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LG Uplus

032640 · KOSPI · ₩032640 · LG유플러스

₩13,790▲ ₩150 (1.10%)End-of-day · Oct 28, 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

₩22,491

vs the current price (₩13,790)

Enterprise value
₩14T
Equity value
₩9.5T
WACC
5.9%

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 63% 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 ₩13,790, the model needs an operating margin of 5.3% every year (it uses 6.5%).
  • Or revenue growth −7.9 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 10.9× against a typical 7.9× 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
₩3,818
−72.3%
Base
₩22,491
+63.1%
Bull
₩59,808
+333.7%

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 (6.5%).

Revenue growth

  • 3.6%

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

    Default: the last 3 years' revenue growth (3.6% a year, annual reports), fading to 3% by year 5.

  • 3.4%

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

    Default: the last 3 years' revenue growth (3.6% a year, annual reports), fading to 3% by year 5.

  • 3.3%

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

    Default: the last 3 years' revenue growth (3.6% 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 (3.6% 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 (3.6% a year, annual reports), fading to 3% by year 5.

Business

  • 6.5%

    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.

  • 17.9%

    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).

  • 16.6%

    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).

  • 7.3%

    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 0.08, 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)
₩15T
Net debt (borrowings and leases − cash and deposits)
₩4.5T
+ Stakes and investments
₩372B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩198B
Shares
424,427,732
Share price
₩13,790
Market cap
₩5.9T

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₩14T₩15T₩15T₩16T₩16T₩17T₩18T₩18T
Growth3.4%1.8%5.7%3.6%3.4%3.3%3.1%3.0%
EBIT₩998B₩863B₩892B₩1T₩1.1T₩1.1T₩1.1T₩1.2T
EBIT margin6.9%5.9%5.8%6.5%6.5%6.5%6.5%6.5%
After-tax EBIT₩724B₩626B₩647B₩750B₩775B₩801B₩826B₩850B
+ Depreciation₩2.6T₩2.7T₩2.7T₩2.8T₩2.9T₩3T₩3.1T₩3.2T
− Capital spending₩2.9T₩2.4T₩2T₩2.6T₩2.7T₩2.8T₩2.9T₩3T
− Working capital₩1.4T−₩46B₩262B₩40B₩39B₩40B₩38B₩38B
Free cash flow−₩999B₩931B₩1.1T₩916B₩950B₩982B₩1T₩1T
Discount factor———0.9440.8910.8410.7940.750
Present value———₩865B₩846B₩826B₩806B₩785B

Terminal value ₩13T, worth ₩9.8T 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:

LowTypicalHigh
Price / book (book value ₩21,372 a share)Now 0.65×₩10,5640.49×₩13,0960.61×₩16,3280.76×
Price / earnings (last 12 months: ₩1,261 a share)Now 10.9×₩8,0356.37×₩9,9717.91×₩17,67414.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,071 a share)Now 6.66×₩13,1926.37×₩16,3707.91×₩29,01714.0×

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%
4.9%₩24,275₩27,622₩32,107₩38,433₩48,032
5.4%₩20,861₩23,370₩26,607₩30,946₩37,064
5.9%₩18,127₩20,064₩22,491₩25,622₩29,817
6.4%₩15,886₩17,416₩19,289₩21,636₩24,663
6.9%₩14,013₩15,245₩16,724₩18,535₩20,804

Now (TTM)

Market cap
₩5.9T
Enterprise value
₩10T
P/E
10.9×
P/B
0.6×
P/S
0.4×
EV/EBITDA
2.8×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩14,720₩10,330₩10,230₩11,050₩13,600
Market cap₩6.2T₩4.4T₩4.3T₩4.7T₩5.8T
P/E11.9×11.7×7.0×7.1×8.1×
P/B0.7×0.5×0.5×0.6×0.8×
P/S0.4×0.3×0.3×0.3×0.4×
EV/EBITDA3.1×2.8×2.8×1.5×2.0×
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
LG Uplus10.9×0.6×0.4×2.8×0.0%
SK Telecom22.4×1.1×1.0×5.0×2.1%
KT8.8×0.6×0.4×—5.3%
Hyundai Futurenet36.6×0.5×1.2×—4.9%
NICE Information & Telecommunication5.7×0.8×0.3×1.8×3.0%
Korea Information & Communication7.9×0.8×0.3×2.0×3.8%
Dozn14.0×2.2×2.7×—1.3%
Similar companies (median)11.4×0.8×0.7×2.0×3.4%

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

Also known as: LG Uplus / LG유플러스 / 032640 / KRX:032640

Source: KRX statistical information