KOSDAQ · 038680 · IT services · ₩038680

S Net Systems에스넷

038680 · KOSDAQ · ₩038680 · 에스넷

₩3,745▲ ₩190 (5.34%)End-of-day · Oct 28, 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

₩9,121

vs the current price (₩3,745)

Enterprise value: ₩144B
Equity value: ₩182B
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 144% 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 ₩3,745, the model needs an operating margin of 0.6% every year (it uses 1.9%).
Today's P/E is 8.6× against a typical 8.6× 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: ₩1,146; −69.4%
Base: ₩9,121; +143.6%
Bull: ₩23,647; +531.4%

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 (1.9%).

Revenue growth

Revenue growth, year 15.5%
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.
Revenue growth, year 24.9%
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.
Revenue growth, year 34.3%
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.
Revenue growth, year 43.6%
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.
Revenue growth, year 53%
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

EBIT margin1.9%
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 & amortisation0.1%
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 spending0.2%
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 capital3.9%
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

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 0.14, 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): ₩550B
Net debt (borrowings and leases − cash and deposits): −₩15B
+ Stakes and investments: ₩34B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩11B
Shares: 19,912,642
Share price: ₩3,745
Market cap: ₩75B

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	₩477B	₩450B	₩457B	₩580B	₩609B	₩635B	₩658B	₩677B
Growth	22.5%	−5.7%	1.7%	5.5%	4.9%	4.3%	3.6%	3.0%
EBIT	₩14B	₩11B	₩11B	₩11B	₩12B	₩12B	₩12B	₩13B
EBIT margin	3.0%	2.4%	2.3%	1.9%	1.9%	1.9%	1.9%	1.9%
After-tax EBIT	₩10B	₩7.7B	₩7.7B	₩8B	₩8.4B	₩8.7B	₩9.1B	₩9.3B
+ Depreciation	—	—	—	₩580M	₩609M	₩635M	₩658M	₩677M
− Capital spending	₩873M	₩796M	₩583M	₩1.2B	₩1.2B	₩1.3B	₩1.3B	₩1.4B
− Working capital	−₩10B	−₩18B	−₩11B	₩1.2B	₩1.1B	₩1B	₩891M	₩769M
Free cash flow	—	—	—	₩6.2B	₩6.7B	₩7.1B	₩7.5B	₩7.9B
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	₩5.8B	₩5.8B	₩5.7B	₩5.6B	₩5.5B

Terminal value ₩165B, worth ₩115B today: 80% 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 ₩5,439 a share)Now 0.69×	₩3,8360.71×	₩6,3391.17×	₩11,1972.06×
Price / earnings (last 12 months: ₩438 a share)Now 8.56×	₩2,1454.90×	₩3,7458.56×	₩5,60512.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩469 a share)Now 7.99×	₩2,2974.90×	₩4,0118.56×	₩6,00312.8×

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%	₩9,561	₩10,125	₩10,815	₩11,680	₩12,799
6.9%	₩8,886	₩9,338	₩9,881	₩10,547	₩11,382
7.4%	₩8,316	₩8,685	₩9,121	₩9,645	₩10,287
7.9%	₩7,830	₩8,135	₩8,490	₩8,911	₩9,416
8.4%	₩7,410	₩7,664	₩7,958	₩8,301	₩8,706

Now (TTM)

Market cap: ₩75B
Enterprise value: ₩55B
P/E: 8.6×
P/B: 0.7×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 2.7%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,400	₩3,950	₩4,835	₩4,715	₩8,730
Market cap	₩68B	₩79B	₩96B	₩94B	₩174B
P/E	14.8×	13.2×	4.8×	—	—
P/B	0.6×	0.8×	1.0×	1.4×	2.8×
P/S	0.1×	0.2×	0.2×	0.2×	0.5×
EV/EBITDA	—	—	—	—	—
Dividend yield	2.9%	1.3%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
S Net Systems	8.6×	0.7×	0.1×	—	2.7%
Samsung SDS	26.5×	1.7×	1.2×	—	1.4%
LG CNS	15.9×	2.5×	1.2×	—	2.3%
DB	7.5×	1.0×	0.7×	16.9×	0.0%
Itcenglobal	7.1×	3.1×	0.0×	—	0.0%
Lotte Innovate	15.6×	0.6×	0.2×	—	3.9%
Shinsegae Information & Communication	6.4×	0.4×	0.3×	0.8×	0.0%
Similar companies (median)	11.6×	1.3×	0.5×	8.8×	0.7%

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

Also known as: S Net Systems / 에스넷 / 038680 / KRX:038680

Source: KRX statistical information