KOSDAQ · 065500 · Auto parts · ₩065500

Orient Precision Industries오리엔트정공

065500 · KOSDAQ · ₩065500 · 오리엔트정공

₩878▼ ₩5 (0.57%)End-of-day · Oct 28, 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

With these assumptions the model gives no positive value.

Enterprise value: −₩13B
Equity value: −₩40B
WACC: 5.6%

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

To match today's price of ₩878, the model needs an operating margin of 2.3% every year (it uses 0.3%).
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: ₩1,856; +111.4%

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 (0.3%).

Revenue growth

Revenue growth, year 15.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 24.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 34.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.4% 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 (5.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin0.3%
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.
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 & amortisation2.8%
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 spending3.5%
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).
Working capital5.6%
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

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 rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta0.6
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 0.11, 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)5.58%
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): ₩157B
Net debt (borrowings and leases − cash and deposits): ₩35B
+ Stakes and investments: ₩8.1B; Associates, long-term financial assets and deposits (book value)
Shares: 35,742,912
Share price: ₩878
Market cap: ₩31B

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	₩163B	₩173B	₩157B	₩166B	₩174B	₩181B	₩188B	₩193B
Growth	21.2%	6.5%	−9.4%	5.4%	4.8%	4.2%	3.6%	3.0%
EBIT	₩2B	₩1.2B	₩912M	₩498M	₩522M	₩544M	₩563M	₩580M
EBIT margin	1.2%	0.7%	0.6%	0.3%	0.3%	0.3%	0.3%	0.3%
After-tax EBIT	₩1.4B	₩886M	₩662M	₩361M	₩378M	₩394M	₩408M	₩420M
+ Depreciation	—	—	—	₩4.6B	₩4.9B	₩5.1B	₩5.3B	₩5.4B
− Capital spending	₩5.5B	₩5.6B	₩6B	₩5.8B	₩6.1B	₩6.3B	₩6.6B	₩6.8B
− Working capital	−₩13B	₩3.1B	₩499M	₩476M	₩446M	₩409M	₩365M	₩315M
Free cash flow	—	—	—	−₩1.3B	−₩1.3B	−₩1.3B	−₩1.3B	−₩1.2B
Discount factor	—	—	—	0.947	0.896	0.849	0.804	0.761
Present value	—	—	—	−₩1.2B	−₩1.2B	−₩1.1B	−₩1B	−₩950M

Terminal value −₩9.5B, worth −₩7.2B today: 57% 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 ₩945 a share)Now 0.93×	₩8780.93×	₩1,1881.26×	₩3,5143.72×

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%
4.6%	—	—	—	—	—
5.1%	—	—	—	—	—
5.6%	—	—	—	—	—
6.1%	—	—	—	—	—
6.6%	—	—	—	—	—

Now (TTM)

Market cap: ₩31B
Enterprise value: ₩63B
P/E: —
P/B: 0.9×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,400	₩6,630	₩1,204	₩1,235	₩2,745
Market cap	₩86B	₩237B	₩43B	₩44B	₩98B
P/E	47.7×	—	—	—	—
P/B	2.2×	6.2×	1.1×	1.0×	3.1×
P/S	0.5×	1.4×	0.3×	0.3×	0.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Orient Precision Industries	—	0.9×	0.2×	—	0.0%
Hyundai Mobis	8.7×	0.6×	0.5×	—	1.8%
SL	6.1×	0.9×	0.4×	3.7×	0.0%
HL Mando	10.7×	0.6×	0.2×	—	1.9%
Samhyun	—	13.4×	18.9×	—	0.0%
Hyundai WIA	19.3×	0.4×	0.2×	—	2.4%
SNT Dynamics	13.4×	0.7×	0.9×	—	6.8%
Similar companies (median)	10.7×	0.7×	0.5×	3.7×	1.9%

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

Also known as: Orient Precision Industries / 오리엔트정공 / 065500 / KRX:065500

Source: KRX statistical information