KOSPI · 047810 · Aerospace & Defense · ₩047810

Korea Aerospace Industries한국항공우주

047810 · KOSPI · ₩047810 · 한국항공우주

₩102,700▲ ₩4,000 (4.05%)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

₩10,824

vs the current price (₩102,700)

Enterprise value: ₩3.6T
Equity value: ₩1.1T
WACC: 6.7%

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 89% 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 ₩102,700, the model needs an operating margin of 16.6% every year (it uses 6.0%).
Or revenue growth +39.2 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩5.3T, operating profit ₩346B (6.5% margin) (3 brokers). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩6.8T, operating profit ₩608B (8.9% margin) (3 brokers). The model starts from the last 12 months reported.
Today's P/E is 56.5× against a typical 55.7× 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: ₩10,824; −89.5%
Bull: ₩52,217; −49.2%

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 (6.0%).

Revenue growth

Revenue growth, year 19.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 44.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (9.9% 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 (9.9% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin6%
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 & amortisation4.4%
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 spending5.5%
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 capital25.2%
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.
Beta0.6
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 0.41, 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): ₩4.4T
Net debt (borrowings and leases − cash and deposits): ₩2.6T
+ Stakes and investments: ₩100B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩83B
Shares: 97,475,107
Share price: ₩102,700
Market cap: ₩10T

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	₩3.8T	₩3.6T	₩3.7T	₩4.9T	₩5.3T	₩5.6T	₩5.9T	₩6T
Growth	37.0%	−4.9%	1.7%	9.9%	8.2%	6.4%	4.7%	3.0%
EBIT	₩248B	₩241B	₩269B	₩292B	₩316B	₩336B	₩352B	₩363B
EBIT margin	6.5%	6.6%	7.3%	6.0%	6.0%	6.0%	6.0%	6.0%
After-tax EBIT	₩179B	₩175B	₩195B	₩212B	₩229B	₩244B	₩255B	₩263B
+ Depreciation	—	—	—	₩214B	₩232B	₩247B	₩258B	₩266B
− Capital spending	₩176B	₩247B	₩190B	₩268B	₩290B	₩308B	₩323B	₩332B
− Working capital	₩1.1T	₩932B	₩1.1T	₩111B	₩101B	₩85B	₩66B	₩44B
Free cash flow	—	—	—	₩48B	₩71B	₩97B	₩124B	₩152B
Discount factor	—	—	—	0.937	0.878	0.823	0.771	0.722
Present value	—	—	—	₩45B	₩62B	₩80B	₩96B	₩110B

Terminal value ₩4.4T, worth ₩3.2T today: 89% 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 ₩19,491 a share)Now 5.27×	₩58,7813.02×	₩68,2263.50×	₩131,0006.72×
Price / earnings (last 12 months: ₩1,819 a share)Now 56.5×	₩37,77520.8×	₩101,27055.7×	₩131,00072.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,472 a share)Now 69.8×	₩30,56020.8×	₩81,92855.7×	₩105,98072.0×

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%
5.7%	₩14,730	₩17,852	₩21,795	₩26,942	₩33,955
6.2%	₩10,381	₩12,745	₩15,655	₩19,330	₩24,125
6.7%	₩6,802	₩8,626	₩10,824	₩13,528	₩16,943
7.2%	₩3,805	₩5,234	₩6,925	₩8,962	₩11,469
7.7%	₩1,262	₩2,394	₩3,715	₩5,278	₩7,160

Now (TTM)

Market cap: ₩10T
Enterprise value: ₩13T
P/E: 56.5×
P/B: 5.3×
P/S: 2.3×
EV/EBITDA: —
Dividend yield: 0.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩114,400	₩54,900	₩50,000	₩50,900	₩32,450
Market cap	₩11T	₩5.4T	₩4.9T	₩5T	₩3.2T
P/E	60.0×	31.1×	21.8×	41.9×	49.5×
P/B	6.1×	3.1×	3.1×	3.5×	2.5×
P/S	3.0×	1.5×	1.3×	1.8×	1.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.4%	0.9%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Korea Aerospace Industries	56.5×	5.3×	2.3×	—	0.5%
Hanwha Aerospace	20.1×	3.4×	1.4×	—	0.9%
LIG Defense&Aerospace	34.5×	6.2×	2.1×	—	0.7%
Satrec Initiative	64.2×	2.4×	2.8×	37.9×	0.2%
Firstec	17.7×	2.9×	0.7×	—	0.0%
Samyang Comtech	8.5×	1.5×	1.6×	—	0.0%
Vitzro Nextech	—	4.5×	6.5×	—	0.0%
Similar companies (median)	20.1×	3.1×	1.8×	37.9×	0.1%

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

Also known as: Korea Aerospace Industries / 한국항공우주 / 047810 / KRX:047810

Source: KRX statistical information