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Systemand Application Technologies

060540 · KOSDAQ · ₩060540 · 에스에이티

₩1,148▼ ₩31 (2.63%)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

₩2,181

vs the current price (₩1,148)

Enterprise value
₩76B
Equity value
₩57B
WACC
6.0%

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 90% 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 ₩1,148, the model needs an operating margin of 2.7% every year (it uses 3.6%).
  • Or revenue growth −19.5 points a year higher than assumed in each of the 5 years.
  • 30% 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 12.8× 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
₩2,181
+90.0%
Bull
₩7,060
+515.0%

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 (3.6%).

Revenue growth

  • -2.9%

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

    Default: the last 3 years' revenue growth (-2.9% a year, annual reports), fading to 3% by year 5.

  • -1.4%

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

    Default: the last 3 years' revenue growth (-2.9% a year, annual reports), fading to 3% by year 5.

  • 0.1%

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

    Default: the last 3 years' revenue growth (-2.9% a year, annual reports), fading to 3% by year 5.

  • 1.5%

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

    Default: the last 3 years' revenue growth (-2.9% 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 (-2.9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.6%

    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.

  • 3.6%

    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).

  • 4.5%

    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).

  • 19.9%

    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 0.2, 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)
₩180B
Net debt (borrowings and leases − cash and deposits)
₩19B
+ Stakes and investments
₩100M
Associates, long-term financial assets and deposits (book value)
Shares
26,132,934
Share price
₩1,148
Market cap
₩30B

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₩152B₩155B₩160B₩175B₩172B₩172B₩175B₩180B
Growth−12.7%1.9%3.0%−2.9%−1.4%0.1%1.5%3.0%
EBIT₩4.7B₩3.4B₩3.9B₩6.3B₩6.2B₩6.2B₩6.3B₩6.5B
EBIT margin3.1%2.2%2.4%3.6%3.6%3.6%3.6%3.6%
After-tax EBIT₩3.4B₩2.4B₩2.8B₩4.6B₩4.5B₩4.5B₩4.6B₩4.7B
+ Depreciation———₩6.3B₩6.2B₩6.2B₩6.3B₩6.5B
− Capital spending₩17B₩1.4B₩1.8B₩7.9B₩7.7B₩7.8B₩7.9B₩8.1B
− Working capital−₩3.7B₩6B−₩1.6B−₩1B−₩486M₩34M₩514M₩1B
Free cash flow———₩4B₩3.4B₩2.9B₩2.5B₩2B
Discount factor———0.9430.8900.8390.7910.746
Present value———₩3.8B₩3.1B₩2.4B₩2B₩1.5B

Terminal value ₩85B, worth ₩63B today: 83% 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 ₩4,070 a share)Now 0.28×₩1,3640.34×₩2,1960.54×₩3,1370.77×
Price / earnings (last 12 months: ₩329 a share)Now 3.49×₩1,4224.32×₩4,20912.8×₩13,70141.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩284 a share)Now 4.04×₩1,2284.32×₩3,63412.8×₩11,83041.6×

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%
5.0%₩2,555₩2,810₩3,148₩3,618₩4,318
5.5%₩2,184₩2,365₩2,596₩2,901₩3,326
6.0%₩1,887₩2,018₩2,181₩2,388₩2,663
6.5%₩1,644₩1,741₩1,858₩2,003₩2,188
7.0%₩1,442₩1,514₩1,600₩1,703₩1,831

Now (TTM)

Market cap
₩30B
Enterprise value
₩47B
P/E
3.5×
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
4.4%

Over time (at each year end)

20252024202320222021
Price₩1,361₩1,535₩2,685₩2,060₩3,155
Market cap₩36B₩40B₩70B₩54B₩82B
P/E45.2×15.9×43.3×5.9×12.5×
P/B0.3×0.4×0.7×0.5×0.9×
P/S0.2×0.3×0.5×0.3×0.5×
EV/EBITDA—————
Dividend yield3.7%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Systemand Application Technologies3.5×0.3×0.2×—4.4%
TSE23.5×5.2×4.3×—0.2%
Kctech19.8×3.0×3.6×15.3×0.5%
Classys12.4×3.1×4.6×9.7×3.8%
Park Systems66.3×4.5×7.9×—0.2%
DI37.8×5.2×2.3×—0.6%
LivsMed—6.1×19.4×—0.0%
Similar companies (median)23.5×4.8×4.5×12.5×0.4%

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

Also known as: Systemand Application Technologies / 에스에이티 / 060540 / KRX:060540

Source: KRX statistical information