SONGWOO Information & Technology송우인포텍
0203K0 · KONEX · ₩0203K0 · 송우인포텍
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
₩6,015
vs the current price (₩10,850)
- Enterprise value
- ₩11B
- Equity value
- ₩18B
- WACC
- 9.5%
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 ₩10,850, the model needs an operating margin of 26.5% every year (it uses 12.1%).
- Or revenue growth +21.1 points a year higher than assumed in each of the 5 years.
- 60% 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.
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
- ₩4,677
- −56.9%
- Base
- ₩6,015
- −44.6%
- Bull
- ₩8,044
- −25.9%
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Margin path
Every year uses the cycle-average margin (12.1%).
Revenue growth
- 3%
How much sales grow that year, compared with the year before.
Default: not enough revenue history, so 3%.
- 3%
How much sales grow that year, compared with the year before.
Default: not enough revenue history, so 3%.
- 3%
How much sales grow that year, compared with the year before.
Default: not enough revenue history, so 3%.
- 3%
How much sales grow that year, compared with the year before.
Default: not enough revenue history, so 3%.
- 3%
How much sales grow that year, compared with the year before.
Default: not enough revenue history, so 3%.
Business
- 12.1%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 1 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.
- 8.5%
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).
- 10.6%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 1 annual reports (cash flow statements; equipment and intangibles).
- -3.2%
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 1 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.
- 1
How much the share moves when the market moves: 1 means just like the market.
Default: not enough price history yet, so 1.0 (the market average).
- 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 (FY 2025)
- ₩9.8B
- Net debt (borrowings and leases − cash and deposits)
- −₩7.5B
- Shares
- 3,000,000
- Share price
- ₩10,850
- Market cap
- ₩33B
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.
| FY2025 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Revenue | ₩9.8B | ₩10B | ₩10B | ₩11B | ₩11B | ₩11B |
| Growth | — | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% |
| EBIT | ₩1.2B | ₩1.2B | ₩1.3B | ₩1.3B | ₩1.3B | ₩1.4B |
| EBIT margin | 12.1% | 12.1% | 12.1% | 12.1% | 12.1% | 12.1% |
| After-tax EBIT | ₩856M | ₩884M | ₩911M | ₩938M | ₩966M | ₩995M |
| + Depreciation | — | ₩857M | ₩883M | ₩909M | ₩936M | ₩964M |
| − Capital spending | ₩1B | ₩1.1B | ₩1.1B | ₩1.1B | ₩1.2B | ₩1.2B |
| − Working capital | — | −₩9.4M | −₩9.7M | −₩10M | −₩10M | −₩11M |
| Free cash flow | — | ₩682M | ₩703M | ₩724M | ₩745M | ₩768M |
| Discount factor | — | 0.913 | 0.834 | 0.761 | 0.695 | 0.635 |
| Present value | — | ₩623M | ₩586M | ₩551M | ₩518M | ₩487M |
Terminal value ₩12B, worth ₩7.8B today: 74% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.
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% |
|---|---|---|---|---|---|
| 8.5% | ₩6,125 | ₩6,337 | ₩6,582 | ₩6,867 | ₩7,205 |
| 9.0% | ₩5,887 | ₩6,070 | ₩6,278 | ₩6,519 | ₩6,800 |
| 9.5% | ₩5,677 | ₩5,836 | ₩6,015 | ₩6,221 | ₩6,457 |
| 10.0% | ₩5,491 | ₩5,630 | ₩5,786 | ₩5,962 | ₩6,164 |
| 10.5% | ₩5,325 | ₩5,447 | ₩5,583 | ₩5,737 | ₩5,910 |
Now (TTM)
- Market cap
- ₩33B
- Enterprise value
- ₩25B
- P/E
- 15.2×
- P/B
- 2.3×
- P/S
- 3.3×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
Loading data for this company — check back soon
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| SONGWOO Information & Technology | 15.2× | 2.3× | 3.3× | — | 0.0% |
| Hyundai Autoever | 47.8× | 4.8× | 2.0× | — | 0.6% |
| Krafton | 10.0× | 1.2× | 1.9× | — | 1.2% |
| NC | 7.0× | 1.2× | 2.1× | 8.4× | 0.6% |
| Netmarble | 7.1× | 0.5× | 1.0× | — | 2.6% |
| PearlAbyss | 8.0× | 2.1× | 3.0× | 5.2× | 0.0% |
| Shift UP | 9.0× | 1.8× | 7.2× | — | 0.0% |
| Similar companies (median) | 8.5× | 1.5× | 2.0× | 6.8× | 0.6% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: SONGWOO Information & Technology / 송우인포텍 / 0203K0 / KRX:0203K0
Source: KRX statistical information