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041520 · KOSDAQ · ₩041520 · 이엘씨

₩11,750▲ ₩270 (2.35%)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

₩2,871

vs the current price (₩11,750)

Enterprise value
−₩47B
Equity value
₩35B
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 76% 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 ₩11,750, the model needs an operating margin of 14.8% every year (it uses −7.0%).
  • Margins ranged from −17.7% to −2.4% 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.
  • 84% 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.
  • 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
₩3,412
−71.0%
Base
₩2,871
−75.6%
Bull
₩2,331
−80.2%

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 (−7.0%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-34.9% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-34.9% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-34.9% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-34.9% 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 (-34.9% a year, annual reports), fading to 3% by year 5.

Business

  • -7%

    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.

  • 3.8%

    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).

  • 9.1%

    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).

  • 40%

    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.

  • 4.08%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 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 0.26, 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.

  • 5.58%

    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)
₩47B
Net debt (borrowings and leases − cash and deposits)
−₩82B
Shares
12,188,730
Share price
₩11,750
Market cap
₩143B

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₩87B₩29B₩38B₩43B₩40B₩38B₩38B₩39B
Growth−36.7%−66.4%29.6%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT−₩15B−₩4.7B−₩901M−₩3B−₩2.8B−₩2.7B−₩2.7B−₩2.8B
EBIT margin−17.7%−16.0%−2.4%−7.0%−7.0%−7.0%−7.0%−7.0%
After-tax EBIT−₩11B−₩3.4B−₩653M−₩2.2B−₩2B−₩1.9B−₩1.9B−₩2B
+ Depreciation₩2.5B₩1.5B₩1.3B₩1.6B₩1.5B₩1.5B₩1.5B₩1.5B
− Capital spending₩836M₩996M₩8.7B₩3.9B₩3.6B₩3.5B₩3.5B₩3.6B
− Working capital−₩16B−₩1.3B₩2.7B−₩1.9B−₩1.1B−₩557M−₩31M₩460M
Free cash flow₩6.1B−₩1.6B−₩11B−₩2.5B−₩3B−₩3.4B−₩3.9B−₩4.6B
Discount factor———0.9310.8670.8080.7520.700
Present value———−₩2.4B−₩2.6B−₩2.8B−₩3B−₩3.2B

Terminal value −₩47B, worth −₩33B today: 70% 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 ₩14,349 a share)Now 0.82×₩4,6480.32×₩6,3200.44×₩9,2430.64×

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%₩2,915₩2,534₩2,065₩1,474₩707
6.9%₩3,209₩2,892₩2,509₩2,037₩1,443
7.4%₩3,459₩3,191₩2,871₩2,486₩2,012
7.9%₩3,673₩3,443₩3,173₩2,852₩2,465
8.4%₩3,859₩3,660₩3,429₩3,157₩2,835

Now (TTM)

Market cap
₩143B
Enterprise value
₩61B
P/E
8.7×
P/B
0.8×
P/S
3.0×
EV/EBITDA
12.7×
Dividend yield
3.1%

Over time (at each year end)

20252024202320222021
Price₩7,150₩4,905₩7,200₩5,050₩9,080
Market cap₩87B₩60B₩88B₩62B₩111B
P/E10.6×———44.7×
P/B0.5×0.3×0.5×0.3×0.5×
P/S2.3×2.0×1.0×0.4×0.6×
EV/EBITDA35.6×————
Dividend yield5.1%6.7%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
ELC8.7×0.8×3.0×12.7×3.1%
TSE29.1×6.4×5.4×—0.2%
Kctech21.7×3.3×4.0×16.7×0.5%
Classys12.8×3.2×4.8×10.0×3.7%
Park Systems69.3×4.7×8.3×—0.2%
DI42.0×5.8×2.6×—0.6%
LivsMed—6.7×21.5×—0.0%
Similar companies (median)29.1×5.3×5.1×13.4×0.3%

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

Also known as: ELC / 이엘씨 / 041520 / KRX:041520

Source: KRX statistical information