Ask Warren

Korea Cable T.V Chung-Buk System

066790 · KOSDAQ · ₩066790 · 씨씨에스

₩2,205 ₩0 (0.00%)End-of-day · Oct 27, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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
−₩24B
Equity value
−₩12B
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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩2,205, the model needs an operating margin of 38.4% every year (it uses −8.2%).
  • Margins ranged from −27.5% to 3.4% 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 (−8.2%).

Revenue growth

  • -1.9%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • -0.7%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 0.5%

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

    Default: the last 3 years' revenue growth (-1.9% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.9% 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 (-1.9% a year, annual reports), fading to 3% by year 5.

Business

  • -8.2%

    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.

  • 14.2%

    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).

  • 15.5%

    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).

  • 1.1%

    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.

  • 4.11%

    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.

  • 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 -0.02, 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.

  • 5.61%

    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)
₩18B
Net debt (borrowings and leases − cash and deposits)
−₩12B
Shares
44,152,039
Share price
₩2,205
Market cap
₩97B

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₩19B₩18B₩18B₩18B₩18B₩18B₩18B₩19B
Growth−0.7%−4.6%−0.4%−1.9%−0.7%0.5%1.8%3.0%
EBIT₩454M−₩850M−₩5B−₩1.5B−₩1.5B−₩1.5B−₩1.5B−₩1.5B
EBIT margin2.4%−4.6%−27.5%−8.2%−8.2%−8.2%−8.2%−8.2%
After-tax EBIT₩329M−₩616M−₩3.6B−₩1.1B−₩1.1B−₩1.1B−₩1.1B−₩1.1B
+ Depreciation₩2.9B₩2.6B₩2.4B₩2.6B₩2.5B₩2.6B₩2.6B₩2.7B
− Capital spending₩2.8B₩2.6B₩3.3B₩2.8B₩2.8B₩2.8B₩2.8B₩2.9B
− Working capital−₩8.6B−₩110M₩1.2B−₩3.8M−₩1.4M₩984,870₩3.6M₩6M
Free cash flow₩9.1B−₩469M−₩5.7B−₩1.3B−₩1.3B−₩1.3B−₩1.3B−₩1.4B
Discount factor———0.9310.8670.8070.7510.700
Present value———−₩1.2B−₩1.1B−₩1.1B−₩1,000M−₩961M

Terminal value −₩26B, worth −₩18B today: 77% 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 ₩518 a share)Now 4.26×₩7091.37×₩1,4352.77×₩2,6235.06×

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%—————
6.9%—————
7.4%—————
7.9%—————
8.4%—————

Now (TTM)

Market cap
₩97B
Enterprise value
₩84B
P/E
—
P/B
4.3×
P/S
5.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,205₩2,215₩2,932₩764₩1,026
Market cap₩97B₩98B₩129B₩34B₩45B
P/E——51.1×41.1×33.2×
P/B3.8×2.8×4.7×1.4×1.9×
P/S5.3×5.3×6.7×1.7×2.4×
EV/EBITDA—43.0×34.5×8.2×13.0×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Korea Cable T.V Chung-Buk System—4.3×5.3×—0.0%
CJ ENM—0.3×0.2×—0.0%
Seoul Broadcasting System107.3×0.2×0.2×—3.0%
KT Skylife78.4×0.3×0.2×—9.0%
Mega Study5.3×0.5×1.3×—10.1%
LG HelloVision—0.2×0.1×3.1×0.0%
The Korea Economic Broadcasting19.1×0.7×1.1×—3.1%
Similar companies (median)48.8×0.3×0.2×3.1×3.1%

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

Also known as: Korea Cable T.V Chung-Buk System / 씨씨에스 / 066790 / KRX:066790

Source: KRX statistical information