KOSPI · 069730 · Steel & Materials · ₩069730

DSR WireDSR제강

069730 · KOSPI · ₩069730 · DSR제강

₩5,200▲ ₩50 (0.97%)End-of-day · Oct 29, 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

₩23,024

vs the current price (₩5,200)

Enterprise value: ₩288B
Equity value: ₩332B
WACC: 7.1%

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 343% 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 ₩5,200, the model needs an operating margin of 1.9% every year (it uses 10.6%).
Margins ranged from 2.1% to 12.4% 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.
38% 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.
Today's P/E is 2.2× against a typical 2.9× 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: ₩15,392; +196.0%
Base: ₩23,024; +342.8%
Bull: ₩36,491; +601.7%

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 (10.6%).

Revenue growth

Revenue growth, year 1-4.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-2.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.7% 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 (-4.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin10.6%
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.
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 & amortisation1.2%
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 spending1.5%
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).
Working capital36.7%
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 0.03, 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): ₩233B
Net debt (borrowings and leases − cash and deposits): ₩7.6B
+ Stakes and investments: ₩51B; Associates, long-term financial assets and deposits (book value)
Shares: 14,400,000
Share price: ₩5,200
Market cap: ₩75B

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	₩213B	₩216B	₩227B	₩222B	₩216B	₩214B	₩217B	₩223B
Growth	−18.6%	1.2%	5.1%	−4.7%	−2.8%	−0.8%	1.1%	3.0%
EBIT	₩23B	₩20B	₩28B	₩24B	₩23B	₩23B	₩23B	₩24B
EBIT margin	11.0%	9.1%	12.4%	10.6%	10.6%	10.6%	10.6%	10.6%
After-tax EBIT	₩17B	₩14B	₩20B	₩17B	₩17B	₩16B	₩17B	₩17B
+ Depreciation	—	—	—	₩2.7B	₩2.6B	₩2.6B	₩2.6B	₩2.7B
− Capital spending	₩1.9B	₩5.6B	₩2.6B	₩3.3B	₩3.2B	₩3.2B	₩3.3B	₩3.4B
− Working capital	−₩22B	₩13B	₩1.9B	−₩4B	−₩2.3B	−₩635M	₩866M	₩2.4B
Free cash flow	—	—	—	₩20B	₩18B	₩16B	₩15B	₩14B
Discount factor	—	—	—	0.934	0.872	0.815	0.761	0.711
Present value	—	—	—	₩19B	₩16B	₩13B	₩12B	₩10B

Terminal value ₩307B, worth ₩218B today: 76% 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 ₩14,091 a share)Now 0.37×	₩4,3170.31×	₩4,8280.34×	₩6,4190.46×
Price / earnings (last 12 months: ₩2,327 a share)Now 2.23×	₩5,3062.28×	₩6,8202.93×	₩11,4934.94×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,337 a share)Now 1.56×	₩7,6072.28×	₩9,7772.93×	₩16,4764.94×

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%
6.1%	₩24,563	₩25,992	₩27,768	₩30,034	₩33,030
6.6%	₩22,666	₩23,781	₩25,137	₩26,820	₩28,968
7.1%	₩21,081	₩21,967	₩23,024	₩24,307	₩25,901
7.6%	₩19,737	₩20,450	₩21,289	₩22,288	₩23,502
8.1%	₩18,582	₩19,164	₩19,839	₩20,631	₩21,575

Now (TTM)

Market cap: ₩75B
Enterprise value: ₩82B
P/E: 2.2×
P/B: 0.4×
P/S: 0.3×
EV/EBITDA: —
Dividend yield: 8.3%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩3,840	₩3,610	₩4,180	₩4,775	₩4,730
Market cap	₩55B	₩52B	₩60B	₩69B	₩68B
P/E	2.2×	—	4.7×	2.4×	8.9×
P/B	0.3×	0.3×	0.3×	0.4×	0.4×
P/S	0.2×	0.2×	0.3×	0.3×	0.3×
EV/EBITDA	—	—	—	3.4×	10.7×
Dividend yield	11.2%	2.8%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
DSR Wire	2.2×	0.4×	0.3×	—	8.3%
POSCO Holdings	16.2×	0.4×	0.3×	7.7×	3.6%
Korea Zinc	18.6×	1.6×	0.9×	—	2.3%
Hyundai Steel	—	0.2×	0.2×	—	1.9%
Poongsan	8.1×	0.7×	0.3×	5.9×	2.9%
SeAH Besteel Holdings	12.2×	0.5×	0.3×	9.5×	4.0%
Sama Aluminium	—	4.1×	3.0×	—	0.0%
Similar companies (median)	14.2×	0.6×	0.3×	7.7×	2.6%

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

Also known as: DSR Wire / DSR제강 / 069730 / KRX:069730

Source: KRX statistical information