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Rftech

061040 · KOSDAQ · ₩061040 · 알에프텍

₩6,770▼ ₩10 (0.15%)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

₩2,407

vs the current price (₩6,770)

Enterprise value
−₩38B
Equity value
₩22B
WACC
10.4%

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 64% 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 ₩6,770, the model needs an operating margin of 1.5% every year (it uses −0.8%).
  • Margins ranged from −9.5% to 5.8% 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.
  • 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.

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
₩107
−98.4%
Base
₩2,407
−64.4%
Bull
₩6,425
−5.1%

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 (−0.8%).

Revenue growth

  • -9.6%

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

    Default: the last 3 years' revenue growth (-9.6% a year, annual reports), fading to 3% by year 5.

  • -6.5%

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

    Default: the last 3 years' revenue growth (-9.6% a year, annual reports), fading to 3% by year 5.

  • -3.3%

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

    Default: the last 3 years' revenue growth (-9.6% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-9.6% 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 (-9.6% a year, annual reports), fading to 3% by year 5.

Business

  • -0.8%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 6.7%

    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).

  • 8.3%

    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).

  • -1.9%

    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.

  • 1.16

    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 1.24, 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)
₩257B
Net debt (borrowings and leases − cash and deposits)
−₩39B
+ Stakes and investments
₩20B
Associates, long-term financial assets and deposits (book value)
Shares
9,048,223
Share price
₩6,770
Market cap
₩61B

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₩314B₩358B₩266B₩232B₩217B₩210B₩210B₩216B
Growth−12.8%14.0%−25.8%−9.6%−6.5%−3.3%−0.2%3.0%
EBIT₩5B₩1.8B−₩25B−₩1.9B−₩1.7B−₩1.7B−₩1.7B−₩1.7B
EBIT margin1.6%0.5%−9.5%−0.8%−0.8%−0.8%−0.8%−0.8%
After-tax EBIT₩3.7B₩1.3B−₩18B−₩1.3B−₩1.3B−₩1.2B−₩1.2B−₩1.3B
+ Depreciation———₩16B₩15B₩14B₩14B₩14B
− Capital spending₩36B₩32B₩12B₩19B₩18B₩17B₩17B₩18B
− Working capital−₩24B−₩62B₩42B₩469M₩287M₩136M₩8M−₩119M
Free cash flow———−₩5.5B−₩5B−₩4.7B−₩4.6B−₩4.6B
Discount factor———0.9060.8210.7430.6730.610
Present value———−₩5B−₩4.1B−₩3.5B−₩3.1B−₩2.8B

Terminal value −₩32B, worth −₩19B today: 51% 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 ₩22,554 a share)Now 0.30×₩8,9010.39×₩16,5830.74×₩25,9351.15×

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%
9.4%₩2,243₩2,107₩1,952₩1,775₩1,571
9.9%₩2,444₩2,326₩2,193₩2,043₩1,870
10.4%₩2,625₩2,522₩2,407₩2,278₩2,131
10.9%₩2,788₩2,698₩2,598₩2,486₩2,360
11.4%₩2,936₩2,857₩2,769₩2,672₩2,563

Now (TTM)

Market cap
₩61B
Enterprise value
₩21B
P/E
—
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩9,985₩19,735₩19,585₩26,863₩30,415
Market cap₩90B₩179B₩177B₩243B₩275B
P/E——43.8×20.4×15.7×
P/B0.5×0.8×0.8×1.1×1.3×
P/S0.3×0.5×0.6×0.7×0.8×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Rftech—0.3×0.2×—0.0%
Samsung Electronics8.8×2.3×2.7×—0.7%
LG Electronics23.6×0.9×0.3×—0.9%
Hanwha Vision21.8×2.7×1.4×—0.0%
RFHIC39.7×3.5×6.5×—0.8%
KMW—4.9×7.9×—0.0%
Intellian Technologies12.9×2.0×1.6×—0.4%
Similar companies (median)21.8×2.5×2.1×—0.6%

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

Also known as: Rftech / 알에프텍 / 061040 / KRX:061040

Source: KRX statistical information