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The Korea Economic Broadcasting

039340 · KOSDAQ · ₩039340 · 한국경제TV

₩4,710▼ ₩135 (2.79%)End-of-day · Oct 28, 2026 · End-of-day prices.
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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

₩2,938

vs the current price (₩4,710)

Enterprise value
₩40B
Equity value
₩65B
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 38% 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 ₩4,710, the model needs an operating margin of 8.0% every year (it uses 4.5%).
  • Or revenue growth +55.2 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −3.1% to 22.2% 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.
  • 85% 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.
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
  • Today's P/E is 18.6× against a typical 12.0× 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
₩1,934
−58.9%
Base
₩2,938
−37.6%
Bull
₩4,827
+2.5%

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

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (4.5%).

Revenue growth

  • -5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.

  • -3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.

  • -1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.

  • 1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.

Business

  • 4.5%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 1.2%

    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).

  • 1.5%

    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).

  • 40%

    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

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.08%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 0.6

    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 0.09, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.58%

    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)
₩94B
Net debt (borrowings and leases − cash and deposits)
−₩24B
Shares
22,000,000
Share price
₩4,710
Market cap
₩104B

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.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩82B₩80B₩76B₩89B₩86B₩86B₩86B₩89B
Growth−7.1%−3.4%−4.5%−5.0%−3.0%−1.0%1.0%3.0%
EBIT₩4.7B₩1.1B−₩2.4B₩4B₩3.9B₩3.8B₩3.9B₩4B
EBIT margin5.7%1.4%−3.1%4.5%4.5%4.5%4.5%4.5%
After-tax EBIT₩3.4B₩819M−₩1.7B₩2.9B₩2.8B₩2.8B₩2.8B₩2.9B
+ Depreciation———₩1.1B₩1B₩1B₩1B₩1.1B
− Capital spending₩562M₩2B₩971M₩1.3B₩1.3B₩1.3B₩1.3B₩1.3B
− Working capital−₩8.3B−₩47B−₩9B−₩1.9B−₩1.1B−₩346M₩342M₩1B
Free cash flow———₩4.5B₩3.6B₩2.9B₩2.2B₩1.6B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩4.2B₩3.1B₩2.3B₩1.7B₩1.1B

Terminal value ₩40B, worth ₩28B today: 69% 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:

LowTypicalHigh
Price / book (book value ₩6,794 a share)Now 0.69×₩4,7880.70×₩5,2340.77×₩6,1750.91×
Price / earnings (last 12 months: ₩253 a share)Now 18.6×₩1,6626.57×₩3,03112.0×₩6,69426.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩878 a share)Now 5.37×₩5,7626.57×₩10,50912.0×₩23,20726.4×

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%₩3,221₩3,262₩3,312₩3,372₩3,449
6.9%₩3,052₩3,077₩3,106₩3,140₩3,181
7.4%₩2,909₩2,923₩2,938₩2,954₩2,973
7.9%₩2,788₩2,793₩2,798₩2,803₩2,808
8.4%₩2,682₩2,682₩2,680₩2,677₩2,673

Now (TTM)

Market cap
₩104B
Enterprise value
₩70B
P/E
18.6×
P/B
0.7×
P/S
1.1×
EV/EBITDA
—
Dividend yield
3.2%

Over time (at each year end)

20252024202320222021
Price₩5,560₩6,300₩5,910₩5,650₩7,390
Market cap₩122B₩139B₩130B₩124B₩163B
P/E43.8×16.4×12.1×9.0×6.4×
P/B0.8×0.9×0.7×0.7×1.0×
P/S1.6×1.7×1.6×1.4×1.4×
EV/EBITDA—————
Dividend yield2.7%2.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
The Korea Economic Broadcasting18.6×0.7×1.1×—3.2%
CJ ENM—0.3×0.2×—0.0%
Seoul Broadcasting System110.8×0.2×0.2×—2.9%
KT Skylife78.2×0.3×0.2×—9.0%
Mega Study5.3×0.5×1.2×—10.2%
LG HelloVision—0.2×0.1×3.1×0.0%
KX Innovation5.8×0.3×0.3×1.3×0.0%
Similar companies (median)42.0×0.3×0.2×2.2×1.5%

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

Also known as: The Korea Economic Broadcasting / 한국경제TV / 039340 / KRX:039340

Source: KRX statistical information