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MKElectron

033160 · KOSDAQ · ₩033160 · 엠케이전자

₩13,570▲ ₩410 (3.12%)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

₩45,101

vs the current price (₩13,570)

Enterprise value
₩1.6T
Equity value
₩1.1T
WACC
5.6%

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 232% 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 ₩13,570, the model needs an operating margin of 3.1% every year (it uses 4.9%).
  • Or revenue growth −23.5 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 1.0% to 11.3% 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.
  • 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.

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
₩1,684
−87.6%
Base
₩45,101
+232.4%
Bull
₩138,396
+919.9%

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 (4.9%).

Revenue growth

  • 11.1%

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

    Default: the last 3 years' revenue growth (11.1% a year, annual reports), fading to 3% by year 5.

  • 9.1%

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

    Default: the last 3 years' revenue growth (11.1% a year, annual reports), fading to 3% by year 5.

  • 7.1%

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

    Default: the last 3 years' revenue growth (11.1% a year, annual reports), fading to 3% by year 5.

  • 5%

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

    Default: the last 3 years' revenue growth (11.1% 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 (11.1% a year, annual reports), fading to 3% by year 5.

Business

  • 4.9%

    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.

  • 1.4%

    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).

  • 1.8%

    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).

  • 27.7%

    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.

  • 0.68

    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 0.52, 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)
₩1.7T
Net debt (borrowings and leases − cash and deposits)
₩475B
Shares
24,564,058
Share price
₩13,570
Market cap
₩333B

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₩1.1T₩1.2T₩1.4T₩1.9T₩2.1T₩2.2T₩2.3T₩2.4T
Growth9.2%4.8%19.9%11.1%9.1%7.1%5.0%3.0%
EBIT₩46B₩56B₩14B₩93B₩101B₩108B₩114B₩117B
EBIT margin4.2%4.8%1.0%4.9%4.9%4.9%4.9%4.9%
After-tax EBIT₩34B₩41B₩10B₩67B₩73B₩78B₩82B₩85B
+ Depreciation₩17B₩16B₩17B₩26B₩29B₩31B₩32B₩33B
− Capital spending₩45B₩14B₩4.2B₩34B₩37B₩40B₩42B₩43B
− Working capital₩23B₩21B₩478B₩52B₩48B₩41B₩31B₩19B
Free cash flow−₩17B₩23B−₩455B₩7.3B₩17B₩29B₩42B₩56B
Discount factor———0.9470.8960.8490.8030.761
Present value———₩6.9B₩16B₩25B₩34B₩43B

Terminal value ₩1.9T, worth ₩1.5T today: 92% 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 ₩16,916 a share)Now 0.80×₩9,1470.54×₩12,7550.75×₩18,2001.08×

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%
4.6%₩53,542₩61,265₩71,887₩87,454₩112,522
5.1%₩43,853₩49,251₩56,342₩66,093₩80,379
5.6%₩36,276₩40,166₩45,101₩51,582₩60,491
6.1%₩30,192₩33,060₩36,600₩41,088₩46,979
6.6%₩25,202₩27,354₩29,949₩33,150₩37,206

Now (TTM)

Market cap
₩333B
Enterprise value
₩739B
P/E
15.4×
P/B
0.8×
P/S
0.2×
EV/EBITDA
12.0×
Dividend yield
0.9%

Over time (at each year end)

20252024202320222021
Price₩8,400₩6,580₩12,230₩11,200₩18,500
Market cap₩206B₩162B₩300B₩275B₩454B
P/E155.1×———13.6×
P/B0.5×0.5×0.8×0.7×1.1×
P/S0.1×0.1×0.3×0.3×0.5×
EV/EBITDA37.8×10.7×14.8×5.9×6.1×
Dividend yield1.4%1.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
MKElectron15.4×0.8×0.2×12.0×0.9%
Samsung Electro-Mechanics89.0×8.8×7.2×—0.2%
Doosan36.8×5.2×0.7×—0.4%
Hanwha Systems67.9×2.7×2.9×—0.8%
LG Innotek13.4×1.4×0.4×—0.5%
Isupetasys32.5×7.6×5.0×—0.0%
Daeduck Electronics41.5×6.5×4.7×—0.4%
Similar companies (median)39.2×5.8×3.8×—0.4%

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

Also known as: MKElectron / 엠케이전자 / 033160 / KRX:033160

Source: KRX statistical information