KOSDAQ · 039980 · IT services · ₩039980

Polaris AI폴라리스AI

039980 · KOSDAQ · ₩039980 · 폴라리스AI

₩4,520▼ ₩570 (11.20%)End-of-day · Oct 30, 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

With these assumptions the model gives no positive value.

Enterprise value: −₩13B
Equity value: −₩2.8B
WACC: 7.3%

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 ₩4,520, the model needs an operating margin of 12.4% every year (it uses −2.6%).
Margins ranged from −10.7% to 3.9% 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.
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.

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: ₩65; −98.6%

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 (−2.6%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-18.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-18.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-18.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-18.6% 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 (-18.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-2.6%
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.
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 & amortisation1.7%
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 spending1.4%
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 capital40%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
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 0.28, 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)5.51%
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): ₩43B
Net debt (borrowings and leases − cash and deposits): −₩11B
Shares: 14,381,214
Share price: ₩4,520
Market cap: ₩65B

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	₩58B	₩53B	₩44B	₩38B	₩36B	₩35B	₩34B	₩35B
Growth	−27.8%	−9.0%	−17.8%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩2.3B	−₩1.3B	−₩4.7B	−₩997M	−₩930M	−₩898M	−₩896M	−₩923M
EBIT margin	3.9%	−2.5%	−10.7%	−2.6%	−2.6%	−2.6%	−2.6%	−2.6%
After-tax EBIT	₩1.6B	−₩951M	−₩3.4B	−₩723M	−₩674M	−₩651M	−₩650M	−₩669M
+ Depreciation	₩671M	₩1.1B	₩836M	₩652M	₩608M	₩587M	₩586M	₩603M
− Capital spending	₩365M	₩1.5B	₩301M	₩537M	₩501M	₩483M	₩482M	₩497M
− Working capital	₩527M	−₩32B	−₩1.9B	−₩1.7B	−₩1B	−₩501M	−₩28M	₩414M
Free cash flow	₩1.4B	₩31B	−₩932M	₩1.1B	₩461M	−₩46M	−₩519M	−₩976M
Discount factor	—	—	—	0.932	0.868	0.809	0.754	0.703
Present value	—	—	—	₩1B	₩400M	−₩38M	−₩391M	−₩686M

Terminal value −₩19B, worth −₩14B today: 102% 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 ₩6,497 a share)Now 0.70×	₩5,5000.85×	₩7,9641.23×	₩14,6142.25×

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%
6.3%	—	—	—	—	—
6.8%	₩0	—	—	—	—
7.3%	₩78	—	—	—	—
7.8%	₩143	₩37	—	—	—
8.3%	₩200	₩106	—	—	—

Now (TTM)

Market cap: ₩65B
Enterprise value: ₩54B
P/E: —
P/B: 0.7×
P/S: 1.5×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩8,946	₩15,010	₩5,329	₩4,288	₩5,779
Market cap	₩129B	₩216B	₩77B	₩62B	₩83B
P/E	—	152.4×	66.7×	—	82.1×
P/B	1.4×	2.3×	1.0×	0.9×	1.2×
P/S	2.9×	4.1×	1.3×	0.8×	1.0×
EV/EBITDA	—	—	22.6×	—	28.8×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Polaris AI	—	0.7×	1.5×	—	0.0%
Samsung SDS	24.2×	1.5×	1.1×	—	1.6%
LG CNS	14.5×	2.3×	1.1×	—	2.6%
Itcenglobal	6.7×	2.9×	0.0×	—	0.0%
DB	6.7×	0.9×	0.6×	15.7×	0.0%
Lotte Innovate	14.9×	0.6×	0.2×	—	4.1%
Contec	20.8×	1.6×	2.4×	—	0.0%
Similar companies (median)	14.7×	1.6×	0.9×	15.7×	0.8%

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

Also known as: Polaris AI / 폴라리스AI / 039980 / KRX:039980

Source: KRX statistical information