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Taeyang

053620 · KOSDAQ · ₩053620 · 태양

₩6,750▼ ₩80 (1.17%)End-of-day · Oct 30, 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

₩17,307

vs the current price (₩6,750)

Enterprise value
₩48B
Equity value
₩149B
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 156% 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 ₩6,750, the model needs an operating margin of −2.2% every year (it uses 3.0%).
  • 65% 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 3.5× against a typical 7.6× 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
₩12,992
+92.5%
Base
₩17,307
+156.4%
Bull
₩25,161
+272.8%

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 (3.0%).

Revenue growth

  • -7%

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

    Default: the last 3 years' revenue growth (-7% 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 (-7% a year, annual reports), fading to 3% by year 5.

  • -2%

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

    Default: the last 3 years' revenue growth (-7% a year, annual reports), fading to 3% by year 5.

  • 0.5%

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

    Default: the last 3 years' revenue growth (-7% 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 (-7% a year, annual reports), fading to 3% by year 5.

Business

  • 3%

    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.

  • 1%

    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).

  • 1.2%

    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).

  • 5.6%

    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.

  • 4.01%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 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 0.14, 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.

  • 5.51%

    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)
₩151B
Net debt (borrowings and leases − cash and deposits)
−₩89B
+ Stakes and investments
₩12B
Associates, long-term financial assets and deposits (book value)
Shares
8,600,000
Share price
₩6,750
Market cap
₩58B

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₩157B₩152B₩140B₩141B₩135B₩132B₩133B₩136B
Growth−9.9%−3.0%−7.8%−7.0%−4.5%−2.0%0.5%3.0%
EBIT₩6.5B₩2.2B₩2.4B₩4.2B₩4B₩4B₩4B₩4.1B
EBIT margin4.2%1.4%1.7%3.0%3.0%3.0%3.0%3.0%
After-tax EBIT₩4.7B₩1.6B₩1.7B₩3.1B₩2.9B₩2.9B₩2.9B₩3B
+ Depreciation———₩1.4B₩1.3B₩1.3B₩1.3B₩1.4B
− Capital spending₩2B₩2.2B₩1.4B₩1.7B₩1.6B₩1.6B₩1.6B₩1.6B
− Working capital−₩821M−₩16M₩9B−₩594M−₩355M−₩151M₩37M₩223M
Free cash flow———₩3.4B₩3B₩2.8B₩2.6B₩2.5B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩3.1B₩2.6B₩2.2B₩1.9B₩1.7B

Terminal value ₩51B, worth ₩36B 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 ₩23,779 a share)Now 0.28×₩6,8470.29×₩8,1910.34×₩10,5610.44×
Price / earnings (last 12 months: ₩1,931 a share)Now 3.49×₩6,9203.58×₩14,6137.57×₩26,80513.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,420 a share)Now 2.79×₩8,6713.58×₩18,3107.57×₩33,58713.9×

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%₩17,625₩18,047₩18,567₩19,222₩20,074
6.8%₩17,125₩17,463₩17,871₩18,373₩19,006
7.3%₩16,705₩16,980₩17,307₩17,700₩18,185
7.8%₩16,346₩16,574₩16,839₩17,154₩17,534
8.3%₩16,037₩16,227₩16,446₩16,702₩17,006

Now (TTM)

Market cap
₩58B
Enterprise value
−₩33B
P/E
3.5×
P/B
0.3×
P/S
0.4×
EV/EBITDA
—
Dividend yield
5.9%

Over time (at each year end)

20252024202320222021
Price₩6,510₩6,250₩7,620₩7,950₩8,980
Market cap₩56B₩54B₩66B₩68B₩77B
P/E4.7×6.5×9.0×10.4×16.1×
P/B0.3×0.3×0.4×0.4×0.5×
P/S0.4×0.4×0.4×0.4×0.5×
EV/EBITDA—————
Dividend yield6.1%3.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Taeyang3.5×0.3×0.4×—5.9%
CS Wind373.3×1.3×0.6×—2.6%
Hankuk Carbon7.6×1.2×0.9×—2.1%
Taewoong60.7×0.7×1.2×19.5×0.0%
YG-15.1×0.8×0.5×—1.9%
Bosung Power Technology18.2×2.1×1.8×8.2×0.0%
HT Robotics39.3×2.8×1.9×—0.0%
Similar companies (median)28.7×1.2×1.0×13.8×0.9%

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

Also known as: Taeyang / 태양 / 053620 / KRX:053620

Source: KRX statistical information