Ask Warren

TJ Media

032540 · KOSDAQ · ₩032540 · TJ미디어

₩3,795▲ ₩20 (0.53%)End-of-day · Oct 29, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩1,374

vs the current price (₩3,795)

Enterprise value
₩45B
Equity value
₩29B
WACC
6.8%

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 64% 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 ₩3,795, the model needs an operating margin of 8.3% every year (it uses 4.5%).
  • Or revenue growth +29.7 points a year higher than assumed in each of the 5 years.
  • 55% 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 20.5× against a typical 19.7× 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
₩1,374
−63.8%
Bull
₩4,028
+6.1%

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 (4.5%).

Revenue growth

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.2% a year, annual reports), fading to 3% by year 5.

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.2% 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 (3.2% a year, annual reports), fading to 3% by year 5.

Business

  • 4.5%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 1.3%

    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).

  • 1.7%

    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.

  • 4.08%

    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 0.03, 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)
₩83B
Net debt (borrowings and leases − cash and deposits)
₩16B
+ Stakes and investments
₩5.5M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩36M
Shares
20,897,413
Share price
₩3,795
Market cap
₩79B

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₩96B₩92B₩94B₩85B₩88B₩91B₩93B₩96B
Growth12.2%−4.7%2.8%3.2%3.2%3.1%3.1%3.0%
EBIT₩6.3B₩4.7B₩3.3B₩3.8B₩4B₩4.1B₩4.2B₩4.3B
EBIT margin6.6%5.1%3.5%4.5%4.5%4.5%4.5%4.5%
After-tax EBIT₩4.6B₩3.4B₩2.4B₩2.8B₩2.9B₩3B₩3.1B₩3.1B
+ Depreciation———₩1.1B₩1.1B₩1.2B₩1.2B₩1.3B
− Capital spending₩1.1B₩1.3B₩2.3B₩1.4B₩1.5B₩1.5B₩1.6B₩1.6B
− Working capital₩917M−₩5.2B₩2.6B₩780M₩805M₩804M₩829M₩827M
Free cash flow———₩1.7B₩1.7B₩1.8B₩1.8B₩1.9B
Discount factor———0.9360.8760.8200.7680.719
Present value———₩1.6B₩1.5B₩1.5B₩1.4B₩1.4B

Terminal value ₩52B, worth ₩37B 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 ₩3,837 a share)Now 0.99×₩3,0700.80×₩3,6860.96×₩4,4841.17×
Price / earnings (last 12 months: ₩185 a share)Now 20.5×₩2,71914.7×₩3,64619.7×₩4,62125.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩72 a share)Now 52.3×₩1,06714.7×₩1,43019.7×₩1,81325.0×

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%
5.8%₩1,665₩1,795₩1,957₩2,166₩2,447
6.3%₩1,423₩1,517₩1,631₩1,774₩1,958
6.8%₩1,223₩1,292₩1,374₩1,473₩1,598
7.3%₩1,055₩1,106₩1,165₩1,235₩1,321
7.8%₩912₩949₩992₩1,042₩1,101

Now (TTM)

Market cap
₩79B
Enterprise value
₩92B
P/E
20.5×
P/B
1.0×
P/S
1.0×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,755₩3,131₩4,122₩4,135₩3,368
Market cap₩78B₩65B₩86B₩86B₩70B
P/E19.7×14.1×18.3×19.3×22.0×
P/B0.9×0.8×1.0×1.0×0.9×
P/S0.8×0.7×0.9×1.0×1.1×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
TJ Media20.5×1.0×1.0×—0.0%
Samsung Electronics9.1×2.4×2.8×—0.7%
LG Electronics24.3×0.9×0.3×—0.9%
Hanwha Vision20.8×2.6×1.3×—0.0%
RFHIC41.5×3.7×6.8×—0.8%
KMW—5.3×8.6×—0.0%
Intellian Technologies13.9×2.1×1.7×—0.4%
Similar companies (median)20.8×2.5×2.2×—0.5%

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

Also known as: TJ Media / TJ미디어 / 032540 / KRX:032540

Source: KRX statistical information