KOSDAQ · 036010 · Electronic components · ₩036010

Abco Electronics아비코전자

036010 · KOSDAQ · ₩036010 · 아비코전자

₩6,590▲ ₩280 (4.44%)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

₩4,051

vs the current price (₩6,590)

Enterprise value: ₩25B
Equity value: ₩54B
WACC: 9.7%

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 39% 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 ₩6,590, the model needs an operating margin of 5.8% every year (it uses 2.8%).
Margins ranged from −4.0% to 6.9% 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.
38% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 7.1× against a typical 17.8× 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: ₩2,601; −60.5%
Base: ₩4,051; −38.5%
Bull: ₩6,507; −1.3%

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 (2.8%).

Revenue growth

Revenue growth, year 1-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.7% 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 (-6.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.8%
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 & amortisation2%
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).
Capital spending2.5%
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 capital22.5%
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 rate4.11%
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.
Beta1.02
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 1.03, 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)5.61%
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): ₩141B
Net debt (borrowings and leases − cash and deposits): −₩26B
+ Stakes and investments: ₩2.9B; Associates, long-term financial assets and deposits (book value)
Shares: 13,292,934
Share price: ₩6,590
Market cap: ₩88B

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	₩125B	₩121B	₩134B	₩132B	₩126B	₩124B	₩125B	₩128B
Growth	−24.1%	−3.3%	10.7%	−6.7%	−4.3%	−1.8%	0.6%	3.0%
EBIT	−₩4.7B	−₩4.9B	₩8.3B	₩3.7B	₩3.5B	₩3.5B	₩3.5B	₩3.6B
EBIT margin	−3.8%	−4.0%	6.2%	2.8%	2.8%	2.8%	2.8%	2.8%
After-tax EBIT	−₩3.4B	−₩3.5B	₩6B	₩2.7B	₩2.6B	₩2.5B	₩2.5B	₩2.6B
+ Depreciation	—	—	—	₩2.6B	₩2.5B	₩2.5B	₩2.5B	₩2.6B
− Capital spending	₩1.9B	₩4.7B	₩2.7B	₩3.3B	₩3.2B	₩3.1B	₩3.1B	₩3.2B
− Working capital	−₩5.2B	−₩5.7B	₩11B	−₩2.1B	−₩1.3B	−₩511M	₩167M	₩842M
Free cash flow	—	—	—	₩4.2B	₩3.2B	₩2.4B	₩1.7B	₩1.1B
Discount factor	—	—	—	0.911	0.831	0.757	0.690	0.629
Present value	—	—	—	₩3.8B	₩2.7B	₩1.8B	₩1.2B	₩707M

Terminal value ₩23B, worth ₩15B today: 59% 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 ₩9,365 a share)Now 0.70×	₩5,8630.63×	₩11,1091.19×	₩15,4061.64×
Price / earnings (last 12 months: ₩924 a share)Now 7.14×	₩7,0507.63×	₩16,39817.8×	₩37,86041.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,348 a share)Now 4.89×	₩10,2877.63×	₩23,92817.8×	₩55,24541.0×

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%
8.7%	₩4,295	₩4,294	₩4,291	₩4,288	₩4,282
9.2%	₩4,177	₩4,171	₩4,163	₩4,153	₩4,140
9.7%	₩4,072	₩4,063	₩4,051	₩4,036	₩4,018
10.2%	₩3,979	₩3,967	₩3,952	₩3,934	₩3,914
10.7%	₩3,896	₩3,881	₩3,865	₩3,845	₩3,822

Now (TTM)

Market cap: ₩88B
Enterprise value: ₩62B
P/E: 7.1×
P/B: 0.7×
P/S: 0.6×
EV/EBITDA: —
Dividend yield: 0.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩7,090	₩4,490	₩14,790	₩10,100	₩12,300
Market cap	₩94B	₩60B	₩197B	₩134B	₩164B
P/E	9.9×	—	—	14.3×	44.1×
P/B	0.8×	0.6×	1.7×	1.1×	1.6×
P/S	0.7×	0.5×	1.6×	0.8×	1.1×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.4%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Abco Electronics	7.1×	0.7×	0.6×	—	0.5%
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: Abco Electronics / 아비코전자 / 036010 / KRX:036010

Source: KRX statistical information