Ask Warren

Digital Daesung

068930 · KOSDAQ · ₩068930 · 디지털대성

₩9,190▼ ₩30 (0.33%)End-of-day · Oct 30, 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

₩19,721

vs the current price (₩9,190)

Enterprise value
₩530B
Equity value
₩533B
WACC
7.3%

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 115% 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 ₩9,190, the model needs an operating margin of 6.0% every year (it uses 12.6%).
  • Or revenue growth −15.6 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 6.8× against a typical 10.7× 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
₩12,112
+31.8%
Base
₩19,721
+114.6%
Bull
₩32,331
+251.8%

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 (12.6%).

Revenue growth

  • 6.4%

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

    Default: the last 3 years' revenue growth (6.4% a year, annual reports), fading to 3% by year 5.

  • 5.5%

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

    Default: the last 3 years' revenue growth (6.4% a year, annual reports), fading to 3% by year 5.

  • 4.7%

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

    Default: the last 3 years' revenue growth (6.4% a year, annual reports), fading to 3% by year 5.

  • 3.8%

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

    Default: the last 3 years' revenue growth (6.4% 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 (6.4% a year, annual reports), fading to 3% by year 5.

Business

  • 12.6%

    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.

  • 3.3%

    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).

  • 4.1%

    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).

  • -10%

    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.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 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.

  • 5.51%

    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)
₩273B
Net debt (borrowings and leases − cash and deposits)
−₩30B
+ Stakes and investments
₩6.8B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩33B
Shares
27,047,370
Share price
₩9,190
Market cap
₩249B

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₩212B₩218B₩254B₩290B₩306B₩321B₩333B₩343B
Growth0.3%2.9%16.6%6.4%5.5%4.7%3.8%3.0%
EBIT₩25B₩24B₩32B₩37B₩39B₩40B₩42B₩43B
EBIT margin11.8%10.9%12.4%12.6%12.6%12.6%12.6%12.6%
After-tax EBIT₩18B₩17B₩23B₩27B₩28B₩29B₩30B₩31B
+ Depreciation———₩9.6B₩10B₩11B₩11B₩11B
− Capital spending₩10B₩8.6B₩8.9B₩12B₩13B₩13B₩14B₩14B
− Working capital−₩10B−₩7.8B₩13B−₩1.7B−₩1.6B−₩1.4B−₩1.2B−₩999M
Free cash flow———₩26B₩27B₩28B₩29B₩30B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩24B₩24B₩23B₩22B₩21B

Terminal value ₩593B, worth ₩417B 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 ₩5,597 a share)Now 1.64×₩5,9471.06×₩8,3491.49×₩9,4011.68×
Price / earnings (last 12 months: ₩1,351 a share)Now 6.80×₩11,1368.25×₩14,43610.7×₩20,50815.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,705 a share)Now 3.40×₩22,3098.25×₩28,91910.7×₩41,08115.2×

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%
6.3%₩20,241₩22,071₩24,328₩27,178₩30,892
6.8%₩18,484₩19,979₩21,785₩24,011₩26,823
7.3%₩17,007₩18,247₩19,721₩21,503₩23,700
7.8%₩15,747₩16,790₩18,013₩19,468₩21,227
8.3%₩14,659₩15,547₩16,577₩17,784₩19,220

Now (TTM)

Market cap
₩249B
Enterprise value
₩214B
P/E
6.8×
P/B
1.6×
P/S
0.9×
EV/EBITDA
—
Dividend yield
5.7%

Over time (at each year end)

20252024202320222021
Price₩7,870₩6,900₩5,950₩6,680₩9,170
Market cap₩213B₩187B₩161B₩181B₩248B
P/E10.2×12.3×12.9×8.5×12.4×
P/B1.5×1.4×1.0×1.2×1.7×
P/S0.8×0.9×0.8×0.9×1.3×
EV/EBITDA—————
Dividend yield6.6%7.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Digital Daesung6.8×1.6×0.9×—5.7%
MegaStudyEdu4.7×0.8×0.4×2.1×7.8%
Multicampus6.9×0.7×0.5×—5.1%
Ibkimyoung6.0×1.6×0.8×—13.5%
JLS12.1×1.0×0.9×—9.3%
Creverse8.6×1.6×0.4×—9.8%
Woongjin Thinkbig—0.3×0.1×—15.0%
Similar companies (median)6.9×0.9×0.5×2.1×9.5%

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

Also known as: Digital Daesung / 디지털대성 / 068930 / KRX:068930

Source: KRX statistical information