Ask Warren

Woori Technology, Incorporation

032820 · KOSDAQ · ₩032820 · 우리기술

₩9,630▲ ₩460 (5.02%)End-of-day · Oct 28, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩96B
Equity value
−₩264B
WACC
8.5%

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 gives no positive value at these assumptions. What we can see:

  • No operating margin up to 90% gets the model to today's price at these growth assumptions.
  • Margins ranged from −6.3% to 13.9% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
—
Bull
—

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 (3.7%).

Revenue growth

  • 20.7%

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

    Default: the last 3 years' revenue growth (20.7% a year, annual reports), fading to 3% by year 5.

  • 16.3%

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

    Default: the last 3 years' revenue growth (20.7% a year, annual reports), fading to 3% by year 5.

  • 11.9%

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

    Default: the last 3 years' revenue growth (20.7% a year, annual reports), fading to 3% by year 5.

  • 7.4%

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

    Default: the last 3 years' revenue growth (20.7% 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 (20.7% a year, annual reports), fading to 3% by year 5.

Business

  • 3.7%

    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.

  • 42.9%

    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).

  • 53.7%

    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).

  • 40%

    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.

  • 0.88

    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 0.82, 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)
₩83B
Net debt (borrowings and leases − cash and deposits)
₩169B
Shares
172,784,612
Share price
₩9,630
Market cap
₩1.7T

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₩63B₩71B₩87B₩100B₩116B₩130B₩140B₩144B
Growth27.6%12.8%22.3%20.7%16.3%11.9%7.4%3.0%
EBIT₩6.7B₩554M−₩5.5B₩3.7B₩4.3B₩4.8B₩5.2B₩5.3B
EBIT margin10.6%0.8%−6.3%3.7%3.7%3.7%3.7%3.7%
After-tax EBIT₩4.8B₩402M−₩4B₩2.7B₩3.1B₩3.5B₩3.7B₩3.9B
+ Depreciation———₩43B₩50B₩56B₩60B₩62B
− Capital spending₩31B₩41B₩47B₩54B₩62B₩70B₩75B₩77B
− Working capital−₩3.4B₩2.6B−₩1.5B₩6.9B₩6.5B₩5.5B₩3.8B₩1.7B
Free cash flow———−₩15B−₩16B−₩16B−₩15B−₩13B
Discount factor———0.9220.8490.7830.7220.665
Present value———−₩14B−₩14B−₩13B−₩11B−₩8.9B

Terminal value −₩54B, worth −₩36B today: 38% 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 ₩1,095 a share)Now 8.80×₩2,7002.47×₩4,0183.67×₩12,30011.2×

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%
7.5%—————
8.0%—————
8.5%—————
9.0%—————
9.5%—————

Now (TTM)

Market cap
₩1.7T
Enterprise value
₩1.8T
P/E
—
P/B
8.8×
P/S
20.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,640₩1,666₩1,285₩1,295₩1,655
Market cap₩629B₩288B₩222B₩224B₩286B
P/E793.7×—44.1×66.4×45.7×
P/B5.0×2.6×2.1×2.3×3.6×
P/S7.2×4.0×3.5×4.5×5.5×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Woori Technology, Incorporation—8.8×20.1×—0.0%
LS Electric63.5×11.6×4.3×39.3×0.0%
Hyosung Heavy Industries31.8×7.2×2.9×—0.4%
HD Hyundai Electric19.6×7.4×3.8×—0.0%
Gaon Cable117.0×14.2×2.6×61.1×0.0%
Sanil Electric27.9×7.6×8.5×—0.8%
Taihan Cable & Solution—2.3×1.0×—0.0%
Similar companies (median)31.8×7.5×3.4×50.2×0.0%

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

Also known as: Woori Technology, Incorporation / 우리기술 / 032820 / KRX:032820

Source: KRX statistical information