KOSDAQ · 037070 · Electrical equipment · ₩037070

Paseco파세코

037070 · KOSDAQ · ₩037070 · 파세코

₩6,130▼ ₩100 (1.61%)End-of-day · Oct 30, 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

₩2,442

vs the current price (₩6,130)

Enterprise value: ₩51B
Equity value: ₩49B
WACC: 7.3%

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 60% 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 ₩6,130, the model needs an operating margin of 6.5% every year (it uses 2.7%).
Or revenue growth +46.4 points a year higher than assumed in each of the 5 years.
Margins ranged from −10.7% to 10.1% 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.
33% 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 39.8× against a typical 31.5× 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: ₩679; −88.9%
Base: ₩2,442; −60.2%
Bull: ₩5,745; −6.3%

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 (2.7%).

Revenue growth

Revenue growth, year 1-5.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-3.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.7% 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 (-5.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.7%
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 & amortisation3%
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 spending1.2%
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 capital19.8%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
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 -0.19, 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)5.51%
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): ₩161B
Net debt (borrowings and leases − cash and deposits): ₩1.7B
+ Stakes and investments: ₩4M; Associates, long-term financial assets and deposits (book value)
Shares: 20,000,000
Share price: ₩6,130
Market cap: ₩123B

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	₩148B	₩158B	₩168B	₩152B	₩146B	₩144B	₩145B	₩150B
Growth	−26.4%	6.9%	6.4%	−5.7%	−3.6%	−1.4%	0.8%	3.0%
EBIT	−₩1.2B	−₩17B	₩3.3B	₩4.1B	₩3.9B	₩3.9B	₩3.9B	₩4B
EBIT margin	−0.8%	−10.7%	2.0%	2.7%	2.7%	2.7%	2.7%	2.7%
After-tax EBIT	−₩897M	−₩12B	₩2.4B	₩3B	₩2.9B	₩2.8B	₩2.8B	₩2.9B
+ Depreciation	₩4.4B	—	—	₩4.6B	₩4.4B	₩4.3B	₩4.4B	₩4.5B
− Capital spending	₩1.4B	₩1.2B	₩3.4B	₩1.8B	₩1.8B	₩1.7B	₩1.7B	₩1.8B
− Working capital	−₩2.3B	−₩16B	−₩3.6B	−₩1.8B	−₩1.1B	−₩405M	₩228M	₩864M
Free cash flow	₩4.4B	—	—	₩7.5B	₩6.6B	₩5.8B	₩5.2B	₩4.8B
Discount factor	—	—	—	0.932	0.869	0.810	0.755	0.704
Present value	—	—	—	₩7B	₩5.7B	₩4.7B	₩4B	₩3.4B

Terminal value ₩37B, worth ₩26B today: 51% 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 ₩4,080 a share)Now 1.50×	₩5,2871.30×	₩7,8471.92×	₩14,0683.45×
Price / earnings (last 12 months: ₩154 a share)Now 39.8×	₩2,90918.9×	₩4,84531.5×	₩6,67043.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩484 a share)Now 12.7×	₩9,14118.9×	₩15,22731.5×	₩20,96143.3×

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%
6.3%	₩2,732	₩2,786	₩2,852	₩2,934	₩3,039
6.8%	₩2,549	₩2,585	₩2,627	₩2,677	₩2,740
7.3%	₩2,394	₩2,417	₩2,442	₩2,472	₩2,508
7.8%	₩2,261	₩2,274	₩2,288	₩2,304	₩2,323
8.3%	₩2,145	₩2,151	₩2,158	₩2,164	₩2,171

Now (TTM)

Market cap: ₩123B
Enterprise value: ₩124B
P/E: 39.8×
P/B: 1.5×
P/S: 0.8×
EV/EBITDA: —
Dividend yield: 2.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩7,930	₩4,765	₩10,030	₩13,000	₩15,642
Market cap	₩159B	₩95B	₩201B	₩260B	₩313B
P/E	42.9×	—	257.7×	28.3×	16.4×
P/B	1.9×	1.1×	1.9×	2.4×	3.1×
P/S	0.9×	0.6×	1.4×	1.3×	1.4×
EV/EBITDA	—	—	61.5×	12.7×	11.2×
Dividend yield	1.9%	2.1%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Paseco	39.8×	1.5×	0.8×	—	2.4%
LS Electric	57.7×	10.5×	3.9×	35.7×	0.0%
Hyosung Heavy Industries	28.8×	6.5×	2.6×	—	0.4%
HD Hyundai Electric	18.0×	6.8×	3.5×	—	0.0%
Gaon Cable	105.6×	12.8×	2.3×	55.0×	0.0%
Sanil Electric	24.9×	6.8×	7.6×	—	0.9%
Taihan Cable & Solution	—	2.1×	0.9×	—	0.0%
Similar companies (median)	28.8×	6.8×	3.1×	45.4×	0.0%

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

Also known as: Paseco / 파세코 / 037070 / KRX:037070

Source: KRX statistical information