KOSDAQ · 056190 · Machinery · ₩056190

SFA EngineeringSFA

056190 · KOSDAQ · ₩056190 · SFA

₩25,050▲ ₩500 (2.04%)End-of-day · Oct 27, 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

₩7,068

vs the current price (₩25,050)

Enterprise value: ₩784B
Equity value: ₩254B
WACC: 8.6%

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 72% 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 ₩25,050, the model needs an operating margin of 10.0% every year (it uses 6.1%).
Or revenue growth +24.6 points a year higher than assumed in each of the 5 years.
Margins ranged from −2.4% to 12.1% 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 14.7× against a typical 16.6× 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: —
Base: ₩7,068; −71.8%
Bull: ₩25,500; +1.8%

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 (6.1%).

Revenue growth

Revenue growth, year 1-1.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-0.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.1% 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 (-1.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin6.1%
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 & amortisation3.5%
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).
Capital spending4.4%
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 capital29.5%
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

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.
Beta0.81
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 0.72, 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): ₩1.5T
Net debt (borrowings and leases − cash and deposits): −₩80B
+ Stakes and investments: ₩14B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩624B
Shares: 35,908,760
Share price: ₩25,050
Market cap: ₩900B

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	₩1.9T	₩2T	₩1.6T	₩1.5T	₩1.5T	₩1.5T	₩1.6T	₩1.6T
Growth	11.7%	8.7%	−20.3%	−1.1%	−0.1%	1.0%	2.0%	3.0%
EBIT	₩85B	−₩48B	₩86B	₩93B	₩93B	₩94B	₩96B	₩99B
EBIT margin	4.5%	−2.4%	5.3%	6.1%	6.1%	6.1%	6.1%	6.1%
After-tax EBIT	₩62B	−₩35B	₩62B	₩68B	₩68B	₩68B	₩70B	₩72B
+ Depreciation	—	—	—	₩54B	₩54B	₩54B	₩55B	₩57B
− Capital spending	₩49B	₩97B	₩95B	₩67B	₩67B	₩68B	₩69B	₩71B
− Working capital	₩153B	−₩359B	₩54B	−₩5B	−₩452M	₩4.5B	₩9.1B	₩14B
Free cash flow	—	—	—	₩59B	₩54B	₩50B	₩46B	₩43B
Discount factor	—	—	—	0.921	0.848	0.782	0.720	0.663
Present value	—	—	—	₩54B	₩46B	₩39B	₩33B	₩29B

Terminal value ₩879B, worth ₩583B today: 74% 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 ₩26,007 a share)Now 0.96×	₩20,9990.81×	₩27,0631.04×	₩34,4391.32×
Price / earnings (last 12 months: ₩1,710 a share)Now 14.7×	₩20,79512.2×	₩28,39316.6×	₩40,87223.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,221 a share)Now 11.3×	₩27,01312.2×	₩36,88216.6×	₩53,09123.9×

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%
7.6%	₩9,237	₩10,065	₩11,033	₩12,184	₩13,576
8.1%	₩7,484	₩8,136	₩8,887	₩9,764	₩10,807
8.6%	₩5,965	₩6,481	₩7,068	₩7,745	₩8,535
9.1%	₩4,637	₩5,046	₩5,508	₩6,034	₩6,638
9.6%	₩3,464	₩3,791	₩4,155	₩4,565	₩5,031

Now (TTM)

Market cap: ₩900B
Enterprise value: ₩785B
P/E: 14.7×
P/B: 1.0×
P/S: 0.6×
EV/EBITDA: —
Dividend yield: 3.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩23,400	₩19,500	₩30,400	₩36,400	₩36,050
Market cap	₩840B	₩700B	₩1.1T	₩1.3T	₩1.3T
P/E	15.2×	—	27.3×	16.9×	11.1×
P/B	0.9×	0.8×	1.1×	1.2×	1.2×
P/S	0.5×	0.3×	0.6×	0.8×	0.8×
EV/EBITDA	—	—	—	—	—
Dividend yield	4.1%	1.4%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
SFA Engineering	14.7×	1.0×	0.6×	—	3.8%
Doosan Enerbility	208.4×	4.6×	2.1×	—	0.0%
Hanmi Semiconductor	82.2×	24.4×	33.1×	74.0×	0.4%
Jusung Engineering	1,121.0×	13.7×	36.0×	2,158.2×	0.0%
Rainbow Robotics	4,006.5×	51.3×	151.2×	—	0.0%
EO Technics	44.8×	6.5×	10.9×	—	0.0%
Doosan Bobcat	13,664.7×	914.4×	736.1×	—	3.5%
Similar companies (median)	664.7×	19.1×	34.5×	1,116.1×	0.0%

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

Also known as: SFA Engineering / SFA / 056190 / KRX:056190

Source: KRX statistical information