KOSPI · 084010 · Steel & Materials · ₩084010

Daehan Steel대한제강

084010 · KOSPI · ₩084010 · 대한제강

₩8,210▼ ₩710 (7.96%)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

₩21,504

vs the current price (₩8,210)

Enterprise value: ₩587B
Equity value: ₩739B
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 162% 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 ₩8,210, the model needs an operating margin of 1.4% every year (it uses 4.7%).
Margins ranged from −0.2% to 10.1% 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.
34% 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 62.5× against a typical 3.9× 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: ₩11,673; +42.2%
Base: ₩21,504; +161.9%
Bull: ₩39,058; +375.7%

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 (4.7%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.5% 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 (-16.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.7%
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 & amortisation1.9%
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 spending2.3%
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).
Working capital10.3%
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 -0.16, 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): ₩1.3T
Net debt (borrowings and leases − cash and deposits): −₩247B
+ Stakes and investments: ₩39B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩134B
Shares: 34,371,596
Share price: ₩8,210
Market cap: ₩282B

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	₩1.4T	₩1.2T	₩1.2T	₩1.2T	₩1.1T	₩1.1T	₩1.1T	₩1.1T
Growth	−32.4%	−15.4%	1.8%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩110B	₩10B	−₩2.9B	₩55B	₩51B	₩50B	₩49B	₩51B
EBIT margin	7.6%	0.8%	−0.2%	4.7%	4.7%	4.7%	4.7%	4.7%
After-tax EBIT	₩80B	₩7.5B	−₩2.1B	₩40B	₩37B	₩36B	₩36B	₩37B
+ Depreciation	—	—	—	₩22B	₩21B	₩20B	₩20B	₩21B
− Capital spending	₩30B	₩39B	₩22B	₩27B	₩25B	₩24B	₩24B	₩25B
− Working capital	−₩13B	₩58B	₩19B	−₩13B	−₩8.1B	−₩3.9B	−₩217M	₩3.3B
Free cash flow	—	—	—	₩49B	₩41B	₩36B	₩32B	₩29B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	₩45B	₩35B	₩29B	₩24B	₩21B

Terminal value ₩618B, worth ₩433B today: 74% 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 ₩23,191 a share)Now 0.35×	₩8,5400.37×	₩10,1790.44×	₩13,5760.59×
Price / earnings (last 12 months: ₩131 a share)Now 62.5×	₩3122.37×	₩5143.91×	₩3,88929.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩811 a share)Now 10.1×	₩1,9242.37×	₩3,1713.91×	₩24,00729.6×

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%	₩22,537	₩23,748	₩25,233	₩27,098	₩29,511
6.9%	₩21,044	₩22,013	₩23,178	₩24,607	₩26,400
7.4%	₩19,785	₩20,573	₩21,504	₩22,625	₩23,998
7.9%	₩18,709	₩19,357	₩20,114	₩21,010	₩22,087
8.4%	₩17,778	₩18,318	₩18,941	₩19,669	₩20,529

Now (TTM)

Market cap: ₩282B
Enterprise value: ₩35B
P/E: 62.5×
P/B: 0.4×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 4.1%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩12,851	₩11,083	₩8,616	₩7,236	₩10,370
Market cap	₩442B	₩381B	₩296B	₩249B	₩356B
P/E	30.1×	10.2×	4.1×	2.0×	2.5×
P/B	0.6×	0.5×	0.4×	0.4×	0.5×
P/S	0.4×	0.3×	0.2×	0.1×	0.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	2.6%	3.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Daehan Steel	62.5×	0.4×	0.2×	—	4.1%
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: Daehan Steel / 대한제강 / 084010 / KRX:084010

Source: KRX statistical information