KOSDAQ · 036630 · Construction · ₩036630

Sejong Telecom세종텔레콤

036630 · KOSDAQ · ₩036630 · 세종텔레콤

₩6,980▼ ₩90 (1.27%)End-of-day · Oct 27, 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: −₩186B
Equity value: −₩234B
WACC: 6.0%

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 ₩6,980, the model needs an operating margin of 5.0% every year (it uses −2.3%).
In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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

Margin path

Every year uses the cycle-average margin (−2.3%).

Revenue growth

Revenue growth, year 1-4.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-2.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-0.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.3% 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 (-4.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-2.3%
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 & amortisation10.2%
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 spending12.7%
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 capital0.4%
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 rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
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 -0.21, 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)5.53%
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): ₩278B
Net debt (borrowings and leases − cash and deposits): ₩69B
+ Stakes and investments: ₩23B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩2.3B
Shares: 14,000,000
Share price: ₩6,980
Market cap: ₩98B

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	₩339B	₩371B	₩284B	₩266B	₩259B	₩257B	₩261B	₩268B
Growth	4.6%	9.5%	−23.5%	−4.3%	−2.5%	−0.7%	1.2%	3.0%
EBIT	−₩3.1B	−₩12B	−₩11B	−₩6.1B	−₩6B	−₩5.9B	−₩6B	−₩6.2B
EBIT margin	−0.9%	−3.3%	−3.8%	−2.3%	−2.3%	−2.3%	−2.3%	−2.3%
After-tax EBIT	−₩2.3B	−₩8.8B	−₩7.8B	−₩4.4B	−₩4.3B	−₩4.3B	−₩4.3B	−₩4.5B
+ Depreciation	—	—	—	₩27B	₩26B	₩26B	₩27B	₩27B
− Capital spending	₩25B	₩62B	₩40B	₩34B	₩33B	₩33B	₩33B	₩34B
− Working capital	−₩129B	−₩915M	−₩17B	−₩48M	−₩27M	−₩7.3M	₩12M	₩31M
Free cash flow	—	—	—	−₩11B	−₩11B	−₩11B	−₩11B	−₩11B
Discount factor	—	—	—	0.944	0.891	0.841	0.793	0.749
Present value	—	—	—	−₩10B	−₩9.6B	−₩9B	−₩8.6B	−₩8.4B

Terminal value −₩186B, worth −₩140B 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:

	Low	Typical	High
Price / book (book value ₩11,777 a share)Now 0.59×	₩1,4120.12×	₩1,8950.16×	₩7,0120.60×

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%
5.0%	—	—	—	—	—
5.5%	—	—	—	—	—
6.0%	—	—	—	—	—
6.5%	—	—	—	—	—
7.0%	—	—	—	—	—

Now (TTM)

Market cap: ₩98B
Enterprise value: ₩157B
P/E: —
P/B: 0.6×
P/S: 0.4×
EV/EBITDA: —
Dividend yield: 4.3%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,910	₩2,039	₩3,869	₩3,325	₩5,892
Market cap	₩139B	₩29B	₩54B	₩47B	₩82B
P/E	17.1×	—	1.2×	—	2.7×
P/B	0.8×	0.1×	0.2×	0.2×	0.2×
P/S	0.5×	0.1×	0.2×	0.1×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	3.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Sejong Telecom	—	0.6×	0.4×	—	4.3%
Hyundai Engineering & Construction	22.8×	1.1×	0.4×	—	0.9%
Daewoo Engineering & Construction	—	1.6×	0.8×	—	0.0%
GS Engineering & Construction	18.8×	0.5×	0.2×	—	1.7%
DL E&C	3.5×	0.4×	0.3×	—	1.6%
KEPCO Plant Service & Engineering	14.0×	1.4×	1.1×	7.9×	0.0%
Ipark Hyundai Development	8.6×	0.5×	0.4×	—	2.9%
Similar companies (median)	14.0×	0.8×	0.4×	7.9×	1.2%

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

Also known as: Sejong Telecom / 세종텔레콤 / 036630 / KRX:036630

Source: KRX statistical information