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Korea Electronic Certification Authority

041460 · KOSDAQ · ₩041460 · 한국전자인증

₩3,055▲ ₩5 (0.16%)End-of-day · Oct 30, 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

₩4,984

vs the current price (₩3,055)

Enterprise value
₩77B
Equity value
₩92B
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 is 63% 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 ₩3,055, the model needs an operating margin of 8.1% every year (it uses 15.0%).
  • Or revenue growth −12.4 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 8.2% to 18.3% 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 9.9× against a typical 22.0× 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
₩3,446
+12.8%
Base
₩4,984
+63.2%
Bull
₩7,522
+146.2%

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 (15.0%).

Revenue growth

  • -1.6%

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

    Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.

  • -0.4%

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

    Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.

  • 0.7%

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

    Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.

  • 1.9%

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

    Default: the last 3 years' revenue growth (-1.6% 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 (-1.6% a year, annual reports), fading to 3% by year 5.

Business

  • 15%

    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.

  • 2.1%

    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).

  • 2.6%

    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).

  • -10%

    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.

  • 4.01%

    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.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.24, 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.

  • 5.51%

    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)
₩39B
Net debt (borrowings and leases − cash and deposits)
−₩15B
− Minority interests
₩160M
Shares
18,430,109
Share price
₩3,055
Market cap
₩56B

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₩38B₩37B₩37B₩39B₩39B₩39B₩40B₩41B
Growth−0.5%−3.3%−0.9%−1.6%−0.4%0.7%1.9%3.0%
EBIT₩3.1B₩4.7B₩6.7B₩5.8B₩5.8B₩5.8B₩5.9B₩6.1B
EBIT margin8.2%12.7%18.3%15.0%15.0%15.0%15.0%15.0%
After-tax EBIT₩2.3B₩3.4B₩4.9B₩4.2B₩4.2B₩4.2B₩4.3B₩4.4B
+ Depreciation———₩814M₩811M₩817M₩832M₩857M
− Capital spending₩373M₩895M₩1.6B₩1B₩1B₩1B₩1B₩1.1B
− Working capital₩1.2B−₩4.1B−₩1.3B₩63M₩16M−₩27M−₩74M−₩119M
Free cash flow———₩4B₩4B₩4.1B₩4.2B₩4.4B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩3.7B₩3.5B₩3.3B₩3.2B₩3.1B

Terminal value ₩85B, worth ₩60B today: 78% 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 ₩3,557 a share)Now 0.86×₩3,5801.01×₩4,9401.39×₩11,0843.12×
Price / earnings (last 12 months: ₩309 a share)Now 9.88×₩3,47911.2×₩6,81122.0×₩11,41536.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩269 a share)Now 11.4×₩3,02311.2×₩5,91822.0×₩9,91836.9×

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%₩5,101₩5,484₩5,956₩6,552₩7,329
6.8%₩4,730₩5,042₩5,420₩5,885₩6,473
7.3%₩4,417₩4,676₩4,984₩5,357₩5,815
7.8%₩4,151₩4,369₩4,624₩4,928₩5,295
8.3%₩3,921₩4,106₩4,321₩4,573₩4,872

Now (TTM)

Market cap
₩56B
Enterprise value
₩40B
P/E
9.9×
P/B
0.9×
P/S
1.4×
EV/EBITDA
—
Dividend yield
3.1%

Over time (at each year end)

20252024202320222021
Price₩3,725₩2,920₩4,595₩4,745₩10,700
Market cap₩69B₩54B₩85B₩87B₩197B
P/E14.7×13.6×35.6×25.0×47.3×
P/B1.1×0.9×1.6×1.9×4.5×
P/S1.9×1.5×2.2×2.3×5.7×
EV/EBITDA—————
Dividend yield2.6%2.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea Electronic Certification Authority9.9×0.9×1.4×—3.1%
Krafton10.0×1.2×1.9×—1.2%
Hyundai Autoever41.5×4.2×1.7×—0.7%
NC7.0×1.2×2.1×8.5×0.6%
Netmarble7.1×0.5×1.0×—2.6%
PearlAbyss8.1×2.1×3.0×5.3×0.0%
Shift UP9.0×1.8×7.1×—0.0%
Similar companies (median)8.5×1.5×2.0×6.9×0.6%

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

Also known as: Korea Electronic Certification Authority / 한국전자인증 / 041460 / KRX:041460

Source: KRX statistical information