KOSPI · 037710 · Retail & Trade · ₩037710

GwangjuShinsegae광주신세계

037710 · KOSPI · ₩037710 · 광주신세계

₩34,400▲ ₩1,800 (5.52%)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

₩22,965

vs the current price (₩34,400)

Enterprise value: ₩391B
Equity value: ₩175B
WACC: 5.9%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Bear / Base / Bull

Bear: —
Base: ₩22,965; −33.2%
Bull: ₩101,437; +194.9%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (31.1%).

Revenue growth

Revenue growth, year 1-0.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% 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 (-0.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin31.1%
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 & amortisation14.3%
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 spending93.6%
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 capital-10%
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.
Beta0.6
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 -0.05, 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): ₩191B
Net debt (borrowings and leases − cash and deposits): ₩217B
+ Stakes and investments: ₩737M; Associates, long-term financial assets and deposits (book value)
Shares: 7,627,172
Share price: ₩34,400
Market cap: ₩262B

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	₩180B	₩184B	₩184B	₩191B	₩192B	₩195B	₩199B	₩205B
Growth	−2.9%	2.2%	0.3%	−0.1%	0.7%	1.4%	2.2%	3.0%
EBIT	₩55B	₩52B	₩52B	₩59B	₩60B	₩61B	₩62B	₩64B
EBIT margin	30.6%	28.5%	28.5%	31.1%	31.1%	31.1%	31.1%	31.1%
After-tax EBIT	₩40B	₩38B	₩38B	₩43B	₩43B	₩44B	₩45B	₩46B
+ Depreciation	₩26B	₩27B	₩25B	₩27B	₩28B	₩28B	₩29B	₩29B
− Capital spending	₩31B	₩456B	₩28B	₩179B	₩180B	₩183B	₩187B	₩192B
− Working capital	−₩21B	−₩65B	₩40B	₩19M	−₩134M	−₩269M	−₩429M	−₩598M
Free cash flow	₩56B	−₩326B	−₩5.5B	−₩108B	−₩109B	−₩110B	−₩113B	−₩116B
Discount factor	—	—	—	0.944	0.892	0.842	0.795	0.751
Present value	—	—	—	−₩102B	−₩97B	−₩93B	−₩90B	−₩87B

Terminal value ₩1.1T, worth ₩861B today: 220% 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 ₩113,781 a share)Now 0.30×	₩30,8480.27×	₩33,9940.30×	₩42,0590.37×
Price / earnings (last 12 months: ₩6,170 a share)Now 5.57×	₩26,2144.25×	₩30,7734.99×	₩43,3487.03×

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%
4.9%	₩25,004	₩43,151	₩67,568	₩102,178	₩155,045
5.4%	₩10,189	₩23,974	₩41,821	₩65,833	₩99,869
5.9%	—	₩9,407	₩22,965	₩40,518	₩64,134
6.4%	—	—	₩8,642	₩21,977	₩39,242
6.9%	—	—	—	₩7,893	₩21,010

Now (TTM)

Market cap: ₩262B
Enterprise value: ₩479B
P/E: 5.6×
P/B: 0.3×
P/S: 1.4×
EV/EBITDA: 5.9×
Dividend yield: 7.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩31,650	₩28,850	₩30,050	₩32,000	₩36,201
Market cap	₩241B	₩220B	₩229B	₩244B	₩276B
P/E	5.4×	4.8×	4.7×	4.3×	5.3×
P/B	0.3×	0.3×	0.3×	0.3×	0.4×
P/S	1.3×	1.2×	1.3×	1.3×	1.6×
EV/EBITDA	5.6×	4.8×	—	0.6×	1.3×
Dividend yield	7.6%	7.6%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
GwangjuShinsegae	5.6×	0.3×	1.4×	5.9×	7.0%
Samsung C&T	17.5×	0.5×	1.1×	—	0.9%
POSCO International	10.6×	1.3×	0.3×	—	3.7%
ISC	41.4×	5.5×	11.5×	—	0.6%
Youngone	5.1×	0.7×	0.7×	—	3.1%
Dong SUH Companies	19.0×	1.6×	5.1×	—	4.1%
Shinsegae	13.7×	0.4×	0.3×	—	2.1%
Similar companies (median)	15.6×	1.0×	0.9×	—	2.6%

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

Also known as: GwangjuShinsegae / 광주신세계 / 037710 / KRX:037710

Source: KRX statistical information