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Sangsin Brake

041650 · KOSPI · ₩041650 · 상신브레이크

₩1,944▼ ₩16 (0.82%)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

With these assumptions the model gives no positive value.

Enterprise value
₩154B
Equity value
−₩64B
WACC
4.6%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩1,944, the model needs an operating margin of 3.2% every year (it uses 2.5%).
  • 53% 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.
  • Today's P/E is 8.9× against a typical 8.7× 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
—
Bull
₩30,765
+1,482.6%

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 (2.5%).

Revenue growth

  • 3.5%

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

    Default: the last 3 years' revenue growth (3.5% 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 (3.5% a year, annual reports), fading to 3% by year 5.

  • 3.3%

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

    Default: the last 3 years' revenue growth (3.5% a year, annual reports), fading to 3% by year 5.

  • 3.1%

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

    Default: the last 3 years' revenue growth (3.5% 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 (3.5% a year, annual reports), fading to 3% by year 5.

Business

  • 2.5%

    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.

  • 2.3%

    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).

  • 2.9%

    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).

  • 39.8%

    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 0.18, 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)
₩536B
Net debt (borrowings and leases − cash and deposits)
₩211B
+ Stakes and investments
₩431M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩7.3B
Shares
21,471,450
Share price
₩1,944
Market cap
₩42B

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₩575B₩579B₩542B₩554B₩573B₩592B₩611B₩629B
Growth17.7%0.5%−6.3%3.5%3.4%3.3%3.1%3.0%
EBIT₩28B₩21B−₩1.4B₩14B₩14B₩15B₩15B₩16B
EBIT margin4.8%3.6%−0.3%2.5%2.5%2.5%2.5%2.5%
After-tax EBIT₩20B₩15B−₩985M₩10B₩10B₩11B₩11B₩11B
+ Depreciation———₩13B₩13B₩14B₩14B₩14B
− Capital spending₩25B₩11B₩13B₩16B₩17B₩17B₩18B₩18B
− Working capital₩19B₩33B−₩29B₩7.5B₩7.5B₩7.5B₩7.3B₩7.3B
Free cash flow———−₩740M−₩551M−₩349M₩96M₩335M
Discount factor———0.9560.9140.8740.8360.799
Present value———−₩707M−₩504M−₩305M₩81M₩268M

Terminal value ₩194B, worth ₩155B today: 101% 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 ₩10,263 a share)Now 0.19×₩2,6310.26×₩3,5730.35×₩4,4680.44×
Price / earnings (last 12 months: ₩218 a share)Now 8.91×₩8593.93×₩1,9108.75×₩7,08232.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩104 a share)Now 18.6×₩4113.93×₩9138.75×₩3,38632.4×

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%
3.6%₩1,090₩1,493₩2,118₩3,270₩6,274
4.1%—————
4.6%—————
5.1%—————
5.6%—————

Now (TTM)

Market cap
₩42B
Enterprise value
₩248B
P/E
8.9×
P/B
0.2×
P/S
0.1×
EV/EBITDA
—
Dividend yield
2.6%

Over time (at each year end)

20252024202320222021
Price₩2,705₩2,895₩3,650₩3,025₩3,880
Market cap₩58B₩62B₩78B₩65B₩83B
P/E—3.8×5.6×90.5×8.5×
P/B0.3×0.3×0.4×0.3×0.5×
P/S0.1×0.1×0.1×0.1×0.2×
EV/EBITDA—————
Dividend yield1.8%3.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sangsin Brake8.9×0.2×0.1×—2.6%
Hyundai Mobis8.7×0.6×0.5×—1.8%
SL6.1×0.9×0.4×3.7×0.0%
HL Mando10.7×0.6×0.2×—1.9%
Samhyun—13.4×18.9×—0.0%
Hyundai WIA19.3×0.4×0.2×—2.4%
SNT Dynamics13.4×0.7×0.9×—6.8%
Similar companies (median)10.7×0.7×0.5×3.7×1.9%

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

Also known as: Sangsin Brake / 상신브레이크 / 041650 / KRX:041650

Source: KRX statistical information