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E1

017940 · KOSPI · ₩017940 · E1

₩83,100▼ ₩100 (0.12%)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

With these assumptions the model gives no positive value.

Enterprise value
₩3.6T
Equity value
−₩1.3T
WACC
4.4%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩83,100, the model needs an operating margin of 2.1% every year (it uses 1.7%).
  • 67% 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 3.2× against a typical 3.9× 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
—
Base
—
Bull
₩3,159,319
+3,701.8%

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 (1.7%).

Revenue growth

  • 9.2%

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

    Default: the last 3 years' revenue growth (9.2% a year, annual reports), fading to 3% by year 5.

  • 7.6%

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

    Default: the last 3 years' revenue growth (9.2% a year, annual reports), fading to 3% by year 5.

  • 6.1%

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

    Default: the last 3 years' revenue growth (9.2% 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 (9.2% 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 (9.2% a year, annual reports), fading to 3% by year 5.

Business

  • 1.7%

    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.

  • 1.7%

    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).

  • 0.6%

    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).

  • 28.3%

    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 0.14, 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)
₩13T
Net debt (borrowings and leases − cash and deposits)
₩4.5T
+ Stakes and investments
₩237B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩601B
Shares
6,860,000
Share price
₩83,100
Market cap
₩570B

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₩7.8T₩11T₩10T₩15T₩16T₩17T₩17T₩18T
Growth−2.0%43.0%−7.1%9.2%7.6%6.1%4.5%3.0%
EBIT₩93B₩218B₩324B₩248B₩267B₩283B₩296B₩305B
EBIT margin1.2%1.9%3.1%1.7%1.7%1.7%1.7%1.7%
After-tax EBIT₩68B₩158B₩235B₩180B₩193B₩205B₩214B₩221B
+ Depreciation₩131B——₩248B₩267B₩283B₩296B₩305B
− Capital spending₩30B₩60B₩106B₩87B₩94B₩100B₩104B₩107B
− Working capital₩130B₩2.8T₩362B₩348B₩314B₩271B₩212B₩148B
Free cash flow₩39B——−₩7.5B₩52B₩117B₩194B₩270B
Discount factor———0.9580.9180.8800.8430.808
Present value———−₩7.2B₩48B₩103B₩163B₩218B

Terminal value ₩3.8T, worth ₩3.1T today: 85% 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 ₩314,150 a share)Now 0.26×₩71,2400.23×₩82,5650.26×₩104,4290.33×
Price / earnings (last 12 months: ₩25,681 a share)Now 3.24×₩40,8871.59×₩100,2253.90×₩223,8508.72×
P/E on run-rate earnings (Q2 2026 × 4: ₩46,677 a share)Now 1.78×₩74,3151.59×₩182,1673.90×₩406,8658.72×

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%
3.4%₩104,608₩136,200₩188,625₩297,964—
3.9%—————
4.4%—————
4.9%—————
5.4%—————

Now (TTM)

Market cap
₩570B
Enterprise value
₩4.7T
P/E
3.2×
P/B
0.3×
P/S
0.0×
EV/EBITDA
—
Dividend yield
5.5%

Over time (at each year end)

20252024202320222021
Price₩83,300₩68,700₩62,300₩45,450₩48,200
Market cap₩571B₩471B₩427B₩312B₩331B
P/E5.5×7.5×2.0×2.2×2.5×
P/B0.3×0.3×0.3×0.2×0.3×
P/S0.1×0.0×0.1×0.0×0.1×
EV/EBITDA——7.9×4.5×15.4×
Dividend yield5.5%5.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
E13.2×0.3×0.0×—5.5%
Samsung C&T18.1×0.5×1.2×—0.9%
POSCO International10.3×1.2×0.3×—3.8%
ISC42.6×5.7×11.9×—0.5%
Youngone5.2×0.7×0.7×—3.0%
Dong SUH Companies19.6×1.7×5.3×—4.0%
SK Gas7.4×0.6×0.3×—3.5%
Similar companies (median)14.2×1.0×0.9×—3.3%

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

Also known as: E1 / 017940 / KRX:017940

Source: KRX statistical information