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SM Culture & Contents

048550 · KOSDAQ · ₩048550 · SM C&C

₩800 ₩0 (0.00%)End-of-day · Oct 29, 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

₩145

vs the current price (₩800)

Enterprise value
₩948M
Equity value
₩14B
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 82% 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 ₩800, the model needs an operating margin of 6.2% every year (it uses 0.7%).
  • Or revenue growth +45.8 points a year higher than assumed in each of the 5 years.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
₩145
−81.8%
Bull
₩516
−35.5%

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 (0.7%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-14% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-14% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-14% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-14% 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 (-14% a year, annual reports), fading to 3% by year 5.

Business

  • 0.7%

    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.

  • 3.7%

    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).

  • 4.6%

    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).

  • -10%

    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.

  • 0.6

    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 0.02, 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)
₩110B
Net debt (borrowings and leases − cash and deposits)
−₩14B
− Minority interests
₩795M
Shares
96,714,620
Share price
₩800
Market cap
₩77B

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₩127B₩110B₩100B₩99B₩93B₩89B₩89B₩92B
Growth−19.4%−13.6%−8.6%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩2.1B₩1.6B−₩1.3B₩695M₩649M₩626M₩625M₩644M
EBIT margin1.6%1.4%−1.3%0.7%0.7%0.7%0.7%0.7%
After-tax EBIT₩1.5B₩1.1B−₩937M₩504M₩470M₩454M₩453M₩467M
+ Depreciation———₩3.7B₩3.4B₩3.3B₩3.3B₩3.4B
− Capital spending₩2.4B₩2.2B₩10B₩4.6B₩4.3B₩4.1B₩4.1B₩4.2B
− Working capital₩45B−₩6.8B₩25B₩1.1B₩666M₩324M₩18M−₩268M
Free cash flow———−₩1.5B−₩1B−₩675M−₩368M−₩93M
Discount factor———0.9310.8670.8080.7520.700
Present value———−₩1.4B−₩893M−₩545M−₩277M−₩65M

Terminal value ₩5.9B, worth ₩4.1B today: 434% 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 ₩779 a share)Now 1.03×₩1,0671.37×₩1,3431.72×₩2,9083.73×

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%₩133₩144₩157₩173₩195
6.9%₩130₩139₩150₩164₩181
7.4%₩128₩136₩145₩157₩171
7.9%₩126₩133₩141₩151₩163
8.4%₩124₩130₩138₩146₩156

Now (TTM)

Market cap
₩77B
Enterprise value
₩52B
P/E
—
P/B
1.0×
P/S
0.7×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩1,330₩1,400₩1,887₩2,960₩4,485
Market cap₩129B₩135B₩183B₩286B₩434B
P/E———53.4×—
P/B1.6×1.6×1.9×2.7×4.4×
P/S1.3×1.2×1.4×1.8×3.1×
EV/EBITDA————171.8×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SM Culture & Contents—1.0×0.7×—0.0%
S-124.0×2.1×1.3×—0.0%
Cheil Worldwide9.8×1.3×0.5×—6.5%
Doosan Tesna54.7×4.1×5.7×—0.2%
Lotte Tour Development15.4×2.2×1.1×—0.0%
Soulbrain Holdings1.3×0.4×1.3×—1.3%
Innocean Worldwide5.5×0.6×0.3×—6.7%
Similar companies (median)12.6×1.7×1.2×—0.7%

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

Also known as: SM Culture & Contents / SM C&C / 048550 / KRX:048550

Source: KRX statistical information