Ask Warren

Gaeasoft

051160 · KOSDAQ · ₩051160 · 지어소프트

₩13,110▲ ₩890 (7.28%)End-of-day · Oct 27, 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

₩30,878

vs the current price (₩13,110)

Enterprise value
₩360B
Equity value
₩416B
WACC
7.3%

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 136% 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 ₩13,110, the model needs an operating margin of 1.1% every year (it uses 3.6%).
  • Or revenue growth −21.0 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 11.2× against a typical 8.5× 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
₩13,148
+0.3%
Base
₩30,878
+135.5%
Bull
₩61,957
+372.6%

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 (3.6%).

Revenue growth

  • 8.9%

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

    Default: the last 3 years' revenue growth (8.9% a year, annual reports), fading to 3% by year 5.

  • 7.4%

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

    Default: the last 3 years' revenue growth (8.9% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (8.9% a year, annual reports), fading to 3% by year 5.

  • 4.5%

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

    Default: the last 3 years' revenue growth (8.9% 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 (8.9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.6%

    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.

  • 0.2%

    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).

  • 0.3%

    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).

  • -4.7%

    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.

  • 4.03%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 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 -0.12, 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.

  • 5.53%

    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)
₩582B
Net debt (borrowings and leases − cash and deposits)
−₩135B
+ Stakes and investments
₩8.7B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩87B
Shares
13,482,648
Share price
₩13,110
Market cap
₩177B

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₩509B₩547B₩587B₩634B₩681B₩721B₩753B₩776B
Growth11.9%7.5%7.3%8.9%7.4%5.9%4.5%3.0%
EBIT₩15B₩29B₩25B₩23B₩25B₩26B₩27B₩28B
EBIT margin3.0%5.3%4.3%3.6%3.6%3.6%3.6%3.6%
After-tax EBIT₩11B₩21B₩18B₩17B₩18B₩19B₩20B₩20B
+ Depreciation———₩1.3B₩1.4B₩1.4B₩1.5B₩1.6B
− Capital spending₩917M₩1B₩2.8B₩1.9B₩2B₩2.2B₩2.3B₩2.3B
− Working capital−₩98B₩5.6B−₩1.7B−₩2.4B−₩2.2B−₩1.9B−₩1.5B−₩1.1B
Free cash flow———₩18B₩19B₩20B₩20B₩21B
Discount factor———0.9320.8680.8090.7530.702
Present value———₩17B₩17B₩16B₩15B₩14B

Terminal value ₩398B, worth ₩280B 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:

LowTypicalHigh
Price / book (book value ₩11,513 a share)Now 1.14×₩8,1200.71×₩10,2590.89×₩34,0842.96×
Price / earnings (last 12 months: ₩1,174 a share)Now 11.2×₩7,4216.32×₩10,0128.52×₩43,63537.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,461 a share)Now 8.97×₩9,2316.32×₩12,4548.52×₩54,28137.2×

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%
6.3%₩31,447₩33,960₩37,055₩40,961₩46,041
6.8%₩29,102₩31,161₩33,647₩36,710₩40,574
7.3%₩27,128₩28,842₩30,878₩33,339₩36,369
7.8%₩25,443₩26,889₩28,585₩30,600₩33,034
8.3%₩23,988₩25,222₩26,653₩28,331₩30,325

Now (TTM)

Market cap
₩177B
Enterprise value
₩42B
P/E
11.2×
P/B
1.1×
P/S
0.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,890₩8,120₩9,540₩9,200₩19,000
Market cap₩106B₩109B₩129B₩124B₩256B
P/E8.4×6.1×12.2×—37.5×
P/B0.7×0.8×1.0×1.0×3.4×
P/S0.2×0.2×0.3×0.3×0.7×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Gaeasoft11.2×1.1×0.3×—0.0%
Hyundai Autoever46.8×4.7×2.0×—0.6%
Krafton10.0×1.2×1.9×—1.2%
NC6.9×1.2×2.0×8.3×0.6%
Netmarble7.1×0.5×1.0×—2.6%
PearlAbyss7.9×2.0×3.0×5.1×0.0%
Shift UP9.0×1.8×7.1×—0.0%
Similar companies (median)8.4×1.5×2.0×6.7×0.6%

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

Also known as: Gaeasoft / 지어소프트 / 051160 / KRX:051160

Source: KRX statistical information