KOSDAQ · 084850 · Electronic components · ₩084850

ITM Semiconductor아이티엠반도체

084850 · KOSDAQ · ₩084850 · 아이티엠반도체

₩5,700▼ ₩590 (9.38%)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

With these assumptions the model gives no positive value.

Enterprise value: −₩249B
Equity value: −₩521B
WACC: 5.3%

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 ₩5,700, the model needs an operating margin of 5.1% every year (it uses −1.5%).
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

Cycle options

Margin path

Every year uses the cycle-average margin (−1.5%).

Revenue growth

Revenue growth, year 1-1.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-0.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 30.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-1.6% 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 (-1.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-1.5%
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 & amortisation3.6%
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 spending4.6%
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 capital16.6%
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.
Beta0.69
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 0.54, 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): ₩466B
Net debt (borrowings and leases − cash and deposits): ₩271B
Shares: 22,682,934
Share price: ₩5,700
Market cap: ₩129B

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	₩581B	₩648B	₩603B	₩459B	₩456B	₩460B	₩468B	₩482B
Growth	−8.4%	11.6%	−6.9%	−1.6%	−0.5%	0.7%	1.8%	3.0%
EBIT	−₩15B	₩2.4B	−₩7B	−₩6.9B	−₩6.8B	−₩6.9B	−₩7B	−₩7.2B
EBIT margin	−2.6%	0.4%	−1.2%	−1.5%	−1.5%	−1.5%	−1.5%	−1.5%
After-tax EBIT	−₩11B	₩1.7B	−₩5.1B	−₩5B	−₩5B	−₩5B	−₩5.1B	−₩5.2B
+ Depreciation	—	—	—	₩17B	₩16B	₩17B	₩17B	₩17B
− Capital spending	₩31B	₩34B	₩19B	₩21B	₩21B	₩21B	₩22B	₩22B
− Working capital	−₩30B	₩8.3B	−₩43M	−₩1.2B	−₩381M	₩530M	₩1.4B	₩2.3B
Free cash flow	—	—	—	−₩8.3B	−₩9.1B	−₩10B	−₩11B	−₩12B
Discount factor	—	—	—	0.950	0.902	0.857	0.814	0.773
Present value	—	—	—	−₩7.9B	−₩8.3B	−₩8.7B	−₩9.1B	−₩9.6B

Terminal value −₩266B, worth −₩206B today: 83% 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 ₩1,220 a share)Now 4.67×	₩1,8311.50×	₩3,2722.68×	₩4,3223.54×

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%
4.3%	—	—	—	—	—
4.8%	—	—	—	—	—
5.3%	—	—	—	—	—
5.8%	—	—	—	—	—
6.3%	—	—	—	—	—

Now (TTM)

Market cap: ₩129B
Enterprise value: ₩399B
P/E: —
P/B: 4.7×
P/S: 0.3×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,780	₩12,750	₩25,750	₩26,200	₩42,600
Market cap	₩222B	₩289B	₩584B	₩594B	₩966B
P/E	—	236.9×	—	—	154.6×
P/B	2.3×	1.5×	3.1×	3.0×	3.7×
P/S	0.4×	0.4×	1.0×	0.9×	1.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
ITM Semiconductor	—	4.7×	0.3×	—	0.0%
Samsung Electro-Mechanics	95.9×	9.4×	7.8×	—	0.2%
Doosan	37.2×	5.2×	0.7×	—	0.4%
Hanwha Systems	69.5×	2.7×	3.0×	—	0.8%
LG Innotek	12.4×	1.3×	0.3×	—	0.5%
Daeduck Electronics	44.9×	7.0×	5.1×	—	0.4%
Isupetasys	33.8×	7.9×	5.2×	—	0.0%
Similar companies (median)	41.1×	6.1×	4.0×	—	0.4%

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

Also known as: ITM Semiconductor / 아이티엠반도체 / 084850 / KRX:084850

Source: KRX statistical information