Oriental Precision & Engineering

014940 · KOSDAQ · ₩014940 · 오리엔탈정공

₩3,670▲ ₩75 (2.09%)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

₩8,525

vs the current price (₩3,670)

Enterprise value
₩358B
Equity value
₩389B
WACC
8.1%

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 132% 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 ₩3,670, the model needs an operating margin of 3.8% every year (it uses 9.7%).
  • Or revenue growth −20.7 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 11.5× against a typical 14.9× 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
₩5,347
+45.7%
Base
₩8,525
+132.3%
Bull
₩13,611
+270.9%

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 (9.7%).

Revenue growth

  • 16.4%

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

    Default: the last 3 years' revenue growth (16.4% a year, annual reports), fading to 3% by year 5.

  • 13%

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

    Default: the last 3 years' revenue growth (16.4% a year, annual reports), fading to 3% by year 5.

  • 9.7%

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

    Default: the last 3 years' revenue growth (16.4% a year, annual reports), fading to 3% by year 5.

  • 6.3%

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

    Default: the last 3 years' revenue growth (16.4% 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 (16.4% a year, annual reports), fading to 3% by year 5.

Business

  • 9.7%

    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.

  • 2.2%

    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).

  • 2.7%

    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).

  • -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.

  • 4.03%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 0.74

    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 0.61, 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.

  • 5.53%

    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)
₩221B
Net debt (borrowings and leases − cash and deposits)
−₩27B
+ Stakes and investments
₩2.9B
Associates, long-term financial assets and deposits (book value)
Shares
45,573,661
Share price
₩3,670
Market cap
₩167B

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₩158B₩207B₩207B₩257B₩290B₩319B₩339B₩349B
Growth19.7%31.6%−0.0%16.4%13.0%9.7%6.3%3.0%
EBIT₩13B₩25B₩24B₩25B₩28B₩31B₩33B₩34B
EBIT margin8.1%12.0%11.7%9.7%9.7%9.7%9.7%9.7%
After-tax EBIT₩9.3B₩18B₩18B₩18B₩20B₩22B₩24B₩25B
+ Depreciation———₩5.7B₩6.4B₩7B₩7.5B₩7.7B
− Capital spending₩1.9B₩5.5B₩9.1B₩6.9B₩7.8B₩8.6B₩9.1B₩9.4B
− Working capital₩11B−₩1.9B−₩6.5B−₩1.8B−₩1.7B−₩1.4B−₩1B−₩508M
Free cash flow———₩19B₩21B₩22B₩23B₩23B
Discount factor———0.9250.8560.7920.7320.677
Present value———₩17B₩18B₩18B₩17B₩16B

Terminal value ₩403B, worth ₩273B today: 76% 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 ₩3,039 a share)Now 1.21×₩4,3161.42×₩5,8091.91×₩8,8922.93×
Price / earnings (last 12 months: ₩319 a share)Now 11.5×₩3,40810.7×₩4,76114.9×₩6,47320.3×

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%
7.1%₩8,756₩9,365₩10,093₩10,979₩12,082
7.6%₩8,131₩8,640₩9,239₩9,956₩10,829
8.1%₩7,595₩8,025₩8,525₩9,116₩9,822
8.6%₩7,129₩7,496₩7,920₩8,413₩8,995
9.1%₩6,720₩7,038₩7,400₩7,818₩8,304

Now (TTM)

Market cap
₩167B
Enterprise value
₩140B
P/E
11.5×
P/B
1.2×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,710₩5,210₩2,855₩2,295₩3,675
Market cap₩351B₩237B₩130B₩105B₩167B
P/E18.4×9.1×14.6×12.5×36.7×
P/B2.8×2.2×1.5×1.2×2.2×
P/S1.7×1.1×0.8×0.8×1.4×
EV/EBITDA—————
Dividend yield0.0%1.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Oriental Precision & Engineering11.5×1.2×0.8×—0.0%
Doosan Enerbility208.4×4.6×2.1×—0.0%
Hanmi Semiconductor82.2×24.4×33.1×74.0×0.4%
Jusung Engineering1,121.0×13.7×36.0×2,158.2×0.0%
Rainbow Robotics4,006.5×51.3×151.2×—0.0%
EO Technics44.8×6.5×10.9×—0.0%
Doosan Bobcat13,664.7×914.4×736.1×—3.5%
Similar companies (median)664.7×19.1×34.5×1,116.1×0.0%

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

Also known as: Oriental Precision & Engineering / 오리엔탈정공 / 014940 / KRX:014940

Source: KRX statistical information