KOSPI · 034590 · Utilities · ₩034590

Inchon City Gas인천도시가스

034590 · KOSPI · ₩034590 · 인천도시가스

₩25,500 ₩0 (0.00%)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

₩69,495

vs the current price (₩25,500)

Enterprise value: ₩171B
Equity value: ₩304B
WACC: 7.4%

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 173% 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 ₩25,500, the model needs an operating margin of 0.5% every year (it uses 1.8%).
Today's P/E is 6.5× against a typical 7.4× 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: ₩9,233; −63.8%
Base: ₩69,495; +172.5%
Bull: ₩181,430; +611.5%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (1.8%).

Revenue growth

Revenue growth, year 19.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.8% 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 (9.8% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.8%
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 & amortisation1.8%
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 spending2.2%
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 capital9.1%
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.
Beta0.6
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 0.04, 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): ₩906B
Net debt (borrowings and leases − cash and deposits): −₩126B
+ Stakes and investments: ₩6.9B; Associates, long-term financial assets and deposits (book value)
Shares: 4,374,754
Share price: ₩25,500
Market cap: ₩112B

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	₩781B	₩944B	₩963B	₩995B	₩1.1T	₩1.1T	₩1.2T	₩1.2T
Growth	7.3%	20.8%	2.1%	9.8%	8.1%	6.4%	4.7%	3.0%
EBIT	₩17B	₩19B	₩19B	₩18B	₩19B	₩21B	₩22B	₩22B
EBIT margin	2.1%	2.1%	2.0%	1.8%	1.8%	1.8%	1.8%	1.8%
After-tax EBIT	₩12B	₩14B	₩14B	₩13B	₩14B	₩15B	₩16B	₩16B
+ Depreciation	₩16B	₩16B	₩16B	₩18B	₩19B	₩21B	₩22B	₩22B
− Capital spending	₩24B	₩17B	₩16B	₩22B	₩24B	₩25B	₩26B	₩27B
− Working capital	₩15B	−₩1.9B	−₩6.6B	₩8.1B	₩7.3B	₩6.3B	₩4.9B	₩3.3B
Free cash flow	−₩11B	₩15B	₩21B	₩923M	₩2.4B	₩4.1B	₩5.9B	₩7.9B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	₩860M	₩2.1B	₩3.3B	₩4.5B	₩5.5B

Terminal value ₩221B, worth ₩155B today: 90% 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 ₩55,590 a share)Now 0.46×	₩26,7080.48×	₩29,4280.53×	₩34,3720.62×
Price / earnings (last 12 months: ₩3,931 a share)Now 6.49×	₩20,8765.31×	₩28,9047.35×	₩63,57416.2×

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%
6.4%	₩74,492	₩76,869	₩79,768	₩83,388	₩88,052
6.9%	₩70,157	₩71,953	₩74,098	₩76,712	₩79,975
7.4%	₩66,513	₩67,885	₩69,495	₩71,416	₩73,755
7.9%	₩63,411	₩64,466	₩65,686	₩67,116	₩68,821
8.4%	₩60,739	₩61,554	₩62,484	₩63,557	₩64,813

Now (TTM)

Market cap: ₩112B
Enterprise value: −₩27B
P/E: 6.5×
P/B: 0.5×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 5.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩25,450	₩24,600	₩25,550	₩27,900	₩27,150
Market cap	₩111B	₩108B	₩112B	₩122B	₩119B
P/E	5.8×	5.6×	6.4×	10.2×	28.3×
P/B	0.5×	0.5×	0.5×	0.6×	0.6×
P/S	0.1×	0.1×	0.1×	0.2×	0.2×
EV/EBITDA	2.1×	2.4×	3.2×	4.6×	3.7×
Dividend yield	5.4%	5.1%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Inchon City Gas	6.5×	0.5×	0.1×	—	5.4%
Korea Electric Power	2.3×	0.4×	0.2×	5.7×	5.4%
Korea Gas	6.0×	0.3×	0.1×	8.6×	3.1%
Korea District Heating	2.3×	0.3×	0.2×	4.8×	8.6%
SGC Energy	—	0.7×	0.2×	—	3.9%
Samchully	3.2×	0.2×	0.1×	—	2.5%
Seoul City Gas	11.4×	0.2×	0.1×	—	0.0%
Similar companies (median)	3.2×	0.3×	0.2×	5.7×	3.5%

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

Also known as: Inchon City Gas / 인천도시가스 / 034590 / KRX:034590

Source: KRX statistical information