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DCM

024090 · KOSPI · ₩024090 · 디씨엠

₩11,700▲ ₩10 (0.09%)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

₩23,740

vs the current price (₩11,700)

Enterprise value
₩152B
Equity value
₩271B
WACC
7.4%

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 is 103% 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 ₩11,700, the model needs an operating margin of 1.1% every year (it uses 6.4%).
  • Margins ranged from 4.1% to 13.9% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
  • 64% 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 9.9× against a typical 8.4× 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
₩17,227
+47.2%
Base
₩23,740
+102.9%
Bull
₩35,157
+200.5%

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 (6.4%).

Revenue growth

  • -1.9%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • -0.7%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 0.5%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.9% 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 (-1.9% a year, annual reports), fading to 3% by year 5.

Business

  • 6.4%

    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%

    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).

  • 1.3%

    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).

  • 16.4%

    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 -0.05, 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)
₩203B
Net debt (borrowings and leases − cash and deposits)
−₩69B
+ Stakes and investments
₩50B
Associates, long-term financial assets and deposits (book value)
Shares
11,400,000
Share price
₩11,700
Market cap
₩133B

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₩218B₩241B₩227B₩199B₩198B₩199B₩203B₩209B
Growth−9.3%10.4%−5.8%−1.9%−0.7%0.5%1.8%3.0%
EBIT₩9.1B₩17B₩9.6B₩13B₩13B₩13B₩13B₩13B
EBIT margin4.1%7.0%4.2%6.4%6.4%6.4%6.4%6.4%
After-tax EBIT₩6.6B₩12B₩6.9B₩9.2B₩9.2B₩9.2B₩9.4B₩9.7B
+ Depreciation———₩2B₩2B₩2B₩2B₩2.1B
− Capital spending₩3.3B₩3.7B₩2B₩2.6B₩2.6B₩2.6B₩2.6B₩2.7B
− Working capital−₩16B₩2.6B₩6.2B−₩633M−₩229M₩162M₩587M₩996M
Free cash flow———₩9.3B₩8.8B₩8.5B₩8.2B₩8.1B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩8.6B₩7.6B₩6.8B₩6.2B₩5.6B

Terminal value ₩167B, worth ₩117B today: 77% 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 ₩22,876 a share)Now 0.51×₩11,4400.50×₩12,5280.55×₩26,5181.16×
Price / earnings (last 12 months: ₩1,179 a share)Now 9.92×₩3,8483.26×₩9,8948.39×₩29,74725.2×

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%
6.4%₩24,620₩25,581₩26,759₩28,238₩30,151
6.9%₩23,407₩24,173₩25,095₩26,224₩27,642
7.4%₩22,384₩23,006₩23,740₩24,623₩25,705
7.9%₩21,511₩22,021₩22,616₩23,319₩24,165
8.4%₩20,756₩21,180₩21,668₩22,237₩22,910

Now (TTM)

Market cap
₩133B
Enterprise value
₩65B
P/E
9.9×
P/B
0.5×
P/S
0.7×
EV/EBITDA
—
Dividend yield
7.0%

Over time (at each year end)

20252024202320222021
Price₩12,500₩11,370₩11,100₩13,550₩23,300
Market cap₩143B₩130B₩127B₩154B₩266B
P/E12.1×6.9×—4.1×5.2×
P/B0.5×0.5×0.5×0.6×1.1×
P/S0.6×0.5×0.6×0.6×1.1×
EV/EBITDA—————
Dividend yield6.6%7.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
DCM9.9×0.5×0.7×—7.0%
POSCO Holdings16.2×0.4×0.3×7.7×3.6%
Korea Zinc18.6×1.6×0.9×—2.3%
Hyundai Steel—0.2×0.2×—1.9%
Poongsan8.1×0.7×0.3×5.9×2.9%
SeAH Besteel Holdings12.2×0.5×0.3×9.5×4.0%
Sama Aluminium—4.1×3.0×—0.0%
Similar companies (median)14.2×0.6×0.3×7.7×2.6%

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

Also known as: DCM / 디씨엠 / 024090 / KRX:024090

Source: KRX statistical information