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Korea Information & Communication

025770 · KOSDAQ · ₩025770 · 한국정보통신

₩7,710▲ ₩120 (1.58%)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

₩23,810

vs the current price (₩7,710)

Enterprise value
₩695B
Equity value
₩892B
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 209% 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 ₩7,710, the model needs an operating margin of 1.0% every year (it uses 4.8%).
  • Today's P/E is 8.0× against a typical 10.0× 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
₩12,877
+67.0%
Base
₩23,810
+208.8%
Bull
₩42,899
+456.4%

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 (4.8%).

Revenue growth

  • 12%

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

    Default: the last 3 years' revenue growth (12% a year, annual reports), fading to 3% by year 5.

  • 9.7%

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

    Default: the last 3 years' revenue growth (12% a year, annual reports), fading to 3% by year 5.

  • 7.5%

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

    Default: the last 3 years' revenue growth (12% a year, annual reports), fading to 3% by year 5.

  • 5.2%

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

    Default: the last 3 years' revenue growth (12% 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 (12% a year, annual reports), fading to 3% by year 5.

Business

  • 4.8%

    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.

  • 0.8%

    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).

  • 5.3%

    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.

  • 4.08%

    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 0.26, 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)
₩893B
Net debt (borrowings and leases − cash and deposits)
−₩172B
+ Stakes and investments
₩25B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩72M
Shares
37,444,271
Share price
₩7,710
Market cap
₩289B

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₩725B₩791B₩836B₩1T₩1.1T₩1.2T₩1.2T₩1.3T
Growth21.8%9.1%5.7%12.0%9.7%7.5%5.2%3.0%
EBIT₩36B₩39B₩45B₩48B₩53B₩57B₩60B₩61B
EBIT margin4.9%4.9%5.4%4.8%4.8%4.8%4.8%4.8%
After-tax EBIT₩26B₩28B₩33B₩35B₩38B₩41B₩43B₩44B
+ Depreciation₩5.1B₩6.4B₩7.1B₩8B₩8.8B₩9.4B₩9.9B₩10B
− Capital spending₩7.4B₩9.3B₩5.9B₩10B₩11B₩12B₩12B₩13B
− Working capital₩24B₩28B−₩55B₩5.7B₩5.1B₩4.4B₩3.3B₩2B
Free cash flow−₩715M−₩2.4B₩89B₩27B₩31B₩34B₩37B₩40B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩25B₩27B₩28B₩28B₩28B

Terminal value ₩798B, worth ₩559B 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 ₩9,151 a share)Now 0.84×₩8,0040.87×₩11,0311.21×₩16,6461.82×
Price / earnings (last 12 months: ₩960 a share)Now 8.03×₩6,6486.92×₩9,62410.0×₩32,06733.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,089 a share)Now 7.08×₩7,5386.92×₩10,91110.0×₩36,35833.4×

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%
6.4%₩24,726₩26,285₩28,200₩30,606₩33,721
6.9%₩23,001₩24,262₩25,779₩27,642₩29,982
7.4%₩21,548₩22,583₩23,810₩25,286₩27,098
7.9%₩20,307₩21,169₩22,176₩23,370₩24,806
8.4%₩19,236₩19,961₩20,800₩21,780₩22,941

Now (TTM)

Market cap
₩289B
Enterprise value
₩108B
P/E
8.0×
P/B
0.8×
P/S
0.3×
EV/EBITDA
2.1×
Dividend yield
3.8%

Over time (at each year end)

20252024202320222021
Price₩7,660₩7,840₩9,490₩11,400₩9,430
Market cap₩287B₩294B₩355B₩427B₩353B
P/E7.8×6.7×11.8×19.5×32.8×
P/B0.9×1.0×1.3×1.7×1.6×
P/S0.3×0.4×0.5×0.7×0.7×
EV/EBITDA1.2×3.4×5.0×9.1×6.5×
Dividend yield3.8%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea Information & Communication8.0×0.8×0.3×2.1×3.8%
SK Telecom22.0×1.1×1.0×4.9×2.2%
KT8.9×0.6×0.4×—5.2%
LG Uplus11.1×0.7×0.4×2.8×0.0%
Hyundai Futurenet36.7×0.5×1.2×—4.9%
NICE Information & Telecommunication5.7×0.8×0.3×1.8×3.1%
Bucket Studio—1.4×8.4×—0.0%
Similar companies (median)11.1×0.7×0.7×2.8×2.6%

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

Also known as: Korea Information & Communication / 한국정보통신 / 025770 / KRX:025770

Source: KRX statistical information