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SG&G

040610 · KOSDAQ · ₩040610 · SG&G

₩2,835▼ ₩25 (0.87%)End-of-day · Oct 27, 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

₩630

vs the current price (₩2,835)

Enterprise value
₩65B
Equity value
₩11B
WACC
5.6%

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 78% 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 ₩2,835, the model needs an operating margin of 10.9% every year (it uses 7.4%).
  • Or revenue growth +13.2 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −1.5% to 12.6% 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.
  • 96% 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 0.5× against a typical 2.4× 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
—
Base
₩630
−77.8%
Bull
₩4,734
+67.0%

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 (7.4%).

Revenue growth

  • 3.7%

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

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3.6%

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

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3.4%

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

    Default: the last 3 years' revenue growth (3.7% a year, annual reports), fading to 3% by year 5.

  • 3.2%

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

    Default: the last 3 years' revenue growth (3.7% 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 (3.7% a year, annual reports), fading to 3% by year 5.

Business

  • 7.4%

    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%

    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).

  • 1.3%

    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).

  • 35.2%

    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 0.32, 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)
₩49B
Net debt (borrowings and leases − cash and deposits)
₩55B
Shares
17,043,598
Share price
₩2,835
Market cap
₩48B

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₩42B₩51B₩48B₩51B₩53B₩54B₩56B₩58B
Growth−1.9%21.2%−6.0%3.7%3.6%3.4%3.2%3.0%
EBIT₩3B₩6.4B₩3.7B₩3.8B₩3.9B₩4B₩4.2B₩4.3B
EBIT margin7.0%12.6%7.7%7.4%7.4%7.4%7.4%7.4%
After-tax EBIT₩2.1B₩4.6B₩2.7B₩2.7B₩2.8B₩2.9B₩3B₩3.1B
+ Depreciation———₩508M₩527M₩545M₩562M₩579M
− Capital spending₩406M₩731M₩725M₩661M₩685M₩708M₩731M₩753M
− Working capital−₩212M−₩2.2B−₩22B₩639M₩644M₩630M₩614M₩594M
Free cash flow———₩1.9B₩2B₩2.1B₩2.2B₩2.3B
Discount factor———0.9470.8960.8480.8030.760
Present value———₩1.8B₩1.8B₩1.8B₩1.8B₩1.8B

Terminal value ₩74B, worth ₩56B today: 86% 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 ₩29,836 a share)Now 0.10×₩3,9770.13×₩5,0000.17×₩7,6040.25×
Price / earnings (last 12 months: ₩5,594 a share)Now 0.51×₩6,0901.09×₩13,3852.39×₩41,3787.40×
P/E on run-rate earnings (Q2 2026 × 4: ₩16,054 a share)Now 0.18×₩17,4791.09×₩38,4192.39×₩118,7637.40×

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%
4.6%₩1,037₩1,494₩2,121₩3,041₩4,520
5.1%₩506₩830₩1,257₩1,843₩2,702
5.6%₩90₩328₩630₩1,027₩1,573
6.1%——₩155₩436₩805
6.6%————₩249

Now (TTM)

Market cap
₩48B
Enterprise value
₩102B
P/E
0.5×
P/B
0.1×
P/S
1.0×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,610₩3,188₩3,192₩3,190₩4,770
Market cap₩62B₩54B₩54B₩54B₩81B
P/E2.3×3.4×2.7×1.1×6.5×
P/B0.1×0.1×0.2×0.2×0.3×
P/S1.3×1.1×1.3×1.3×2.3×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SG&G0.5×0.1×1.0×—0.0%
Hyundai Mobis8.2×0.6×0.5×—2.0%
SL6.0×0.8×0.4×3.7×0.0%
HL Mando10.5×0.6×0.2×—2.0%
Samhyun—13.0×18.3×—0.0%
Hyundai WIA19.0×0.4×0.2×—2.4%
SNT Dynamics13.6×0.7×0.9×—6.7%
Similar companies (median)10.5×0.7×0.4×3.7×2.0%

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

Also known as: SG&G / 040610 / KRX:040610

Source: KRX statistical information