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Seronics

042600 · KOSDAQ · ₩042600 · 새로닉스

₩9,420▲ ₩520 (5.84%)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
−₩12B
Equity value
−₩75B
WACC
6.9%

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 ₩9,420, the model needs an operating margin of 9.7% every year (it uses −0.4%).
  • 100% 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 6.3× against a typical 8.1× 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
—

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 (−0.4%).

Revenue growth

  • -9%

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

    Default: the last 3 years' revenue growth (-9% a year, annual reports), fading to 3% by year 5.

  • -6%

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

    Default: the last 3 years' revenue growth (-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 (-9% a year, annual reports), fading to 3% by year 5.

  • 0%

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

    Default: the last 3 years' revenue growth (-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 (-9% a year, annual reports), fading to 3% by year 5.

Business

  • -0.4%

    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.

  • 2.3%

    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).

  • 1.6%

    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).

  • 18.1%

    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.

  • 0.8

    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 0.71, 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)
₩163B
Net debt (borrowings and leases − cash and deposits)
₩64B
Shares
12,423,574
Share price
₩9,420
Market cap
₩117B

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₩202B₩203B₩165B₩148B₩139B₩135B₩135B₩139B
Growth−7.8%0.4%−18.5%−9.0%−6.0%−3.0%0.0%3.0%
EBIT₩390M₩7.3B−₩2.6B−₩592M−₩556M−₩540M−₩540M−₩556M
EBIT margin0.2%3.6%−1.6%−0.4%−0.4%−0.4%−0.4%−0.4%
After-tax EBIT₩282M₩5.3B−₩1.9B−₩429M−₩403M−₩391M−₩391M−₩403M
+ Depreciation₩4.7B₩4.6B₩4B₩3.4B₩3.2B₩3.1B₩3.1B₩3.2B
− Capital spending₩5.8B₩1.6B₩1.9B₩2.4B₩2.2B₩2.2B₩2.2B₩2.2B
− Working capital−₩773M−₩1.4B−₩9.9B−₩2.6B−₩1.6B−₩755M₩0₩733M
Free cash flow−₩39M₩9.6B₩10B₩3.3B₩2.2B₩1.3B₩553M−₩163M
Discount factor———0.9350.8750.8180.7650.716
Present value———₩3B₩1.9B₩1.1B₩423M−₩117M

Terminal value −₩25B, worth −₩18B today: 153% 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 ₩8,544 a share)Now 1.10×₩7,9940.94×₩13,0821.53×₩22,8102.67×
Price / earnings (last 12 months: ₩1,489 a share)Now 6.32×₩4,1532.79×₩12,1008.12×₩21,38714.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,528 a share)Now 2.08×₩12,6262.79×₩36,7848.12×₩65,01614.4×

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%
5.9%—————
6.4%—————
6.9%—————
7.4%—————
7.9%—————

Now (TTM)

Market cap
₩117B
Enterprise value
₩178B
P/E
6.3×
P/B
1.1×
P/S
0.7×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩11,800₩9,830₩30,450₩14,950₩27,400
Market cap₩147B₩122B₩378B₩186B₩340B
P/E———2.1×11.9×
P/B1.6×1.0×2.2×0.9×3.2×
P/S0.9×0.6×1.9×0.8×1.8×
EV/EBITDA153.3×15.7×90.2×46.8×96.8×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Seronics6.3×1.1×0.7×—0.0%
Samsung Electro-Mechanics96.8×9.5×7.8×—0.2%
Doosan39.2×5.5×0.7×—0.4%
Hanwha Systems71.2×2.8×3.0×—0.8%
LG Innotek13.1×1.4×0.4×—0.5%
Isupetasys35.4×8.3×5.4×—0.0%
Daeduck Electronics44.8×7.0×5.0×—0.4%
Similar companies (median)42.0×6.3×4.0×—0.4%

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

Also known as: Seronics / 새로닉스 / 042600 / KRX:042600

Source: KRX statistical information