yield0.3%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sungmoon Electronics10.3×0.7×0.6×—0.3%
Samsung Electro-Mechanics88.7×8.7×7.2×—0.2%
Doosan34.5×4.9×0.6×—0.4%
Hanwha Systems65.1×2.5×2.8×—0.8%
LG Innotek11.6×1.2×0.3×—0.6%
Isupetasys30.8×7.2×4.7×—0.0%
Daeduck Electronics38.8×6.0×4.4×—0.4%
Similar companies (median)36.6×5.5×3.6×—0.4%

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

Also known as: Sungmoon Electronics / 성문전자 / 014910 / KRX:014910

Source: KRX statistical information