KOSDAQ · 037030 · Electrical equipment · ₩037030

Powernet Technologies파워넷

037030 · KOSDAQ · ₩037030 · 파워넷

₩2,995▲ ₩20 (0.67%)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

₩5,677

vs the current price (₩2,995)

Enterprise value: ₩422B
Equity value: ₩145B
WACC: 5.8%

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 90% 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 ₩2,995, the model needs an operating margin of 3.4% every year (it uses 3.9%).
Or revenue growth −5.2 points a year higher than assumed in each of the 5 years.
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.
Today's P/E is 6.8× against a typical 8.4× 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: —
Base: ₩5,677; +89.5%
Bull: ₩32,922; +999.2%

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 (3.9%).

Revenue growth

Revenue growth, year 125%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (28.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 219.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (28.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 314%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (28.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 48.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (28.4% 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 (28.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.9%
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.
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 & amortisation0.8%
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).
Capital spending1%
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 capital18.2%
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.
Beta0.85
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 0.78, 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): ₩435B
Net debt (borrowings and leases − cash and deposits): ₩137B
+ Stakes and investments: ₩55B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩194B
Shares: 25,512,992
Share price: ₩2,995
Market cap: ₩76B

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	₩186B	₩323B	₩447B	₩544B	₩650B	₩741B	₩804B	₩828B
Growth	−11.8%	73.3%	38.5%	25.0%	19.5%	14.0%	8.5%	3.0%
EBIT	₩7.1B	₩13B	₩25B	₩21B	₩25B	₩29B	₩31B	₩32B
EBIT margin	3.8%	4.1%	5.5%	3.9%	3.9%	3.9%	3.9%	3.9%
After-tax EBIT	₩5.2B	₩9.6B	₩18B	₩15B	₩18B	₩21B	₩23B	₩23B
+ Depreciation	—	—	—	₩4.4B	₩5.2B	₩5.9B	₩6.4B	₩6.6B
− Capital spending	₩3.4B	₩1.9B	₩2B	₩5.4B	₩6.5B	₩7.4B	₩8B	₩8.3B
− Working capital	−₩21B	₩57B	−₩10B	₩20B	₩19B	₩17B	₩11B	₩4.4B
Free cash flow	—	—	—	−₩5.5B	−₩2.2B	₩2.9B	₩9.7B	₩17B
Discount factor	—	—	—	0.946	0.894	0.846	0.800	0.756
Present value	—	—	—	−₩5.2B	−₩2B	₩2.5B	₩7.7B	₩13B

Terminal value ₩537B, worth ₩406B today: 96% 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 ₩6,020 a share)Now 0.50×	₩3,0320.50×	₩4,9330.82×	₩9,0481.50×
Price / earnings (last 12 months: ₩441 a share)Now 6.79×	₩1,3553.07×	₩3,6978.38×	₩23,40653.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩798 a share)Now 3.75×	₩2,4523.07×	₩6,6888.38×	₩42,34453.0×

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%
4.8%	₩7,584	₩9,686	₩12,544	₩16,660	₩23,111
5.3%	₩5,107	₩6,614	₩8,579	₩11,248	₩15,092
5.8%	₩3,157	₩4,271	₩5,677	₩7,507	₩9,994
6.3%	₩1,584	₩2,427	₩3,463	₩4,769	₩6,470
6.8%	₩288	₩938	₩1,719	₩2,680	₩3,890

Now (TTM)

Market cap: ₩76B
Enterprise value: ₩209B
P/E: 6.8×
P/B: 0.5×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,685	₩2,280	₩3,075	₩2,865	₩5,560
Market cap	₩69B	₩58B	₩78B	₩73B	₩142B
P/E	4.5×	2.8×	—	44.1×	59.6×
P/B	0.5×	0.5×	0.8×	0.8×	1.7×
P/S	0.2×	0.2×	0.4×	0.3×	0.7×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Powernet Technologies	6.8×	0.5×	0.2×	—	0.0%
LS Electric	61.0×	11.1×	4.2×	37.7×	0.0%
Hyosung Heavy Industries	30.5×	6.9×	2.8×	—	0.4%
HD Hyundai Electric	19.1×	7.2×	3.7×	—	0.0%
Gaon Cable	106.8×	12.9×	2.4×	55.6×	0.0%
Sanil Electric	27.2×	7.4×	8.3×	—	0.8%
Taihan Cable & Solution	—	2.2×	1.0×	—	0.0%
Similar companies (median)	30.5×	7.3×	3.3×	46.7×	0.0%

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

Also known as: Powernet Technologies / 파워넷 / 037030 / KRX:037030

Source: KRX statistical information