Ask Warren

Woowon Development

046940 · KOSDAQ · ₩046940 · 우원개발

₩2,555 ₩0 (0.00%)End-of-day · Oct 28, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩18,212

vs the current price (₩2,555)

Enterprise value
₩301B
Equity value
₩329B
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 613% 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 ₩2,555, the model needs an operating margin of 0.9% every year (it uses 4.9%).
  • Margins ranged from 0.2% to 17.9% 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 1.1× against a typical 17.0× 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
₩8,213
+221.5%
Base
₩18,212
+612.8%
Bull
₩35,661
+1,295.7%

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 (4.9%).

Revenue growth

  • 24.2%

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

    Default: the last 3 years' revenue growth (24.2% a year, annual reports), fading to 3% by year 5.

  • 18.9%

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

    Default: the last 3 years' revenue growth (24.2% a year, annual reports), fading to 3% by year 5.

  • 13.6%

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

    Default: the last 3 years' revenue growth (24.2% a year, annual reports), fading to 3% by year 5.

  • 8.3%

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

    Default: the last 3 years' revenue growth (24.2% 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 (24.2% a year, annual reports), fading to 3% by year 5.

Business

  • 4.9%

    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.

  • 0.8%

    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).

  • 0.6%

    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).

  • 11.9%

    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 0.28, 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)
₩315B
Net debt (borrowings and leases − cash and deposits)
−₩12B
+ Stakes and investments
₩17B
Associates, long-term financial assets and deposits (book value)
Shares
18,074,350
Share price
₩2,555
Market cap
₩46B

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₩253B₩303B₩376B₩391B₩465B₩529B₩572B₩590B
Growth28.6%19.9%24.3%24.2%18.9%13.6%8.3%3.0%
EBIT₩1.4B₩2.8B₩67B₩19B₩23B₩26B₩28B₩29B
EBIT margin0.5%0.9%17.9%4.9%4.9%4.9%4.9%4.9%
After-tax EBIT₩985M₩2B₩49B₩14B₩17B₩19B₩20B₩21B
+ Depreciation₩2.4B₩2.5B₩2.5B₩3.1B₩3.7B₩4.2B₩4.6B₩4.7B
− Capital spending₩926M₩1.8B₩3.5B₩2.3B₩2.8B₩3.2B₩3.4B₩3.5B
− Working capital₩24B−₩7.3B₩14B₩9.1B₩8.8B₩7.5B₩5.2B₩2B
Free cash flow−₩22B₩10B₩34B₩5.6B₩8.7B₩12B₩16B₩20B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩5.2B₩7.5B₩9.9B₩12B₩14B

Terminal value ₩360B, worth ₩252B today: 84% 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 ₩8,867 a share)Now 0.29×₩3,6410.41×₩4,7640.54×₩7,1890.81×
Price / earnings (last 12 months: ₩2,334 a share)Now 1.09×₩3,0451.30×₩39,65117.0×₩157,29967.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩351 a share)Now 7.28×₩4581.30×₩5,96517.0×₩23,66267.4×

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%
6.4%₩19,357₩20,670₩22,278₩24,294₩26,897
6.9%₩17,726₩18,776₩20,037₩21,581₩23,516
7.4%₩16,352₩17,205₩18,212₩19,422₩20,904
7.9%₩15,179₩15,881₩16,698₩17,665₩18,826
8.4%₩14,167₩14,750₩15,422₩16,207₩17,133

Now (TTM)

Market cap
₩46B
Enterprise value
₩35B
P/E
1.1×
P/B
0.3×
P/S
0.1×
EV/EBITDA
0.6×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,530₩2,435₩3,130₩3,280₩4,860
Market cap₩64B₩44B₩57B₩59B₩88B
P/E1.3×59.8×38.4×15.9×74.4×
P/B0.4×0.4×0.5×0.6×0.9×
P/S0.2×0.1×0.2×0.3×0.5×
EV/EBITDA0.7×10.2×18.6×14.6×33.6×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Woowon Development1.1×0.3×0.1×0.6×0.0%
Hyundai Engineering & Construction23.7×1.1×0.4×—0.8%
Daewoo Engineering & Construction—1.5×0.8×—0.0%
GS Engineering & Construction19.7×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.8×0.5×0.4×—2.9%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Woowon Development / 우원개발 / 046940 / KRX:046940

Source: KRX statistical information