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LB Semicon

061970 · KOSDAQ · ₩061970 · LB세미콘

₩3,205▼ ₩70 (2.14%)End-of-day · Oct 29, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩241B
Equity value
−₩498B
WACC
6.5%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩3,205, the model needs an operating margin of 9.0% every year (it uses −0.1%).
  • Margins ranged from −8.3% to 10.8% 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
—
Base
—
Bull
—

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 (−0.1%).

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%

    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

  • -0.1%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

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

  • 20%

    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).

  • 21.8%

    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).

  • 10.7%

    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.

  • 0.94

    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 0.91, 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)
₩526B
Net debt (borrowings and leases − cash and deposits)
₩247B
+ Stakes and investments
₩11M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩11B
Shares
70,083,006
Share price
₩3,205
Market cap
₩225B

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₩417B₩451B₩480B₩511B₩504B₩504B₩512B₩527B
Growth−20.5%8.2%6.4%−2.9%−1.4%0.0%1.5%3.0%
EBIT−₩13B−₩19B−₩40B−₩511M−₩504M−₩504M−₩512M−₩527M
EBIT margin−3.0%−4.2%−8.3%−0.1%−0.1%−0.1%−0.1%−0.1%
After-tax EBIT−₩9.2B−₩14B−₩29B−₩371M−₩365M−₩365M−₩371M−₩382M
+ Depreciation₩88B₩90B₩91B₩102B₩101B₩101B₩102B₩105B
− Capital spending₩78B₩158B₩55B₩111B₩110B₩110B₩112B₩115B
− Working capital−₩31B₩28B₩36B−₩1.6B−₩766M₩0₩809M₩1.6B
Free cash flow₩32B−₩110B−₩29B−₩7.9B−₩8.7B−₩9.4B−₩10B−₩12B
Discount factor———0.9390.8820.8290.7780.731
Present value———−₩7.5B−₩7.7B−₩7.8B−₩8.1B−₩8.4B

Terminal value −₩275B, worth −₩201B today: 84% 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 ₩4,066 a share)Now 0.79×₩3,7040.91×₩6,7131.65×₩13,5223.33×

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%
5.5%—————
6.0%—————
6.5%—————
7.0%—————
7.5%—————

Now (TTM)

Market cap
₩225B
Enterprise value
₩471B
P/E
—
P/B
0.8×
P/S
0.4×
EV/EBITDA
7.7×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,157₩3,406₩7,396₩6,305₩12,773
Market cap₩291B₩239B₩518B₩442B₩895B
P/E———11.0×27.5×
P/B1.1×1.0×2.1×1.6×3.9×
P/S0.6×0.5×1.2×0.8×1.8×
EV/EBITDA11.2×7.6×9.6×4.9×9.9×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
LB Semicon—0.8×0.4×7.7×0.0%
SK hynix6.9×4.2×5.9×—0.2%
DB HiTek12.5×1.8×2.8×—0.8%
Fadu—39.2×13.7×—0.0%
Hana Micron14.4×4.5×1.2×—0.2%
Jeju Semiconductor10.5×5.4×3.6×—0.0%
SFA Semicon—3.0×3.2×—0.0%
Similar companies (median)11.5×4.4×3.4×—0.1%

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

Also known as: LB Semicon / LB세미콘 / 061970 / KRX:061970

Source: KRX statistical information