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kt alpha

036030 · KOSDAQ · ₩036030 · 케이티알파

₩4,760▼ ₩15 (0.31%)End-of-day · Oct 29, 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

₩8,198

vs the current price (₩4,760)

Enterprise value
₩255B
Equity value
₩402B
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 72% 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 ₩4,760, the model needs an operating margin of 2.2% every year (it uses 5.9%).
  • Margins ranged from 0.9% to 11.2% 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.
  • Today's P/E is 5.3× against a typical 11.7× 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
₩5,582
+17.3%
Base
₩8,198
+72.2%
Bull
₩12,796
+168.8%

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 (5.9%).

Revenue growth

  • -5.5%

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

    Default: the last 3 years' revenue growth (-5.5% a year, annual reports), fading to 3% by year 5.

  • -3.4%

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

    Default: the last 3 years' revenue growth (-5.5% a year, annual reports), fading to 3% by year 5.

  • -1.3%

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

    Default: the last 3 years' revenue growth (-5.5% a year, annual reports), fading to 3% by year 5.

  • 0.9%

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

    Default: the last 3 years' revenue growth (-5.5% 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 (-5.5% a year, annual reports), fading to 3% by year 5.

Business

  • 5.9%

    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.

  • 0.8%

    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).

  • 1%

    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).

  • 12.9%

    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.

  • 4.08%

    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.

  • 0.6

    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 0.11, 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.

  • 5.58%

    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)
₩392B
Net debt (borrowings and leases − cash and deposits)
−₩147B
Shares
49,019,141
Share price
₩4,760
Market cap
₩233B

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₩430B₩388B₩396B₩370B₩358B₩353B₩356B₩367B
Growth−8.3%−9.8%2.0%−5.5%−3.4%−1.3%0.9%3.0%
EBIT₩12B₩25B₩44B₩22B₩21B₩21B₩21B₩22B
EBIT margin2.9%6.3%11.2%5.9%5.9%5.9%5.9%5.9%
After-tax EBIT₩8.9B₩18B₩32B₩16B₩15B₩15B₩15B₩16B
+ Depreciation———₩3B₩2.9B₩2.8B₩2.8B₩2.9B
− Capital spending₩4.8B₩2.5B₩4.9B₩3.7B₩3.6B₩3.5B₩3.6B₩3.7B
− Working capital−₩510M₩4.4B₩39B−₩2.8B−₩1.6B−₩600M₩410M₩1.4B
Free cash flow———₩18B₩16B₩15B₩14B₩14B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩17B₩14B₩12B₩11B₩9.5B

Terminal value ₩274B, worth ₩192B today: 75% 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 ₩6,355 a share)Now 0.75×₩4,6250.73×₩6,5281.03×₩9,3531.47×
Price / earnings (last 12 months: ₩891 a share)Now 5.34×₩4,7605.34×₩10,45611.7×₩27,54230.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩155 a share)Now 30.8×₩8265.34×₩1,81511.7×₩4,78030.9×

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%₩8,512₩8,891₩9,355₩9,939₩10,694
6.9%₩8,049₩8,353₩8,718₩9,165₩9,727
7.4%₩7,659₩7,906₩8,198₩8,549₩8,980
7.9%₩7,326₩7,530₩7,767₩8,048₩8,386
8.4%₩7,038₩7,208₩7,403₩7,632₩7,902

Now (TTM)

Market cap
₩233B
Enterprise value
₩84B
P/E
5.3×
P/B
0.7×
P/S
0.6×
EV/EBITDA
—
Dividend yield
5.9%

Over time (at each year end)

20252024202320222021
Price₩5,440₩3,520₩5,990₩5,430₩7,260
Market cap₩267B₩173B₩294B₩266B₩356B
P/E6.1×8.8×18.0×21.9×—
P/B0.9×0.7×1.2×1.2×1.6×
P/S0.7×0.4×0.7×0.6×0.8×
EV/EBITDA—————
Dividend yield5.1%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
kt alpha5.3×0.7×0.6×—5.9%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.5×1.2×0.3×—3.8%
ISC45.4×6.1×12.7×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies19.2×1.6×5.1×—4.1%
Shinsegae13.9×0.4×0.3×—2.1%
Similar companies (median)16.3×1.0×1.0×—2.6%

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

Also known as: kt alpha / 케이티알파 / 036030 / KRX:036030

Source: KRX statistical information