KOSPI · 031820 · IT services · ₩031820

Itcencts아이티센씨티에스

031820 · KOSPI · ₩031820 · 아이티센씨티에스

₩5,080▼ ₩140 (2.68%)End-of-day · Oct 29, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩14,308

vs the current price (₩5,080)

Enterprise value: ₩182B
Equity value: ₩173B
WACC: 13.6%

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 182% 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 ₩5,080, the model needs an operating margin of 1.4% every year (it uses 2.5%).
Or revenue growth −28.1 points a year higher than assumed in each of the 5 years.
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.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 0.7× against a typical 3.2× 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: —
Base: ₩14,308; +181.7%
Bull: ₩37,875; +645.6%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (2.5%).

Revenue growth

Revenue growth, year 115.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (15.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 212.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (15.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 39.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (15.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 46.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (15.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (15.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.5%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation2.2%
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).
Capital spending2.8%
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).
Working capital2.2%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
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.
Beta2
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 6.3, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩1.1T
Net debt (borrowings and leases − cash and deposits): ₩9.2B
Shares: 12,105,146
Share price: ₩5,080
Market cap: ₩61B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩893B	₩995B	₩1.1T	₩1.3T	₩1.5T	₩1.6T	₩1.7T	₩1.8T
Growth	25.7%	11.5%	10.0%	15.6%	12.4%	9.3%	6.1%	3.0%
EBIT	₩16B	₩21B	₩24B	₩33B	₩37B	₩41B	₩43B	₩44B
EBIT margin	1.7%	2.1%	2.2%	2.5%	2.5%	2.5%	2.5%	2.5%
After-tax EBIT	₩11B	₩15B	₩17B	₩24B	₩27B	₩29B	₩31B	₩32B
+ Depreciation	—	—	—	₩29B	₩33B	₩36B	₩38B	₩39B
− Capital spending	₩2.5B	₩56B	₩27B	₩37B	₩42B	₩46B	₩48B	₩50B
− Working capital	₩67B	−₩8.1B	−₩46B	₩3.9B	₩3.6B	₩3B	₩2.2B	₩1.1B
Free cash flow	—	—	—	₩12B	₩14B	₩17B	₩19B	₩20B
Discount factor	—	—	—	0.880	0.774	0.681	0.600	0.528
Present value	—	—	—	₩11B	₩11B	₩11B	₩11B	₩11B

Terminal value ₩241B, worth ₩127B today: 70% 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:

	Low	Typical	High
Price / book (book value ₩20,933 a share)Now 0.24×	₩7,5840.36×	₩10,9920.53×	₩16,8180.80×
Price / earnings (last 12 months: ₩6,838 a share)Now 0.74×	₩7,1501.05×	₩21,8483.20×	₩128,83518.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,737 a share)Now 2.92×	₩1,8171.05×	₩5,5513.20×	₩32,73518.8×

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%
12.6%	₩14,953	₩15,424	₩15,939	₩16,503	₩17,126
13.1%	₩14,205	₩14,627	₩15,086	₩15,587	₩16,137
13.6%	₩13,518	₩13,897	₩14,308	₩14,755	₩15,244
14.1%	₩12,885	₩13,227	₩13,597	₩13,997	₩14,433
14.6%	₩12,301	₩12,610	₩12,943	₩13,303	₩13,694

Now (TTM)

Market cap: ₩61B
Enterprise value: ₩71B
P/E: 0.7×
P/B: 0.2×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩5,920	₩5,340	₩7,640	₩6,070	₩9,300
Market cap	₩72B	₩65B	₩92B	₩73B	₩113B
P/E	1.4×	2.6×	27.9×	2.2×	24.2×
P/B	0.3×	0.4×	0.6×	0.5×	0.8×
P/S	0.1×	0.1×	0.1×	0.1×	0.3×
EV/EBITDA	—	—	—	—	1.5×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Itcencts	0.7×	0.2×	0.1×	—	0.0%
Samsung SDS	24.6×	1.5×	1.1×	—	1.5%
LG CNS	15.5×	2.5×	1.2×	—	2.4%
Itcenglobal	7.0×	3.0×	0.0×	—	0.0%
DB	7.2×	1.0×	0.7×	16.4×	0.0%
Lotte Innovate	15.0×	0.6×	0.2×	—	4.1%
Shinsegae Information & Communication	6.3×	0.4×	0.3×	0.8×	0.0%
Similar companies (median)	11.1×	1.3×	0.5×	8.6×	0.8%

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

Also known as: Itcencts / 아이티센씨티에스 / 031820 / KRX:031820

Source: KRX statistical information