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Korea Electric Terminal

025540 · KOSPI · ₩025540 · 한국단자

₩50,200▼ ₩800 (1.57%)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

₩165,160

vs the current price (₩50,200)

Enterprise value
₩1.5T
Equity value
₩1.7T
WACC
7.3%

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 229% 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 ₩50,200, the model needs an operating margin of 3.6% every year (it uses 8.6%).
  • 30% 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 4.2× against a typical 8.2× 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
₩95,199
+89.6%
Base
₩165,160
+229.0%
Bull
₩288,008
+473.7%

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 (8.6%).

Revenue growth

  • 7.3%

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

    Default: the last 3 years' revenue growth (7.3% a year, annual reports), fading to 3% by year 5.

  • 6.2%

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

    Default: the last 3 years' revenue growth (7.3% a year, annual reports), fading to 3% by year 5.

  • 5.1%

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

    Default: the last 3 years' revenue growth (7.3% a year, annual reports), fading to 3% by year 5.

  • 4.1%

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

    Default: the last 3 years' revenue growth (7.3% 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 (7.3% a year, annual reports), fading to 3% by year 5.

Business

  • 8.6%

    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.

  • 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).

  • 6.3%

    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).

  • 29.5%

    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 0.4, 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)
₩1.4T
Net debt (borrowings and leases − cash and deposits)
−₩134B
+ Stakes and investments
₩14B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩303M
Shares
10,115,000
Share price
₩50,200
Market cap
₩508B

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₩1.3T₩1.5T₩1.4T₩1.5T₩1.6T₩1.7T₩1.8T₩1.8T
Growth11.0%16.4%−4.4%7.3%6.2%5.1%4.1%3.0%
EBIT₩112B₩171B₩139B₩133B₩141B₩148B₩154B₩159B
EBIT margin8.6%11.3%9.7%8.6%8.6%8.6%8.6%8.6%
After-tax EBIT₩81B₩124B₩101B₩96B₩102B₩107B₩112B₩115B
+ Depreciation———₩77B₩82B₩86B₩90B₩92B
− Capital spending₩103B₩99B₩63B₩97B₩103B₩108B₩113B₩116B
− Working capital₩88B₩51B−₩880M₩31B₩28B₩25B₩21B₩16B
Free cash flow———₩45B₩53B₩60B₩68B₩75B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩42B₩46B₩49B₩51B₩53B

Terminal value ₩1.8T, worth ₩1.3T today: 84% 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 ₩118,977 a share)Now 0.42×₩67,5720.57×₩80,6570.68×₩94,7030.80×
Price / earnings (last 12 months: ₩12,040 a share)Now 4.17×₩57,2934.76×₩98,5168.18×₩149,14112.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩9,956 a share)Now 5.04×₩47,3754.76×₩81,4628.18×₩123,32412.4×

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%
6.3%₩178,183₩189,226₩202,786₩219,855₩242,024
6.8%₩162,902₩171,571₩182,002₩194,810₩210,930
7.3%₩150,070₩156,982₩165,160₩174,999₩187,079
7.8%₩139,147₩144,729₩151,241₩158,944₩168,211
8.3%₩129,740₩134,297₩139,549₩145,673₩152,917

Now (TTM)

Market cap
₩508B
Enterprise value
₩363B
P/E
4.2×
P/B
0.4×
P/S
0.4×
EV/EBITDA
—
Dividend yield
6.4%

Over time (at each year end)

20252024202320222021
Price₩67,300₩66,900₩75,000₩51,800₩76,300
Market cap₩681B₩677B₩759B₩524B₩772B
P/E6.4×4.8×10.4×10.8×12.3×
P/B0.6×0.6×0.8×0.6×0.9×
P/S0.5×0.4×0.6×0.4×0.8×
EV/EBITDA—————
Dividend yield4.8%3.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea Electric Terminal4.2×0.4×0.4×—6.4%
LS Electric57.7×10.5×3.9×35.7×0.0%
Hyosung Heavy Industries28.8×6.5×2.6×—0.4%
HD Hyundai Electric18.0×6.8×3.5×—0.0%
Gaon Cable105.6×12.8×2.3×55.0×0.0%
Sanil Electric24.9×6.8×7.6×—0.9%
Taihan Cable & Solution—2.1×0.9×—0.0%
Similar companies (median)28.8×6.8×3.1×45.4×0.0%

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

Also known as: Korea Electric Terminal / 한국단자 / 025540 / KRX:025540

Source: KRX statistical information