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Dongshin Engineering & Construction

025950 · KOSDAQ · ₩025950 · 동신건설

₩9,900▲ ₩950 (10.61%)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

₩3,298

vs the current price (₩9,900)

Enterprise value
−₩2.8B
Equity value
₩28B
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 67% 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 ₩9,900, the model needs an operating margin of 16.1% every year (it uses 0.6%).
  • Margins ranged from −6.6% to 7.7% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
₩2,932
−70.4%
Base
₩3,298
−66.7%
Bull
₩4,168
−57.9%

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 (0.6%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-12.8% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-12.8% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-12.8% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-12.8% 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 (-12.8% a year, annual reports), fading to 3% by year 5.

Business

  • 0.6%

    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.

  • 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).

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • 40%

    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 0.38, 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)
₩34B
Net debt (borrowings and leases − cash and deposits)
−₩19B
+ Stakes and investments
₩12B
Associates, long-term financial assets and deposits (book value)
Shares
8,400,000
Share price
₩9,900
Market cap
₩83B

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₩83B₩69B₩33B₩31B₩29B₩28B₩28B₩28B
Growth64.5%−16.6%−51.6%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩6.3B₩586M−₩2.2B₩184M₩172M₩166M₩165M₩170M
EBIT margin7.7%0.8%−6.6%0.6%0.6%0.6%0.6%0.6%
After-tax EBIT₩4.6B₩425M−₩1.6B₩133M₩124M₩120M₩120M₩123M
+ Depreciation₩467M₩391M₩393M₩245M₩229M₩221M₩220M₩227M
− Capital spending———₩1.2B₩1.1B₩1.1B₩1.1B₩1.1B
− Working capital₩22B−₩1.9B₩5.9B−₩1.4B−₩821M−₩400M−₩22M₩331M
Free cash flow———₩515M₩31M−₩363M−₩739M−₩1.1B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩479M₩27M−₩293M−₩556M−₩781M

Terminal value −₩2.4B, worth −₩1.7B today: 60% 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 ₩11,586 a share)Now 0.85×₩13,0381.13×₩19,3001.67×₩40,5893.50×

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%₩3,469₩3,364₩3,233₩3,068₩2,852
6.9%₩3,475₩3,382₩3,269₩3,129₩2,951
7.4%₩3,481₩3,398₩3,298₩3,177₩3,028
7.9%₩3,486₩3,411₩3,323₩3,217₩3,089
8.4%₩3,491₩3,423₩3,344₩3,251₩3,139

Now (TTM)

Market cap
₩83B
Enterprise value
₩64B
P/E
—
P/B
0.9×
P/S
2.4×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩19,970₩44,850₩17,270₩12,550₩38,150
Market cap₩168B₩377B₩145B₩105B₩320B
P/E1,138.3×125.5×18.5×17.4×—
P/B1.7×3.8×1.5×1.2×3.8×
P/S5.0×5.5×1.8×2.1×5.6×
EV/EBITDA—360.5×18.0×35.4×75.6×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dongshin Engineering & Construction—0.9×2.4×—0.0%
Hyundai Engineering & Construction22.7×1.1×0.4×—0.9%
Daewoo Engineering & Construction—1.3×0.6×—0.0%
GS Engineering & Construction19.3×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.9×0.5×0.4×—2.8%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Dongshin Engineering & Construction / 동신건설 / 025950 / KRX:025950

Source: KRX statistical information