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053050 · KOSDAQ · ₩053050 · 지에스이

₩1,799▲ ₩14 (0.78%)End-of-day · Oct 28, 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

₩536

vs the current price (₩1,799)

Enterprise value
₩42B
Equity value
₩16B
WACC
6.3%

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 70% 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 ₩1,799, the model needs an operating margin of 4.7% every year (it uses 3.4%).
  • Or revenue growth +13.6 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.
  • Today's P/E is 11.9× against a typical 18.8× 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
₩536
−70.2%
Bull
₩4,420
+145.7%

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 (3.4%).

Revenue growth

  • -0.5%

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

    Default: the last 3 years' revenue growth (-0.5% a year, annual reports), fading to 3% by year 5.

  • 0.4%

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

    Default: the last 3 years' revenue growth (-0.5% a year, annual reports), fading to 3% by year 5.

  • 1.3%

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

    Default: the last 3 years' revenue growth (-0.5% a year, annual reports), fading to 3% by year 5.

  • 2.1%

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

    Default: the last 3 years' revenue growth (-0.5% 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 (-0.5% a year, annual reports), fading to 3% by year 5.

Business

  • 3.4%

    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.

  • 4.6%

    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).

  • 9.6%

    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).

  • 5%

    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 -0.09, 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)
₩173B
Net debt (borrowings and leases − cash and deposits)
₩26B
Shares
29,987,597
Share price
₩1,799
Market cap
₩54B

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₩169B₩156B₩170B₩172B₩173B₩175B₩179B₩184B
Growth−2.2%−7.8%9.3%−0.5%0.4%1.3%2.1%3.0%
EBIT₩4.4B₩4.9B₩7.3B₩5.9B₩5.9B₩6B₩6.1B₩6.3B
EBIT margin2.6%3.2%4.3%3.4%3.4%3.4%3.4%3.4%
After-tax EBIT₩3.2B₩3.6B₩5.3B₩4.2B₩4.3B₩4.3B₩4.4B₩4.5B
+ Depreciation₩7.3B₩7.6B₩7.9B₩7.9B₩8B₩8.1B₩8.2B₩8.5B
− Capital spending₩19B₩15B₩14B₩17B₩17B₩17B₩17B₩18B
− Working capital₩9.7B−₩5.1B−₩17B−₩43M₩34M₩112M₩184M₩268M
Free cash flow−₩18B₩940M₩16B−₩4.3B−₩4.4B−₩4.6B−₩4.7B−₩4.9B
Discount factor———0.9400.8840.8320.7820.736
Present value———−₩4.1B−₩3.9B−₩3.8B−₩3.7B−₩3.6B

Terminal value ₩83B, worth ₩61B today: 146% 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 ₩3,430 a share)Now 0.52×₩2,4690.72×₩3,7431.09×₩5,9131.72×
Price / earnings (last 12 months: ₩151 a share)Now 11.9×₩2,42316.1×₩2,84218.8×₩4,46429.6×

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%
5.3%₩651₩913₩1,254₩1,714₩2,371
5.8%₩391₩593₩846₩1,176₩1,621
6.3%₩183₩341₩536₩782₩1,100
6.8%₩13₩140₩293₩482₩719
7.3%——₩98₩246₩429

Now (TTM)

Market cap
₩54B
Enterprise value
₩79B
P/E
11.9×
P/B
0.5×
P/S
0.3×
EV/EBITDA
5.1×
Dividend yield
2.2%

Over time (at each year end)

20252024202320222021
Price₩2,335₩3,270₩3,330₩3,815₩3,055
Market cap₩70B₩98B₩100B₩114B₩92B
P/E18.1×27.5×17.9×19.4×22.5×
P/B0.7×1.0×1.1×1.3×1.1×
P/S0.4×0.6×0.6×0.7×0.7×
EV/EBITDA6.9×11.4×10.3×11.1×9.5×
Dividend yield1.7%1.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
GSE11.9×0.5×0.3×5.1×2.2%
Korea Electric Power2.3×0.4×0.2×5.7×5.4%
Korea Gas6.0×0.3×0.1×8.6×3.1%
Korea District Heating2.3×0.3×0.2×4.8×8.6%
SGC Energy—0.7×0.2×—3.9%
Samchully3.2×0.2×0.1×—2.5%
Seoul City Gas11.4×0.2×0.1×—0.0%
Similar companies (median)3.2×0.3×0.2×5.7×3.5%

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

Also known as: GSE / 지에스이 / 053050 / KRX:053050

Source: KRX statistical information