KOSDAQ · 048470 · Retail & Trade · ₩048470

DAE Dong Steel대동스틸

048470 · KOSDAQ · ₩048470 · 대동스틸

₩2,520▼ ₩25 (0.98%)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

With these assumptions the model gives no positive value.

Enterprise value: −₩13B
Equity value: −₩4.2B
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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩2,520, the model needs an operating margin of 1.4% every year (it uses −0.8%).
Margins ranged from −3.3% to 10.6% 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.
72% 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 8.1× against a typical 22.1× 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: ₩2,083; −17.3%

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 (−0.8%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-13.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-13.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-13.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-13.2% 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 (-13.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-0.8%
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 & amortisation0.1%
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 spending0.1%
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 capital28.2%
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 0.19, 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): ₩124B
Net debt (borrowings and leases − cash and deposits): −₩8.6B
Shares: 9,650,000
Share price: ₩2,520
Market cap: ₩24B

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	₩138B	₩140B	₩119B	₩111B	₩104B	₩100B	₩100B	₩103B
Growth	−24.6%	1.5%	−14.7%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	−₩2.4B	−₩2B	−₩1.2B	−₩890M	−₩830M	−₩801M	−₩800M	−₩824M
EBIT margin	−1.8%	−1.4%	−1.0%	−0.8%	−0.8%	−0.8%	−0.8%	−0.8%
After-tax EBIT	−₩1.8B	−₩1.4B	−₩846M	−₩645M	−₩602M	−₩581M	−₩580M	−₩597M
+ Depreciation	—	—	—	₩111M	₩104M	₩100M	₩100M	₩103M
− Capital spending	—	—	₩174M	₩111M	₩104M	₩100M	₩100M	₩103M
− Working capital	₩3.2B	−₩10B	₩15B	−₩3.5B	−₩2.1B	−₩1B	−₩56M	₩846M
Free cash flow	—	—	—	₩2.8B	₩1.5B	₩443M	−₩523M	−₩1.4B
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	₩2.6B	₩1.3B	₩358M	−₩393M	−₩1B

Terminal value −₩22B, worth −₩16B today: 123% 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 ₩7,759 a share)Now 0.32×	₩2,9640.38×	₩3,9780.51×	₩5,5230.71×
Price / earnings (last 12 months: ₩310 a share)Now 8.14×	₩1,4474.67×	₩6,85222.1×	₩23,38575.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩982 a share)Now 2.57×	₩4,5864.67×	₩21,71822.1×	₩74,11675.5×

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%	—	—	—	—	—
6.9%	₩48	—	—	—	—
7.4%	₩161	—	—	—	—
7.9%	₩258	₩17	—	—	—
8.4%	₩340	₩127	—	—	—

Now (TTM)

Market cap: ₩24B
Enterprise value: ₩16B
P/E: 8.1×
P/B: 0.3×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 1.2%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,795	₩3,125	₩4,090	₩4,025	₩5,830
Market cap	₩27B	₩30B	₩39B	₩39B	₩56B
P/E	97.6×	67.2×	—	—	3.9×
P/B	0.4×	0.4×	0.6×	0.5×	0.7×
P/S	0.2×	0.2×	0.3×	0.2×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	1.1%	1.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
DAE Dong Steel	8.1×	0.3×	0.2×	—	1.2%
Samsung C&T	18.8×	0.5×	1.2×	—	0.9%
POSCO International	10.6×	1.3×	0.3×	—	3.7%
ISC	45.3×	6.0×	12.6×	—	0.5%
Youngone	5.1×	0.7×	0.7×	—	3.1%
Dong SUH Companies	18.9×	1.6×	5.1×	—	4.2%
Shinsegae	14.4×	0.5×	0.3×	—	2.0%
Similar companies (median)	16.6×	1.0×	1.0×	—	2.6%

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

Also known as: DAE Dong Steel / 대동스틸 / 048470 / KRX:048470

Source: KRX statistical information