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Frtekco

073540 · KOSDAQ · ₩073540 · 에프알텍

₩2,320▼ ₩110 (4.53%)End-of-day · Oct 30, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩18B
Equity value
−₩11B
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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩2,320, the model needs an operating margin of 8.0% every year (it uses −4.1%).
  • Margins ranged from −24.1% to 3.6% 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 (−4.1%).

Revenue growth

  • 10.6%

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

    Default: the last 3 years' revenue growth (10.6% a year, annual reports), fading to 3% by year 5.

  • 8.7%

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

    Default: the last 3 years' revenue growth (10.6% a year, annual reports), fading to 3% by year 5.

  • 6.8%

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

    Default: the last 3 years' revenue growth (10.6% a year, annual reports), fading to 3% by year 5.

  • 4.9%

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

    Default: the last 3 years' revenue growth (10.6% 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 (10.6% a year, annual reports), fading to 3% by year 5.

Business

  • -4.1%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 10.8%

    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).

  • 13.5%

    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).

  • -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.

  • 4.01%

    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: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.1, 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)
₩18B
Net debt (borrowings and leases − cash and deposits)
−₩1.4B
+ Stakes and investments
₩6.2B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩616M
Shares
11,400,000
Share price
₩2,320
Market cap
₩26B

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₩25B₩30B₩25B₩20B₩21B₩23B₩24B₩25B
Growth33.0%20.0%−15.1%10.6%8.7%6.8%4.9%3.0%
EBIT−₩501M₩815M₩920M−₩809M−₩879M−₩939M−₩985M−₩1B
EBIT margin−2.0%2.7%3.6%−4.1%−4.1%−4.1%−4.1%−4.1%
After-tax EBIT−₩364M₩591M₩667M−₩586M−₩637M−₩681M−₩714M−₩736M
+ Depreciation———₩2.1B₩2.3B₩2.5B₩2.6B₩2.7B
− Capital spending₩9.5B₩503M₩192M₩2.7B₩2.9B₩3.1B₩3.2B₩3.3B
− Working capital−₩27B₩4.9B₩3.8B−₩151M−₩137M−₩117M−₩90M−₩58M
Free cash flow———−₩968M−₩1.1B−₩1.2B−₩1.3B−₩1.3B
Discount factor———0.9320.8680.8090.7540.703
Present value———−₩902M−₩937M−₩957M−₩960M−₩946M

Terminal value −₩19B, worth −₩13B today: 73% 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 ₩5,074 a share)Now 0.46×₩1,3150.26×₩2,3830.47×₩4,1820.82×

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%—————
6.8%—————
7.3%—————
7.8%—————
8.3%—————

Now (TTM)

Market cap
₩26B
Enterprise value
₩25B
P/E
—
P/B
0.5×
P/S
1.5×
EV/EBITDA
—
Dividend yield
3.2%

Over time (at each year end)

20252024202320222021
Price₩2,030₩1,332₩2,370₩2,860₩3,445
Market cap₩23B₩15B₩27B₩33B₩39B
P/E11.1×13.7×11.8×4.0×168.0×
P/B0.4×0.3×0.5×0.6×0.9×
P/S0.9×0.5×1.1×1.7×1.7×
EV/EBITDA—————
Dividend yield3.7%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Frtekco—0.5×1.5×—3.2%
Samsung Electronics8.8×2.3×2.7×—0.7%
LG Electronics23.6×0.9×0.3×—0.9%
Hanwha Vision21.8×2.7×1.4×—0.0%
RFHIC39.7×3.5×6.5×—0.8%
KMW—4.9×7.9×—0.0%
Intellian Technologies12.9×2.0×1.6×—0.4%
Similar companies (median)21.8×2.5×2.1×—0.6%

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

Also known as: Frtekco / 에프알텍 / 073540 / KRX:073540

Source: KRX statistical information