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Dong SUH Companies

026960 · KOSPI · ₩026960 · 동서

₩28,450▲ ₩650 (2.34%)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

₩12,472

vs the current price (₩28,450)

Enterprise value
₩524B
Equity value
₩1.2T
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 56% 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 ₩28,450, the model needs an operating margin of 30.6% every year (it uses 8.1%).
  • Or revenue growth +41.8 points a year higher than assumed in each of the 5 years.
  • 79% 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 19.6× against a typical 17.1× 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
₩10,217
−64.1%
Base
₩12,472
−56.2%
Bull
₩16,418
−42.3%

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 (8.1%).

Revenue growth

  • -1.4%

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

    Default: the last 3 years' revenue growth (-1.4% a year, annual reports), fading to 3% by year 5.

  • -0.3%

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

    Default: the last 3 years' revenue growth (-1.4% a year, annual reports), fading to 3% by year 5.

  • 0.8%

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

    Default: the last 3 years' revenue growth (-1.4% a year, annual reports), fading to 3% by year 5.

  • 1.9%

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

    Default: the last 3 years' revenue growth (-1.4% 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 (-1.4% a year, annual reports), fading to 3% by year 5.

Business

  • 8.1%

    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.

  • 0.3%

    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).

  • 0.4%

    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).

  • 26.8%

    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 0.01, 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)
₩538B
Net debt (borrowings and leases − cash and deposits)
−₩724B
+ Stakes and investments
₩10B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩15B
Shares
99,700,000
Share price
₩28,450
Market cap
₩2.8T

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₩490B₩489B₩533B₩531B₩529B₩533B₩543B₩560B
Growth−12.0%−0.2%9.0%−1.4%−0.3%0.8%1.9%3.0%
EBIT₩44B₩44B₩45B₩43B₩43B₩43B₩44B₩45B
EBIT margin8.9%9.1%8.5%8.1%8.1%8.1%8.1%8.1%
After-tax EBIT₩32B₩32B₩33B₩31B₩31B₩31B₩32B₩33B
+ Depreciation———₩1.6B₩1.6B₩1.6B₩1.6B₩1.7B
− Capital spending₩3B₩1.3B₩2.1B₩2.1B₩2.1B₩2.1B₩2.2B₩2.2B
− Working capital−₩644B₩78B₩38B−₩2B−₩427M₩1.1B₩2.7B₩4.4B
Free cash flow———₩33B₩31B₩30B₩29B₩28B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩30B₩27B₩24B₩22B₩20B

Terminal value ₩571B, worth ₩401B 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 ₩17,231 a share)Now 1.65×₩19,7381.15×₩25,8501.50×₩32,1591.87×
Price / earnings (last 12 months: ₩1,449 a share)Now 19.6×₩13,4599.29×₩24,81617.1×₩28,97820.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,637 a share)Now 17.4×₩15,2039.29×₩28,03217.1×₩32,73320.0×

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%₩12,867₩13,230₩13,676₩14,238₩14,968
6.8%₩12,380₩12,666₩13,011₩13,435₩13,969
7.3%₩11,970₩12,200₩12,472₩12,799₩13,202
7.8%₩11,621₩11,807₩12,025₩12,283₩12,594
8.3%₩11,319₩11,473₩11,649₩11,856₩12,100

Now (TTM)

Market cap
₩2.8T
Enterprise value
₩2.1T
P/E
19.6×
P/B
1.7×
P/S
5.3×
EV/EBITDA
—
Dividend yield
4.0%

Over time (at each year end)

20252024202320222021
Price₩26,850₩27,350₩18,200₩20,200₩31,000
Market cap₩2.7T₩2.7T₩1.8T₩2T₩3.1T
P/E18.5×17.3×12.5×12.0×27.3×
P/B1.6×1.6×1.1×1.3×2.2×
P/S5.0×5.6×3.7×3.6×5.8×
EV/EBITDA—————
Dividend yield4.2%3.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dong SUH Companies19.6×1.7×5.3×—4.0%
Samsung C&T18.1×0.5×1.2×—0.9%
POSCO International10.3×1.2×0.3×—3.8%
ISC42.6×5.7×11.9×—0.5%
Youngone5.2×0.7×0.7×—3.0%
SK Gas7.4×0.6×0.3×—3.5%
Lotte Shopping12.8×0.2×0.2×—4.9%
Similar companies (median)11.6×0.7×0.5×—3.3%

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

Also known as: Dong SUH Companies / 동서 / 026960 / KRX:026960

Source: KRX statistical information