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KL-Net

039420 · KOSDAQ · ₩039420 · 케이엘넷

₩2,470 ₩0 (0.00%)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

₩6,598

vs the current price (₩2,470)

Enterprise value
₩110B
Equity value
₩151B
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 167% 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 ₩2,470, the model needs an operating margin of 2.0% every year (it uses 18.3%).
  • Margins ranged from 13.7% to 22.0% 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.
  • Today's P/E is 6.7× against a typical 7.6× 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
₩4,996
+102.3%
Base
₩6,598
+167.1%
Bull
₩9,190
+272.1%

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 (18.3%).

Revenue growth

  • -1.8%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.8% 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 (-1.8% a year, annual reports), fading to 3% by year 5.

Business

  • 18.3%

    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.

  • 4.5%

    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).

  • 1.2%

    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).

  • -6.6%

    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.

  • 4.11%

    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.

  • 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 0.13, 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.

  • 5.61%

    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)
₩45B
Net debt (borrowings and leases − cash and deposits)
−₩40B
+ Stakes and investments
₩2.2B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.2B
Shares
22,946,994
Share price
₩2,470
Market cap
₩57B

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₩51B₩50B₩48B₩45B₩44B₩45B₩45B₩47B
Growth1.2%−1.5%−5.2%−1.8%−0.6%0.6%1.8%3.0%
EBIT₩8.3B₩10B₩10B₩8.2B₩8.1B₩8.2B₩8.3B₩8.6B
EBIT margin16.3%19.9%22.0%18.3%18.3%18.3%18.3%18.3%
After-tax EBIT₩6B₩7.2B₩7.6B₩5.9B₩5.9B₩5.9B₩6B₩6.2B
+ Depreciation₩2.3B₩2.3B₩2.2B₩2B₩2B₩2B₩2B₩2.1B
− Capital spending₩195M₩543M₩949M₩536M₩532M₩536M₩545M₩562M
− Working capital−₩18B₩251M−₩305M₩54M₩18M−₩18M−₩53M−₩90M
Free cash flow₩27B₩8.7B₩9.1B₩7.3B₩7.3B₩7.4B₩7.6B₩7.8B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩6.8B₩6.4B₩6B₩5.7B₩5.5B

Terminal value ₩114B, worth ₩80B today: 72% 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 ₩2,912 a share)Now 0.85×₩2,7750.95×₩3,2591.12×₩5,1681.77×
Price / earnings (last 12 months: ₩370 a share)Now 6.67×₩2,4526.62×₩2,8017.56×₩3,79910.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩285 a share)Now 8.67×₩1,8886.62×₩2,1567.56×₩2,92510.3×

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%
6.4%₩6,747₩7,143₩7,629₩8,240₩9,031
6.9%₩6,348₩6,671₩7,061₩7,540₩8,141
7.4%₩6,010₩6,279₩6,598₩6,981₩7,452
7.9%₩5,721₩5,947₩6,212₩6,526₩6,903
8.4%₩5,471₩5,663₩5,886₩6,146₩6,455

Now (TTM)

Market cap
₩57B
Enterprise value
₩15B
P/E
6.7×
P/B
0.8×
P/S
1.2×
EV/EBITDA
1.2×
Dividend yield
4.0%

Over time (at each year end)

20252024202320222021
Price₩2,875₩2,570₩2,655₩2,470₩3,835
Market cap₩66B₩59B₩61B₩57B₩88B
P/E7.1×6.9×8.0×8.3×14.8×
P/B1.0×1.0×1.1×1.1×2.0×
P/S1.4×1.2×1.2×1.1×1.8×
EV/EBITDA2.0×2.1×3.0×5.5×10.1×
Dividend yield3.5%3.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
KL-Net6.7×0.8×1.2×1.2×4.0%
SK Telecom22.4×1.1×1.0×5.0×2.1%
KT8.8×0.6×0.4×—5.3%
LG Uplus10.9×0.6×0.4×2.8×0.0%
Hyundai Futurenet36.6×0.5×1.2×—4.9%
NICE Information & Telecommunication5.7×0.8×0.3×1.8×3.0%
Korea Information & Communication7.9×0.8×0.3×2.0×3.8%
Similar companies (median)9.9×0.7×0.4×2.4×3.4%

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

Also known as: KL-Net / 케이엘넷 / 039420 / KRX:039420

Source: KRX statistical information