Ask Warren

YW

051390 · KOSDAQ · ₩051390 · YW

₩3,765▲ ₩30 (0.80%)End-of-day · Oct 28, 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

₩5,480

vs the current price (₩3,765)

Enterprise value
₩36B
Equity value
₩62B
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 46% 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 ₩3,765, the model needs an operating margin of 12.8% every year (it uses 26.5%).
  • Or revenue growth −19.6 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 15.1% to 34.9% 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.
  • Today's P/E is 8.8× against a typical 9.9× 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
₩4,515
+19.9%
Base
₩5,480
+45.6%
Bull
₩7,061
+87.5%

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 (26.5%).

Revenue growth

  • -6.6%

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

    Default: the last 3 years' revenue growth (-6.6% a year, annual reports), fading to 3% by year 5.

  • -4.2%

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

    Default: the last 3 years' revenue growth (-6.6% a year, annual reports), fading to 3% by year 5.

  • -1.8%

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

    Default: the last 3 years' revenue growth (-6.6% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-6.6% 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 (-6.6% a year, annual reports), fading to 3% by year 5.

Business

  • 26.5%

    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.

  • 2.4%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • 40%

    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.

  • 4.11%

    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.

  • 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.

  • 5.61%

    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)
₩13B
Net debt (borrowings and leases − cash and deposits)
−₩26B
+ Stakes and investments
₩150M
Associates, long-term financial assets and deposits (book value)
Shares
11,355,368
Share price
₩3,765
Market cap
₩43B

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₩37B₩17B₩17B₩12B₩11B₩11B₩11B₩11B
Growth82.3%−55.3%0.0%−6.6%−4.2%−1.8%0.6%3.0%
EBIT₩6.5B₩5.4B₩5.8B₩3.1B₩3B₩2.9B₩2.9B₩3B
EBIT margin17.5%32.9%34.9%26.5%26.5%26.5%26.5%26.5%
After-tax EBIT₩4.7B₩3.9B₩4.2B₩2.3B₩2.2B₩2.1B₩2.1B₩2.2B
+ Depreciation₩491M₩493M₩495M₩281M₩270M₩265M₩266M₩274M
− Capital spending———₩469M₩449M₩441M₩444M₩457M
− Working capital−₩9.9B₩6.4B−₩9B−₩331M−₩197M−₩81M₩26M₩133M
Free cash flow———₩2.4B₩2.2B₩2B₩1.9B₩1.9B
Discount factor———0.9310.8670.8070.7510.700
Present value———₩2.2B₩1.9B₩1.6B₩1.4B₩1.3B

Terminal value ₩39B, worth ₩27B today: 76% 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 ₩7,427 a share)Now 0.51×₩3,7990.51×₩4,0090.54×₩4,5920.62×
Price / earnings (last 12 months: ₩428 a share)Now 8.79×₩3,3947.92×₩4,2399.89×₩6,70815.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩360 a share)Now 10.5×₩2,8507.92×₩3,5599.89×₩5,63315.7×

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%₩5,646₩5,890₩6,189₩6,565₩7,050
6.9%₩5,365₩5,562₩5,799₩6,089₩6,453
7.4%₩5,128₩5,289₩5,480₩5,710₩5,991
7.9%₩4,926₩5,059₩5,216₩5,401₩5,623
8.4%₩4,750₩4,863₩4,993₩5,144₩5,324

Now (TTM)

Market cap
₩43B
Enterprise value
₩17B
P/E
8.8×
P/B
0.5×
P/S
3.4×
EV/EBITDA
2.9×
Dividend yield
6.1%

Over time (at each year end)

20252024202320222021
Price₩3,920₩3,615₩3,820₩3,300₩4,210
Market cap₩45B₩41B₩43B₩37B₩48B
P/E8.8×9.6×8.1×12.4×18.0×
P/B0.5×0.5×0.5×0.5×0.6×
P/S2.7×2.5×1.2×1.8×3.2×
EV/EBITDA2.1×4.3×4.5×10.2×13.0×
Dividend yield5.9%5.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
YW8.8×0.5×3.4×2.9×6.1%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.6×1.3×0.3×—3.7%
ISC45.3×6.0×12.6×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies18.9×1.6×5.1×—4.2%
Shinsegae14.4×0.5×0.3×—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: YW / 051390 / KRX:051390

Source: KRX statistical information