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Dongyang E&P

079960 · KOSDAQ · ₩079960 · 동양이엔피

₩15,840▲ ₩140 (0.89%)End-of-day · Oct 28, 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

₩63,404

vs the current price (₩15,840)

Enterprise value
₩435B
Equity value
₩479B
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 is 300% 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 ₩15,840, the model needs an operating margin of 2.2% every year (it uses 7.1%).
  • 57% 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 2.1× against a typical 3.4× 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
₩36,013
+127.4%
Base
₩63,404
+300.3%
Bull
₩111,748
+605.5%

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 (7.1%).

Revenue growth

  • 2.1%

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

    Default: the last 3 years' revenue growth (2.1% a year, annual reports), fading to 3% by year 5.

  • 2.4%

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

    Default: the last 3 years' revenue growth (2.1% a year, annual reports), fading to 3% by year 5.

  • 2.6%

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

    Default: the last 3 years' revenue growth (2.1% a year, annual reports), fading to 3% by year 5.

  • 2.8%

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

    Default: the last 3 years' revenue growth (2.1% 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 (2.1% a year, annual reports), fading to 3% by year 5.

Business

  • 7.1%

    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.

  • 1.8%

    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).

  • 2.3%

    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).

  • 28%

    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.

  • 4.08%

    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.

  • 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 0.4, 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.

  • 5.58%

    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)
₩520B
Net debt (borrowings and leases − cash and deposits)
−₩37B
+ Stakes and investments
₩11B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩4.1B
Shares
7,551,658
Share price
₩15,840
Market cap
₩120B

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₩537B₩548B₩596B₩531B₩544B₩558B₩574B₩591B
Growth−4.1%2.1%8.8%2.1%2.4%2.6%2.8%3.0%
EBIT₩43B₩52B₩54B₩38B₩39B₩40B₩41B₩42B
EBIT margin8.0%9.4%9.0%7.1%7.1%7.1%7.1%7.1%
After-tax EBIT₩31B₩37B₩39B₩27B₩28B₩29B₩30B₩30B
+ Depreciation———₩9.6B₩9.8B₩10B₩10B₩11B
− Capital spending₩6.7B₩13B₩19B₩12B₩13B₩13B₩13B₩14B
− Working capital₩46B−₩11B−₩41B₩3.1B₩3.6B₩4B₩4.4B₩4.8B
Free cash flow———₩22B₩22B₩22B₩22B₩23B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩20B₩19B₩18B₩17B₩16B

Terminal value ₩494B, worth ₩346B 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 ₩62,081 a share)Now 0.26×₩21,8040.35×₩26,8930.43×₩33,6120.54×
Price / earnings (last 12 months: ₩7,484 a share)Now 2.12×₩17,7702.37×₩25,7863.45×₩48,4066.47×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,872 a share)Now 3.25×₩11,5702.37×₩16,7893.45×₩31,5176.47×

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%₩68,470₩72,251₩76,876₩82,672₩90,159
6.9%₩62,937₩65,897₩69,448₩73,790₩79,232
7.4%₩58,277₩60,629₩63,404₩66,731₩70,800
7.9%₩54,299₩56,190₩58,391₩60,986₩64,098
8.4%₩50,864₩52,400₩54,166₩56,220₩58,642

Now (TTM)

Market cap
₩120B
Enterprise value
₩83B
P/E
2.1×
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
2.8%

Over time (at each year end)

20252024202320222021
Price₩25,550₩17,930₩20,800₩15,000₩18,700
Market cap₩193B₩135B₩157B₩113B₩141B
P/E3.9×1.9×3.3×4.9×8.0×
P/B0.4×0.3×0.5×0.4×0.5×
P/S0.3×0.2×0.3×0.2×0.3×
EV/EBITDA—————
Dividend yield1.8%3.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dongyang E&P2.1×0.3×0.2×—2.8%
LS Electric63.5×11.6×4.3×39.3×0.0%
Hyosung Heavy Industries31.8×7.2×2.9×—0.4%
HD Hyundai Electric19.6×7.4×3.8×—0.0%
Gaon Cable117.0×14.2×2.6×61.1×0.0%
Sanil Electric27.9×7.6×8.5×—0.8%
Taihan Cable & Solution—2.3×1.0×—0.0%
Similar companies (median)31.8×7.5×3.4×50.2×0.0%

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

Also known as: Dongyang E&P / 동양이엔피 / 079960 / KRX:079960

Source: KRX statistical information