KOSDAQ · 047770 · Textiles & Apparel · ₩047770

Codes Combine코데즈컴바인

047770 · KOSDAQ · ₩047770 · 코데즈컴바인

₩2,970▲ ₩75 (2.59%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩1,300

vs the current price (₩2,970)

Enterprise value: ₩45B
Equity value: ₩49B
WACC: 7.5%

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 56% 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 ₩2,970, the model needs an operating margin of 19.1% every year (it uses 8.2%).
Or revenue growth +21.4 points a year higher than assumed in each of the 5 years.
Margins ranged from 2.7% to 11.2% 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.
67% 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.
Today's P/E is 12.0× against a typical 15.3× 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: ₩765; −74.2%
Base: ₩1,300; −56.2%
Bull: ₩2,203; −25.8%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (8.2%).

Revenue growth

Revenue growth, year 10.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 21.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.2%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation2.6%
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).
Capital spending3.2%
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).
Working capital1.2%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
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.
Beta0.62
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 0.43, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩44B
Net debt (borrowings and leases − cash and deposits): −₩6.7B
− Minority interests: ₩2.3B
Shares: 37,842,602
Share price: ₩2,970
Market cap: ₩112B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩42B	₩40B	₩40B	₩44B	₩45B	₩46B	₩47B	₩48B
Growth	7.4%	−5.6%	0.3%	0.6%	1.2%	1.8%	2.4%	3.0%
EBIT	₩2.9B	₩1.1B	₩2.4B	₩3.6B	₩3.7B	₩3.7B	₩3.8B	₩3.9B
EBIT margin	7.0%	2.7%	6.1%	8.2%	8.2%	8.2%	8.2%	8.2%
After-tax EBIT	₩2.1B	₩768M	₩1.8B	₩2.6B	₩2.7B	₩2.7B	₩2.8B	₩2.9B
+ Depreciation	—	—	—	₩1.1B	₩1.2B	₩1.2B	₩1.2B	₩1.2B
− Capital spending	₩3.3B	₩603M	₩134M	₩1.4B	₩1.4B	₩1.5B	₩1.5B	₩1.5B
− Working capital	₩2B	−₩5.4B	−₩1.5B	₩3.2M	₩6.4M	₩9.7M	₩13M	₩17M
Free cash flow	—	—	—	₩2.4B	₩2.4B	₩2.4B	₩2.5B	₩2.6B
Discount factor	—	—	—	0.930	0.865	0.805	0.748	0.696
Present value	—	—	—	₩2.2B	₩2.1B	₩2B	₩1.9B	₩1.8B

Terminal value ₩50B, worth ₩35B 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:

	Low	Typical	High
Price / book (book value ₩2,036 a share)Now 1.46×	₩1,7430.86×	₩2,4821.22×	₩3,6221.78×
Price / earnings (last 12 months: ₩247 a share)Now 12.0×	₩2,0448.26×	₩3,79115.3×	₩8,51934.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩632 a share)Now 4.70×	₩5,2238.26×	₩9,68815.3×	₩21,76834.4×

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%
6.5%	₩1,344	₩1,444	₩1,566	₩1,718	₩1,914
7.0%	₩1,240	₩1,322	₩1,420	₩1,540	₩1,689
7.5%	₩1,153	₩1,220	₩1,300	₩1,396	₩1,514
8.0%	₩1,077	₩1,134	₩1,201	₩1,279	₩1,373
8.5%	₩1,012	₩1,060	₩1,116	₩1,181	₩1,258

Now (TTM)

Market cap: ₩112B
Enterprise value: ₩105B
P/E: 12.0×
P/B: 1.5×
P/S: 2.6×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,835	₩1,535	₩1,791	₩1,745	₩2,585
Market cap	₩107B	₩58B	₩68B	₩66B	₩98B
P/E	24.1×	31.2×	18.3×	8.7×	14.8×
P/B	1.5×	0.9×	1.1×	1.1×	1.9×
P/S	2.7×	1.5×	1.6×	1.7×	2.6×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Codes Combine	12.0×	1.5×	2.6×	—	0.0%
F&F	4.5×	1.1×	1.2×	—	4.4%
LF	5.5×	0.4×	0.3×	4.5×	3.3%
Chokwang Leather	43.6×	0.7×	4.8×	57.9×	0.0%
Handsome	7.1×	0.3×	0.3×	—	0.0%
Hansae	9.4×	0.4×	0.2×	—	0.0%
JS	4.0×	0.6×	0.2×	—	5.3%
Similar companies (median)	6.3×	0.5×	0.3×	31.2×	1.6%

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

Also known as: Codes Combine / 코데즈컴바인 / 047770 / KRX:047770

Source: KRX statistical information