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SGC E&C

016250 · KOSDAQ · ₩016250 · SGC E&C

₩10,670▼ ₩130 (1.20%)End-of-day · Oct 29, 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

₩94,476

vs the current price (₩10,670)

Enterprise value
₩988B
Equity value
₩476B
WACC
4.3%

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 785% 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 ₩10,670, the model needs an operating margin of 1.7% every year (it uses 2.9%).
  • Or revenue growth −12.5 points a year higher than assumed in each of the 5 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
₩94,476
+785.4%
Bull
₩587,708
+5,408.0%

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

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (2.9%).

Revenue growth

  • -4.1%

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

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • -2.4%

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

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • 1.2%

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

    Default: the last 3 years' revenue growth (-4.1% 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 (-4.1% a year, annual reports), fading to 3% by year 5.

Business

  • 2.9%

    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.

  • 0.7%

    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).

  • 0.2%

    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).

  • 6.9%

    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.

  • 4.01%

    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 0.25, 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)
₩1.3T
Net debt (borrowings and leases − cash and deposits)
₩564B
+ Stakes and investments
₩51B
Associates, long-term financial assets and deposits (book value)
Shares
5,036,986
Share price
₩10,670
Market cap
₩54B

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₩1.9T₩1.2T₩1.3T₩1.2T₩1.2T₩1.2T₩1.2T₩1.2T
Growth22.3%−35.3%11.3%−4.1%−2.4%−0.6%1.2%3.0%
EBIT−₩22B₩11B₩53B₩35B₩35B₩34B₩35B₩36B
EBIT margin−1.2%0.9%3.9%2.9%2.9%2.9%2.9%2.9%
After-tax EBIT−₩16B₩7.7B₩38B₩26B₩25B₩25B₩25B₩26B
+ Depreciation₩7B₩11B₩11B₩8.5B₩8.3B₩8.3B₩8.4B₩8.6B
− Capital spending₩1,000M₩2.3B₩3.6B₩2.4B₩2.4B₩2.4B₩2.4B₩2.5B
− Working capital₩160B₩220B₩40B−₩3.6B−₩2B−₩493M₩980M₩2.5B
Free cash flow−₩170B−₩204B₩6.3B₩35B₩33B₩31B₩30B₩30B
Discount factor———0.9590.9200.8820.8460.811
Present value———₩34B₩30B₩28B₩26B₩24B

Terminal value ₩1T, worth ₩847B today: 86% 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 ₩71,941 a share)Now 0.15×₩12,1700.17×₩23,8920.33×₩76,1891.06×

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%
3.3%₩108,187₩156,021₩241,081₩434,681—
3.8%₩71,716₩101,227₩147,250₩229,090₩415,360
4.3%₩46,328₩66,089₩94,476₩138,744₩217,464
4.8%₩27,630₩41,627₩60,629₩87,926₩130,494
5.3%₩13,278₩23,608₩37,064₩55,331₩81,571

Now (TTM)

Market cap
₩54B
Enterprise value
₩613B
P/E
—
P/B
0.1×
P/S
0.0×
EV/EBITDA
8.7×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩14,950₩12,700₩19,280₩28,500₩48,229
Market cap₩75B₩64B₩97B₩144B₩243B
P/E———2.7×3.5×
P/B0.2×0.2×0.4×0.6×1.2×
P/S0.1×0.1×0.1×0.1×0.2×
EV/EBITDA7.8×18.9×——1.8×
Dividend yield0.0%3.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SGC E&C—0.1×0.0×8.7×0.0%
Hyundai Engineering & Construction22.7×1.1×0.4×—0.9%
Daewoo Engineering & Construction—1.3×0.6×—0.0%
GS Engineering & Construction19.3×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.9×0.5×0.4×—2.8%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: SGC E&C / 016250 / KRX:016250

Source: KRX statistical information