KOSDAQ · 066590 · Auto parts · ₩066590

Smotronic스모트로닉

066590 · KOSDAQ · ₩066590 · 스모트로닉

₩2,095▲ ₩50 (2.44%)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

₩436

vs the current price (₩2,095)

Enterprise value: ₩5.5B
Equity value: ₩17B
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 79% 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 ₩2,095, the model needs an operating margin of 2.3% every year (it uses 1.1%).
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: ₩436; −79.2%
Bull: ₩4,357; +108.0%

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 (1.1%).

Revenue growth

Revenue growth, year 11.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (1.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 21.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (1.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 32%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (1.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (1.1% 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 (1.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.1%
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.
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 & amortisation4.6%
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).
Capital spending5.8%
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).
Working capital4.8%
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 rate4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
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 0.14, 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)5.61%
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): ₩387B
Net debt (borrowings and leases − cash and deposits): −₩5.7B
+ Stakes and investments: ₩5.7B; Associates, long-term financial assets and deposits (book value)
Shares: 38,677,937
Share price: ₩2,095
Market cap: ₩81B

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	₩348B	₩354B	₩369B	₩391B	₩398B	₩406B	₩416B	₩428B
Growth	−2.5%	1.8%	4.1%	1.1%	1.6%	2.0%	2.5%	3.0%
EBIT	₩8.4B	₩9B	₩451M	₩4.3B	₩4.4B	₩4.5B	₩4.6B	₩4.7B
EBIT margin	2.4%	2.6%	0.1%	1.1%	1.1%	1.1%	1.1%	1.1%
After-tax EBIT	₩6.1B	₩6.6B	₩327M	₩3.1B	₩3.2B	₩3.2B	₩3.3B	₩3.4B
+ Depreciation	—	—	—	₩18B	₩18B	₩19B	₩19B	₩20B
− Capital spending	₩13B	₩20B	₩29B	₩23B	₩23B	₩24B	₩24B	₩25B
− Working capital	−₩18B	₩17B	₩13B	₩204M	₩301M	₩382M	₩487M	₩599M
Free cash flow	—	—	—	−₩1.8B	−₩1.9B	−₩2B	−₩2.2B	−₩2.3B
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	−₩1.7B	−₩1.6B	−₩1.6B	−₩1.6B	−₩1.6B

Terminal value ₩20B, worth ₩14B today: 250% 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 ₩2,225 a share)Now 0.94×	₩2,5191.13×	₩3,0491.37×	₩4,0691.83×

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%	₩516	₩523	₩531	₩540	₩552
6.9%	₩473	₩475	₩478	₩481	₩485
7.4%	₩437	₩437	₩436	₩435	₩433
7.9%	₩406	₩404	₩402	₩398	₩393
8.4%	₩381	₩377	₩373	₩368	₩362

Now (TTM)

Market cap: ₩81B
Enterprise value: ₩75B
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	₩3,020	₩2,545	₩2,380	₩4,800
Market cap	₩93B	₩117B	₩98B	₩92B	₩186B
P/E	—	15.9×	9.6×	—	—
P/B	1.2×	1.3×	1.2×	1.3×	2.3×
P/S	0.3×	0.3×	0.3×	0.3×	0.6×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Smotronic	—	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: Smotronic / 스모트로닉 / 066590 / KRX:066590

Source: KRX statistical information