KOSPI · 034220 · Electronic components · ₩LGD

LG DisplayLG디스플레이

034220 · KOSPI · ₩LGD · LG디스플레이

₩7,620▲ ₩200 (2.70%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

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: −₩13T
Equity value: −₩27T
WACC: 5.1%

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:

To match today's price of ₩7,620, the model needs an operating margin of 3.8% every year (it uses −1.4%).
Margins ranged from −11.8% to 7.5% 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: —
Base: —
Bull: —

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (−1.4%).

Revenue growth

Revenue growth, year 1-0.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-1.4%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation19.8%
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).
Capital spending12.9%
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).
Working capital-5.6%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
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.
Beta0.8
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 0.7, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩25T
Net debt (borrowings and leases − cash and deposits): ₩12T
+ Stakes and investments: ₩36B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩1.3T
Shares: 500,000,000
Share price: ₩7,620
Market cap: ₩3.8T

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩21T	₩27T	₩26T	₩25T	₩25T	₩26T	₩26T	₩27T
Growth	−18.4%	24.8%	−3.0%	−0.4%	0.4%	1.3%	2.1%	3.0%
EBIT	−₩2.5T	−₩561B	₩517B	−₩353B	−₩354B	−₩359B	−₩366B	−₩377B
EBIT margin	−11.8%	−2.1%	2.0%	−1.4%	−1.4%	−1.4%	−1.4%	−1.4%
After-tax EBIT	−₩1.8T	−₩406B	₩375B	−₩256B	−₩257B	−₩260B	−₩266B	−₩274B
+ Depreciation	₩4.2T	—	—	₩5T	₩5T	₩5.1T	₩5.2T	₩5.3T
− Capital spending	₩4.2T	₩2.9T	₩2.1T	₩3.3T	₩3.3T	₩3.3T	₩3.4T	₩3.5T
− Working capital	−₩1.4T	₩1.1T	₩842B	₩5.7B	−₩5.6B	−₩18B	−₩30B	−₩44B
Free cash flow	−₩331B	—	—	₩1.5T	₩1.5T	₩1.5T	₩1.6T	₩1.6T
Discount factor	—	—	—	0.951	0.905	0.861	0.819	0.779
Present value	—	—	—	₩1.4T	₩1.4T	₩1.3T	₩1.3T	₩1.3T

Terminal value −₩25T, worth −₩20T today: 150% 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:

	Low	Typical	High
Price / book (book value ₩12,602 a share)Now 0.60×	₩6,8300.54×	₩8,9980.71×	₩11,6630.93×

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%
4.1%	—	—	—	—	—
4.6%	—	—	—	—	—
5.1%	—	—	—	—	—
5.6%	—	—	—	—	—
6.1%	—	—	—	—	—

Now (TTM)

Market cap: ₩3.8T
Enterprise value: ₩16T
P/E: —
P/B: 0.6×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩11,810	₩9,130	₩11,776	₩11,508	₩22,738
Market cap	₩5.9T	₩4.6T	₩5.9T	₩5.8T	₩11T
P/E	26.1×	—	—	—	9.6×
P/B	0.9×	0.7×	0.8×	0.6×	0.9×
P/S	0.2×	0.2×	0.3×	0.2×	0.4×
EV/EBITDA	—	—	11.4×	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
LG Display	—	0.6×	0.2×	—	0.0%
Samsung Electro-Mechanics	96.8×	9.5×	7.8×	—	0.2%
Doosan	39.2×	5.5×	0.7×	—	0.4%
Hanwha Systems	71.2×	2.8×	3.0×	—	0.8%
LG Innotek	13.1×	1.4×	0.4×	—	0.5%
Isupetasys	35.4×	8.3×	5.4×	—	0.0%
Daeduck Electronics	44.8×	7.0×	5.0×	—	0.4%
Similar companies (median)	42.0×	6.3×	4.0×	—	0.4%

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

Also known as: LG Display / LG디스플레이 / 034220 / KRX:034220

Source: KRX statistical information