KOSDAQ · 065710 · Electrical equipment · ₩065710

Seoho Electric서호전기

065710 · KOSDAQ · ₩065710 · 서호전기

₩44,750▲ ₩200 (0.45%)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

₩95,916

vs the current price (₩44,750)

Enterprise value: ₩433B
Equity value: ₩494B
WACC: 7.4%

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 114% 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 ₩44,750, the model needs an operating margin of 9.2% every year (it uses 20.5%).
Or revenue growth −24.6 points a year higher than assumed in each of the 5 years.
Margins ranged from 3.5% to 21.7% 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 10.3× against a typical 9.7× 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: ₩67,980; +51.9%
Base: ₩95,916; +114.3%
Bull: ₩141,625; +216.5%

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 (20.5%).

Revenue growth

Revenue growth, year 124.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (24.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 219.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (24.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 313.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (24.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 48.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (24.7% 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 (24.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin20.5%
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 & amortisation0.5%
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).
Capital spending0%
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 capital35.5%
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 rate4.08%
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 0.19, 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): ₩101B
Net debt (borrowings and leases − cash and deposits): −₩62B
+ Stakes and investments: ₩187M; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩1.2B
Shares: 5,150,000
Share price: ₩44,750
Market cap: ₩230B

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	₩66B	₩46B	₩117B	₩126B	₩151B	₩172B	₩186B	₩192B
Growth	10.0%	−29.8%	151.0%	24.7%	19.3%	13.8%	8.4%	3.0%
EBIT	₩13B	₩1.6B	₩25B	₩26B	₩31B	₩35B	₩38B	₩39B
EBIT margin	19.6%	3.5%	21.7%	20.5%	20.5%	20.5%	20.5%	20.5%
After-tax EBIT	₩9.4B	₩1.2B	₩18B	₩19B	₩22B	₩26B	₩28B	₩28B
+ Depreciation	₩338M	—	—	₩632M	₩754M	₩858M	₩930M	₩958M
− Capital spending	₩10M	—	₩77M	₩0	₩0	₩0	₩0	₩0
− Working capital	₩7.8B	₩44M	−₩3.8B	₩8.9B	₩8.7B	₩7.4B	₩5.1B	₩2B
Free cash flow	₩1.9B	—	—	₩11B	₩15B	₩19B	₩23B	₩27B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	₩9.8B	₩13B	₩15B	₩18B	₩19B

Terminal value ₩512B, worth ₩359B 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:

	Low	Typical	High
Price / book (book value ₩20,513 a share)Now 2.18×	₩21,6071.05×	₩24,6641.20×	₩49,9232.43×
Price / earnings (last 12 months: ₩4,349 a share)Now 10.3×	₩23,7895.47×	₩42,3279.73×	₩57,55313.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,058 a share)Now 11.0×	₩22,1995.47×	₩39,4969.73×	₩53,70413.2×

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%
6.4%	₩100,815	₩107,802	₩116,373	₩127,140	₩141,078
6.9%	₩92,712	₩98,331	₩105,092	₩113,385	₩123,803
7.4%	₩85,888	₩90,479	₩95,916	₩102,457	₩110,481
7.9%	₩80,063	₩83,867	₩88,309	₩93,568	₩99,896
8.4%	₩75,036	₩78,222	₩81,901	₩86,198	₩91,285

Now (TTM)

Market cap: ₩230B
Enterprise value: ₩169B
P/E: 10.3×
P/B: 2.2×
P/S: 2.3×
EV/EBITDA: —
Dividend yield: 13.4%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩50,900	₩20,650	₩19,030	₩17,800	₩20,900
Market cap	₩262B	₩106B	₩98B	₩92B	₩108B
P/E	12.6×	9.2×	6.3×	8.1×	6.2×
P/B	3.2×	1.2×	1.1×	1.0×	1.3×
P/S	2.2×	2.3×	1.5×	1.5×	1.4×
EV/EBITDA	—	—	5.6×	5.0×	6.1×
Dividend yield	11.8%	12.1%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Seoho Electric	10.3×	2.2×	2.3×	—	13.4%
LS Electric	63.5×	11.6×	4.3×	39.3×	0.0%
Hyosung Heavy Industries	31.8×	7.2×	2.9×	—	0.4%
HD Hyundai Electric	19.6×	7.4×	3.8×	—	0.0%
Gaon Cable	117.0×	14.2×	2.6×	61.1×	0.0%
Sanil Electric	27.9×	7.6×	8.5×	—	0.8%
Taihan Cable & Solution	—	2.3×	1.0×	—	0.0%
Similar companies (median)	31.8×	7.5×	3.4×	50.2×	0.0%

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

Also known as: Seoho Electric / 서호전기 / 065710 / KRX:065710

Source: KRX statistical information