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Saeronautomotive Corporration

075180 · KOSPI · ₩075180 · 새론오토모티브

₩2,850▲ ₩20 (0.71%)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

₩5,152

vs the current price (₩2,850)

Enterprise value
−₩54B
Equity value
₩99B
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 81% 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 ₩2,850, the model needs an operating margin of −4.4% every year (it uses −2.2%).
  • 100% 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 2.0× against a typical 5.6× 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
₩4,683
+64.3%
Base
₩5,152
+80.8%
Bull
₩6,449
+126.3%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

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Cycle options

Margin path

Every year uses the cycle-average margin (−2.2%).

Revenue growth

  • 0.2%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 0.9%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 1.6%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 2.3%

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

    Default: the last 3 years' revenue growth (0.2% 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 (0.2% a year, annual reports), fading to 3% by year 5.

Business

  • -2.2%

    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.

  • 5.6%

    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).

  • 3.8%

    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).

  • 20%

    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 0.01, 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)
₩144B
Net debt (borrowings and leases − cash and deposits)
−₩124B
+ Stakes and investments
₩30B
Associates, long-term financial assets and deposits (book value)
Shares
19,200,000
Share price
₩2,850
Market cap
₩55B

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₩140B₩142B₩139B₩144B₩146B₩148B₩151B₩156B
Growth1.6%1.2%−2.3%0.2%0.9%1.6%2.3%3.0%
EBIT−₩7.6B−₩5.8B−₩739M−₩3.2B−₩3.2B−₩3.3B−₩3.3B−₩3.4B
EBIT margin−5.4%−4.1%−0.5%−2.2%−2.2%−2.2%−2.2%−2.2%
After-tax EBIT−₩5.5B−₩4.2B−₩536M−₩2.3B−₩2.3B−₩2.4B−₩2.4B−₩2.5B
+ Depreciation₩7.7B₩8B₩7.8B₩8.1B₩8.2B₩8.3B₩8.5B₩8.7B
− Capital spending₩6.4B₩4.2B₩5.3B₩5.5B₩5.5B₩5.6B₩5.8B₩5.9B
− Working capital₩589M−₩2.8B₩272M₩58M₩260M₩466M₩681M₩909M
Free cash flow−₩4.8B₩2.4B₩1.7B₩238M₩39M−₩163M−₩371M−₩589M
Discount factor———0.9320.8680.8090.7540.703
Present value———₩222M₩34M−₩132M−₩279M−₩414M

Terminal value −₩77B, worth −₩54B today: 99% 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 ₩13,411 a share)Now 0.21×₩3,1900.24×₩4,3050.32×₩6,0490.45×
Price / earnings (last 12 months: ₩1,409 a share)Now 2.02×₩5,1913.68×₩7,9525.64×₩16,97312.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩259 a share)Now 11.0×₩9543.68×₩1,4625.64×₩3,12112.0×

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%₩5,272₩4,852₩4,334₩3,677₩2,821
6.8%₩5,561₩5,211₩4,786₩4,262₩3,599
7.3%₩5,802₩5,505₩5,152₩4,723₩4,194
7.8%₩6,007₩5,752₩5,453₩5,096₩4,663
8.3%₩6,183₩5,962₩5,705₩5,403₩5,043

Now (TTM)

Market cap
₩55B
Enterprise value
−₩69B
P/E
2.0×
P/B
0.2×
P/S
0.4×
EV/EBITDA
—
Dividend yield
4.9%

Over time (at each year end)

20252024202320222021
Price₩3,370₩3,280₩4,100₩5,060₩5,480
Market cap₩65B₩63B₩79B₩97B₩105B
P/E23.4×3.7×26.1×—4.5×
P/B0.3×0.3×0.3×0.4×0.4×
P/S0.5×0.4×0.6×0.7×0.8×
EV/EBITDA————3.1×
Dividend yield4.2%4.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Saeronautomotive Corporration2.0×0.2×0.4×—4.9%
Hyundai Mobis8.3×0.6×0.5×—1.9%
SL5.9×0.8×0.4×3.6×0.0%
HL Mando10.3×0.6×0.2×—2.0%
Hyundai WIA18.9×0.4×0.2×—2.4%
Samhyun—11.2×15.8×—0.0%
SNT Dynamics12.5×0.7×0.8×—7.3%
Similar companies (median)10.3×0.6×0.4×3.6×2.0%

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

Also known as: Saeronautomotive Corporration / 새론오토모티브 / 075180 / KRX:075180

Source: KRX statistical information