Ask Warren

Dasan Networks

039560 · KOSDAQ · ₩039560 · 다산네트웍스

₩2,405▲ ₩40 (1.69%)End-of-day · Oct 27, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

With these assumptions the model gives no positive value.

Enterprise value
−₩211B
Equity value
−₩185B
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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩2,405, the model needs an operating margin of 2.8% every year (it uses 0.6%).
  • Margins ranged from −6.7% to 7.1% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
—
Base
—
Bull
₩2,476
+2.9%

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 (0.6%).

Revenue growth

  • 25%

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

    Default: the last 3 years' revenue growth (88.6% a year, annual reports), fading to 3% by year 5.

  • 19.5%

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

    Default: the last 3 years' revenue growth (88.6% a year, annual reports), fading to 3% by year 5.

  • 14%

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

    Default: the last 3 years' revenue growth (88.6% a year, annual reports), fading to 3% by year 5.

  • 8.5%

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

    Default: the last 3 years' revenue growth (88.6% 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 (88.6% a year, annual reports), fading to 3% by year 5.

Business

  • 0.6%

    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.

  • 2.2%

    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).

  • 2.7%

    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).

  • 33.1%

    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 0.23, 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)
₩572B
Net debt (borrowings and leases − cash and deposits)
−₩70B
+ Stakes and investments
₩42B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩87B
Shares
42,888,468
Share price
₩2,405
Market cap
₩103B

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₩92B₩338B₩542B₩715B₩854B₩974B₩1.1T₩1.1T
Growth14.3%265.8%60.5%25.0%19.5%14.0%8.5%3.0%
EBIT−₩1.3B−₩8.3B₩38B₩4.3B₩5.1B₩5.8B₩6.3B₩6.5B
EBIT margin−1.4%−2.5%7.1%0.6%0.6%0.6%0.6%0.6%
After-tax EBIT−₩908M−₩6B₩28B₩3.1B₩3.7B₩4.2B₩4.6B₩4.7B
+ Depreciation———₩16B₩19B₩21B₩23B₩24B
− Capital spending₩2.6B₩8.5B₩15B₩19B₩23B₩26B₩29B₩29B
− Working capital−₩29B₩115B−₩102B₩47B₩46B₩40B₩27B₩10B
Free cash flow———−₩48B−₩47B−₩40B−₩28B−₩11B
Discount factor———0.9310.8670.8070.7510.700
Present value———−₩45B−₩40B−₩32B−₩21B−₩7.8B

Terminal value −₩92B, worth −₩64B today: 30% 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 ₩6,509 a share)Now 0.37×₩2,6460.41×₩3,5790.55×₩8,9601.38×
P/E on run-rate earnings (Q2 2026 × 4: ₩324 a share)Now 7.42×₩6101.88×₩1,1583.57×₩3,92212.1×

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%—————
6.9%—————
7.4%—————
7.9%—————
8.4%—————

Now (TTM)

Market cap
₩103B
Enterprise value
₩24B
P/E
—
P/B
0.4×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.8%

Over time (at each year end)

20252024202320222021
Price₩3,170₩3,400₩3,785₩3,985₩7,200
Market cap₩136B₩146B₩162B₩171B₩309B
P/E———0.9×—
P/B0.5×0.5×0.5×0.5×1.8×
P/S0.3×0.4×1.8×2.1×0.7×
EV/EBITDA—————
Dividend yield0.6%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dasan Networks—0.4×0.2×—0.8%
Samsung Electronics8.7×2.3×2.7×—0.8%
LG Electronics24.7×1.0×0.3×—0.9%
Hanwha Vision16.4×2.1×1.0×—0.0%
RFHIC37.6×3.4×6.1×—0.9%
KMW—4.9×8.1×—0.0%
Intellian Technologies12.9×2.0×1.6×—0.4%
Similar companies (median)16.4×2.2×2.1×—0.6%

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

Also known as: Dasan Networks / 다산네트웍스 / 039560 / KRX:039560

Source: KRX statistical information