KOSDAQ · 053160 · Electrical equipment · ₩053160

FreeMs프리엠스

053160 · KOSDAQ · ₩053160 · 프리엠스

₩8,130▼ ₩80 (0.97%)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

₩2,166

vs the current price (₩8,130)

Enterprise value: ₩2.1M
Equity value: ₩13B
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 73% 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 ₩8,130, the model needs an operating margin of 16.3% every year (it uses 0.8%).
Margins ranged from −13.3% to 3.2% 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.
100% 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 36.9× against a typical 36.9× 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: ₩1,782; −78.1%
Base: ₩2,166; −73.4%
Bull: ₩3,019; −62.9%

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 1-7.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-5.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-2.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.9% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-7.9% 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 (-7.9% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin0.8%
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 & amortisation0.7%
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).
Capital spending1.6%
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).
Working capital40%
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 0.25, 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): ₩21B
Net debt (borrowings and leases − cash and deposits): −₩13B
Shares: 6,000,000
Share price: ₩8,130
Market cap: ₩49B

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	₩23B	₩18B	₩23B	₩19B	₩18B	₩18B	₩18B	₩18B
Growth	−22.6%	−22.9%	30.7%	−7.9%	−5.2%	−2.5%	0.3%	3.0%
EBIT	−₩12M	−₩2.3B	₩388M	₩154M	₩146M	₩143M	₩143M	₩147M
EBIT margin	−0.1%	−13.3%	1.7%	0.8%	0.8%	0.8%	0.8%	0.8%
After-tax EBIT	−₩8.9M	−₩1.7B	₩281M	₩112M	₩106M	₩103M	₩104M	₩107M
+ Depreciation	₩216M	₩180M	₩66M	₩135M	₩128M	₩125M	₩125M	₩129M
− Capital spending	₩192M	₩513M	₩229M	₩309M	₩293M	₩285M	₩286M	₩295M
− Working capital	−₩6.6B	−₩7.1B	₩8.5B	−₩662M	−₩401M	−₩183M	₩21M	₩215M
Free cash flow	₩6.6B	₩5.1B	−₩8.4B	₩600M	₩343M	₩126M	−₩79M	−₩274M
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	₩559M	₩297M	₩102M	−₩59M	−₩191M

Terminal value −₩1B, worth −₩705M today: -33338% 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 ₩11,945 a share)Now 0.68×	₩8,0830.68×	₩11,1140.93×	₩16,8251.41×
Price / earnings (last 12 months: ₩220 a share)Now 36.9×	₩6,31528.6×	₩8,13036.9×	₩15,16868.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,084 a share)Now 7.50×	₩31,04928.6×	₩39,97536.9×	₩74,58068.8×

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%	₩2,330	₩2,242	₩2,133	₩1,995	₩1,815
6.9%	₩2,325	₩2,247	₩2,152	₩2,034	₩1,884
7.4%	₩2,321	₩2,251	₩2,166	₩2,064	₩1,937
7.9%	₩2,317	₩2,254	₩2,179	₩2,089	₩1,980
8.4%	₩2,314	₩2,256	₩2,189	₩2,109	₩2,014

Now (TTM)

Market cap: ₩49B
Enterprise value: ₩36B
P/E: 36.9×
P/B: 0.7×
P/S: 2.3×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩6,790	₩13,610	₩13,900	₩6,780	₩19,450
Market cap	₩41B	₩82B	₩83B	₩41B	₩117B
P/E	45.3×	—	113.6×	30.4×	95.9×
P/B	0.6×	1.5×	1.4×	0.7×	2.0×
P/S	1.8×	4.6×	3.6×	1.4×	4.6×
EV/EBITDA	61.1×	—	334.1×	37.3×	114.1×
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
FreeMs	36.9×	0.7×	2.3×	—	0.0%
LS Electric	63.5×	11.6×	4.3×	39.3×	0.0%
Hyosung Heavy Industries	31.8×	7.2×	2.9×	—	0.4%
HD Hyundai Electric	19.6×	7.4×	3.8×	—	0.0%
Gaon Cable	117.0×	14.2×	2.6×	61.1×	0.0%
Sanil Electric	27.9×	7.6×	8.5×	—	0.8%
Taihan Cable & Solution	—	2.3×	1.0×	—	0.0%
Similar companies (median)	31.8×	7.5×	3.4×	50.2×	0.0%

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

Also known as: FreeMs / 프리엠스 / 053160 / KRX:053160

Source: KRX statistical information