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Softcen

032680 · KOSDAQ · ₩032680 · 소프트센

₩838▼ ₩4 (0.48%)End-of-day · Oct 27, 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

₩2,012

vs the current price (₩838)

Enterprise value
₩16B
Equity value
₩47B
WACC
11.0%

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 140% 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 ₩838, the model needs an operating margin of −2.2% every year (it uses 5.0%).
  • Margins ranged from −2.3% to 22.2% 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.

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
₩1,620
+93.3%
Base
₩2,012
+140.1%
Bull
₩2,617
+212.3%

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 (5.0%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-99.1% 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 (-99.1% 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 (-99.1% 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 (-99.1% 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 (-99.1% a year, annual reports), fading to 3% by year 5.

Business

  • 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.

  • 0.9%

    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).

  • 2.3%

    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).

  • 6.9%

    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.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 1.25

    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 1.38, 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.

  • 5.61%

    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)
₩60B
Net debt (borrowings and leases − cash and deposits)
−₩48B
+ Stakes and investments
₩321M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩18B
Shares
23,127,243
incl. 71,362 preferred
Share price
₩838
Market cap
₩19B

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₩61B₩60B₩55B₩54B₩50B₩48B₩48B₩50B
Growth−100.0%−1.9%−8.5%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩1.4B−₩1.4B−₩244M₩2.7B₩2.5B₩2.4B₩2.4B₩2.5B
EBIT margin−2.3%−2.3%−0.4%5.0%5.0%5.0%5.0%5.0%
After-tax EBIT−₩1B−₩997M−₩177M₩1.9B₩1.8B₩1.8B₩1.7B₩1.8B
+ Depreciation₩560M₩554M₩523M₩483M₩451M₩435M₩434M₩447M
− Capital spending₩2.8B₩833M₩584M₩1.2B₩1.2B₩1.1B₩1.1B₩1.1B
− Working capital−₩15,621T₩2.8B−₩5.3B−₩411M−₩248M−₩121M−₩6.7M₩100M
Free cash flow₩15,621T−₩4.1B₩5.1B₩1.6B₩1.4B₩1.2B₩1.1B₩1B
Discount factor———0.9010.8120.7320.6590.594
Present value———₩1.4B₩1.1B₩875M₩712M₩597M

Terminal value ₩19B, worth ₩11B today: 71% 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 ₩2,358 a share)Now 0.36×₩1,0040.43×₩2,3170.98×₩4,6691.98×

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%
10.0%₩2,045₩2,073₩2,104₩2,140₩2,180
10.5%₩2,004₩2,028₩2,056₩2,086₩2,120
11.0%₩1,968₩1,989₩2,012₩2,038₩2,068
11.5%₩1,934₩1,953₩1,974₩1,996₩2,022
12.0%₩1,904₩1,921₩1,939₩1,959₩1,981

Now (TTM)

Market cap
₩19B
Enterprise value
−₩29B
P/E
—
P/B
0.4×
P/S
0.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩1,550₩1,460₩2,935₩3,119₩4,889
Market cap₩36B₩34B₩68B₩72B₩113B
P/E———0.0×7.5×
P/B0.7×0.6×1.3×0.0×2.0×
P/S0.7×0.6×1.1×0.0×1.2×
EV/EBITDA————4.4×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Softcen—0.4×0.3×—0.0%
NAVER13.1×0.9×2.0×—1.5%
Kakao37.7×1.1×1.6×—0.3%
Daou Technology1.9×0.4×0.0×—5.6%
NICE Information Service11.3×2.0×1.6×6.6×3.0%
Kinx24.4×2.7×3.5×10.7×0.5%
Cafe2411.5×1.5×1.3×—0.0%
Similar companies (median)12.3×1.3×1.6×6.6×1.0%

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

Also known as: Softcen / 소프트센 / 032680 / KRX:032680

Source: KRX statistical information