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Sungchang Autotech

080470 · KOSDAQ · ₩080470 · 성창오토텍

₩2,640 ₩0 (0.00%)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

₩7,061

vs the current price (₩2,640)

Enterprise value
₩80B
Equity value
₩52B
WACC
5.8%

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 167% 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 ₩2,640, the model needs an operating margin of 2.8% every year (it uses 3.4%).
  • Or revenue growth −8.7 points a year higher than assumed in each of the 5 years.
  • 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.
  • Today's P/E is 3.9× against a typical 6.0× 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
—
Base
₩7,061
+167.5%
Bull
₩41,490
+1,471.6%

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 (3.4%).

Revenue growth

  • 9.6%

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

    Default: the last 3 years' revenue growth (9.6% a year, annual reports), fading to 3% by year 5.

  • 8%

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

    Default: the last 3 years' revenue growth (9.6% a year, annual reports), fading to 3% by year 5.

  • 6.3%

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

    Default: the last 3 years' revenue growth (9.6% 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 (9.6% 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 (9.6% a year, annual reports), fading to 3% by year 5.

Business

  • 3.4%

    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: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 9.9%

    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).

  • 3.5%

    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.

  • 4.11%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 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 0.19, 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.

  • 5.61%

    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)
₩237B
Net debt (borrowings and leases − cash and deposits)
₩18B
+ Stakes and investments
₩2.4B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩13B
Shares
7,300,000
Share price
₩2,640
Market cap
₩19B

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₩169B₩194B₩244B₩259B₩280B₩298B₩312B₩321B
Growth−8.4%14.8%25.3%9.6%8.0%6.3%4.7%3.0%
EBIT₩4.1B₩6.3B₩12B₩8.8B₩9.5B₩10B₩11B₩11B
EBIT margin2.4%3.2%4.8%3.4%3.4%3.4%3.4%3.4%
After-tax EBIT₩2.9B₩4.6B₩8.4B₩6.4B₩6.9B₩7.3B₩7.7B₩7.9B
+ Depreciation₩6.2B₩6.7B₩6.9B₩8.6B₩9.2B₩9.8B₩10B₩11B
− Capital spending₩31B₩13B₩12B₩26B₩28B₩29B₩31B₩32B
− Working capital−₩419M₩1.5B−₩9.4B₩795M₩726M₩618M₩490M₩327M
Free cash flow−₩22B−₩3B₩13B−₩12B−₩12B−₩13B−₩13B−₩14B
Discount factor———0.9450.8930.8440.7980.754
Present value———−₩11B−₩11B−₩11B−₩11B−₩10B

Terminal value ₩178B, worth ₩134B today: 167% 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 ₩8,251 a share)Now 0.32×₩3,7600.46×₩5,6530.69×₩11,1061.35×
Price / earnings (last 12 months: ₩682 a share)Now 3.87×₩2,2823.34×₩4,0885.99×₩23,88035.0×

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%
4.8%₩7,877₩10,731₩14,600₩20,144₩28,754
5.3%₩5,330₩7,463₩10,239₩14,001₩19,392
5.8%₩3,344₩4,987₩7,061₩9,760₩13,419
6.3%₩1,758₩3,056₩4,654₩6,671₩9,296
6.8%₩468₩1,514₩2,777₩4,331₩6,292

Now (TTM)

Market cap
₩19B
Enterprise value
₩37B
P/E
3.9×
P/B
0.3×
P/S
0.1×
EV/EBITDA
2.4×
Dividend yield
2.7%

Over time (at each year end)

20252024202320222021
Price₩4,020₩3,575₩5,030₩6,890₩8,170
Market cap₩29B₩26B₩37B₩50B₩60B
P/E3.5×4.8×6.7×21.4×15.5×
P/B0.5×0.5×0.8×1.1×1.4×
P/S0.1×0.1×0.2×0.3×0.4×
EV/EBITDA2.4×4.2×6.7×4.7×6.9×
Dividend yield1.7%1.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sungchang Autotech3.9×0.3×0.1×2.4×2.7%
Hyundai Mobis8.7×0.6×0.5×—1.8%
SL6.1×0.9×0.4×3.7×0.0%
HL Mando10.7×0.6×0.2×—1.9%
Samhyun—13.4×18.9×—0.0%
Hyundai WIA19.3×0.4×0.2×—2.4%
SNT Dynamics13.4×0.7×0.9×—6.8%
Similar companies (median)10.7×0.7×0.5×3.7×1.9%

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

Also known as: Sungchang Autotech / 성창오토텍 / 080470 / KRX:080470

Source: KRX statistical information