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Kukbo Design

066620 · KOSDAQ · ₩066620 · 국보디자인

₩22,650▼ ₩450 (1.95%)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

₩116,425

vs the current price (₩22,650)

Enterprise value
₩545B
Equity value
₩873B
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 414% 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 ₩22,650, the model needs an operating margin of −2.2% every year (it uses 8.8%).
  • 74% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
  • Today's P/E is 1.5× against a typical 4.0× 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
₩84,013
+270.9%
Base
₩116,425
+414.0%
Bull
₩170,814
+654.1%

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 (8.8%).

Revenue growth

  • 5.1%

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

    Default: the last 3 years' revenue growth (5.1% a year, annual reports), fading to 3% by year 5.

  • 4.6%

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

    Default: the last 3 years' revenue growth (5.1% a year, annual reports), fading to 3% by year 5.

  • 4%

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

    Default: the last 3 years' revenue growth (5.1% a year, annual reports), fading to 3% by year 5.

  • 3.5%

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

    Default: the last 3 years' revenue growth (5.1% 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 (5.1% a year, annual reports), fading to 3% by year 5.

Business

  • 8.8%

    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.

  • 3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so a typical level.

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • -9.8%

    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

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.08%

    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.

  • 0.6

    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 0.2, 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.

  • 5.58%

    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)
₩425B
Net debt (borrowings and leases − cash and deposits)
−₩328B
Shares
7,500,000
Share price
₩22,650
Market cap
₩170B

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₩401B₩422B₩439B₩447B₩468B₩486B₩503B₩519B
Growth6.0%5.1%4.1%5.1%4.6%4.0%3.5%3.0%
EBIT₩32B₩42B₩46B₩39B₩41B₩43B₩44B₩46B
EBIT margin8.1%9.9%10.4%8.8%8.8%8.8%8.8%8.8%
After-tax EBIT₩23B₩30B₩33B₩29B₩30B₩31B₩32B₩33B
+ Depreciation———₩13B₩14B₩15B₩15B₩16B
− Capital spending———₩18B₩19B₩19B₩20B₩21B
− Working capital−₩29B₩24B−₩36B−₩2.1B−₩2B−₩1.8B−₩1.7B−₩1.5B
Free cash flow———₩26B₩27B₩28B₩29B₩29B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩24B₩24B₩23B₩22B₩21B

Terminal value ₩617B, worth ₩432B today: 79% 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 ₩65,293 a share)Now 0.35×₩31,9810.49×₩35,0450.54×₩47,4170.73×
Price / earnings (last 12 months: ₩14,750 a share)Now 1.54×₩49,3393.34×₩58,8493.99×₩95,2776.46×
P/E on run-rate earnings (Q2 2026 × 4: ₩39,856 a share)Now 0.57×₩133,3173.34×₩159,0133.99×₩257,4456.46×

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%₩118,076₩124,943₩133,382₩144,003₩157,773
6.9%₩111,614₩117,244₩124,033₩132,377₩142,877
7.4%₩106,168₩110,858₩116,425₩123,137₩131,386
7.9%₩101,516₩105,477₩110,114₩115,618₩122,254
8.4%₩97,498₩100,880₩104,795₩109,381₩114,822

Now (TTM)

Market cap
₩170B
Enterprise value
−₩159B
P/E
1.5×
P/B
0.3×
P/S
0.4×
EV/EBITDA
—
Dividend yield
2.2%

Over time (at each year end)

20252024202320222021
Price₩23,400₩18,050₩14,270₩16,300₩21,000
Market cap₩176B₩135B₩107B₩122B₩158B
P/E4.4×3.3×3.9×5.9×8.1×
P/B0.5×0.5×0.5×0.8×0.7×
P/S0.4×0.3×0.3×0.3×0.5×
EV/EBITDA—————
Dividend yield2.1%2.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Kukbo Design1.5×0.3×0.4×—2.2%
Hyundai Engineering & Construction22.7×1.1×0.4×—0.9%
Daewoo Engineering & Construction—1.3×0.6×—0.0%
GS Engineering & Construction19.3×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.9×0.5×0.4×—2.8%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Kukbo Design / 국보디자인 / 066620 / KRX:066620

Source: KRX statistical information