Sigong Tech

020710 · KOSDAQ · ₩020710 · 시공테크

₩3,325▼ ₩90 (2.64%)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

₩3,247

vs the current price (₩3,325)

Enterprise value
₩69B
Equity value
₩65B
WACC
7.2%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Bear / Base / Bull

Bear
₩426
−87.2%
Base
₩3,247
−2.3%
Bull
₩8,381
+152.1%

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 (3.1%).

Revenue growth

  • 18.9%

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

    Default: the last 3 years' revenue growth (18.9% a year, annual reports), fading to 3% by year 5.

  • 14.9%

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

    Default: the last 3 years' revenue growth (18.9% a year, annual reports), fading to 3% by year 5.

  • 10.9%

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

    Default: the last 3 years' revenue growth (18.9% a year, annual reports), fading to 3% by year 5.

  • 7%

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

    Default: the last 3 years' revenue growth (18.9% 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 (18.9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.1%

    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.

  • 1.6%

    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).

  • 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).

  • 11%

    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.

  • 4.08%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 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 0.02, 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.

  • 5.58%

    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)
₩128B
Net debt (borrowings and leases − cash and deposits)
₩4.2B
Shares
20,047,970
Share price
₩3,325
Market cap
₩67B

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₩135B₩147B₩168B₩152B₩175B₩194B₩208B₩214B
Growth34.6%9.1%14.4%18.9%14.9%10.9%7.0%3.0%
EBIT₩5.6B₩6.4B₩15B₩4.7B₩5.4B₩6B₩6.4B₩6.6B
EBIT margin4.2%4.4%9.0%3.1%3.1%3.1%3.1%3.1%
After-tax EBIT₩4.1B₩4.7B₩11B₩3.4B₩3.9B₩4.4B₩4.7B₩4.8B
+ Depreciation₩2.3B₩2.1B—₩2.4B₩2.8B₩3.1B₩3.3B₩3.4B
− Capital spending₩1.9B₩1.6B₩668M₩1.5B₩1.8B₩1.9B₩2.1B₩2.1B
− Working capital₩16B−₩5.4B₩2.8B₩2.7B₩2.5B₩2.1B₩1.5B₩686M
Free cash flow−₩11B₩11B—₩1.7B₩2.5B₩3.4B₩4.4B₩5.4B
Discount factor———0.9330.8700.8120.7580.707
Present value———₩1.6B₩2.2B₩2.8B₩3.4B₩3.8B

Terminal value ₩79B, worth ₩56B today: 80% 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 ₩9,252 a share)Now 0.36×₩4,0630.44×₩6,1970.67×₩9,6081.04×
Price / earnings (last 12 months: ₩1,431 a share)Now 2.32×₩3,2272.26×₩14,88910.4×₩49,22634.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,757 a share)Now 1.89×₩3,9612.26×₩18,27510.4×₩60,42034.4×

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%
6.2%₩3,543₩3,792₩4,098₩4,486₩4,995
6.7%₩3,199₩3,393₩3,627₩3,916₩4,282
7.2%₩2,911₩3,064₩3,247₩3,467₩3,740
7.7%₩2,666₩2,789₩2,934₩3,105₩3,313
8.2%₩2,455₩2,555₩2,671₩2,807₩2,968

Now (TTM)

Market cap
₩67B
Enterprise value
₩71B
P/E
2.3×
P/B
0.4×
P/S
0.5×
EV/EBITDA
—
Dividend yield
10.2%

Over time (at each year end)

20252024202320222021
Price₩4,160₩4,045₩4,355₩4,200₩6,610
Market cap₩83B₩81B₩87B₩84B₩133B
P/E2.7×2.7×10.5×12.2×46.8×
P/B0.4×0.5×0.7×0.7×1.2×
P/S0.5×0.6×0.6×0.8×1.4×
EV/EBITDA—8.2×10.3×—344.9×
Dividend yield8.1%3.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sigong Tech2.3×0.4×0.5×—10.2%
S-124.0×2.1×1.3×—0.0%
Cheil Worldwide9.8×1.3×0.5×—6.5%
Doosan Tesna54.7×4.1×5.7×—0.2%
Lotte Tour Development15.4×2.2×1.1×—0.0%
Soulbrain Holdings1.3×0.4×1.3×—1.3%
Innocean Worldwide5.5×0.6×0.3×—6.7%
Similar companies (median)12.6×1.7×1.2×—0.7%

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

Also known as: Sigong Tech / 시공테크 / 020710 / KRX:020710

Source: KRX statistical information