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085310 · KOSPI · ₩085310 · 엔케이

₩8,620▼ ₩50 (0.58%)End-of-day · Oct 27, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩70B
Equity value
−₩16B
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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩8,620, the model needs an operating margin of 3.2% every year (it uses 0.5%).
  • 45% 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.
  • 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 13.4× against a typical 5.4× 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
—
Base
—
Bull
₩5,581
−35.3%

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 (0.5%).

Revenue growth

  • 19.3%

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

    Default: the last 3 years' revenue growth (19.3% a year, annual reports), fading to 3% by year 5.

  • 15.2%

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

    Default: the last 3 years' revenue growth (19.3% a year, annual reports), fading to 3% by year 5.

  • 11.1%

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

    Default: the last 3 years' revenue growth (19.3% a year, annual reports), fading to 3% by year 5.

  • 7.1%

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

    Default: the last 3 years' revenue growth (19.3% 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 (19.3% a year, annual reports), fading to 3% by year 5.

Business

  • 0.5%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 4.5%

    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).

  • 5.6%

    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).

  • 40%

    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.

  • 4.03%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 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 -1.37, 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.

  • 5.53%

    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)
₩146B
Net debt (borrowings and leases − cash and deposits)
−₩57B
− Minority interests
₩3.9B
Shares
7,418,074
Share price
₩8,620
Market cap
₩64B

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₩92B₩111B₩130B₩175B₩201B₩223B₩239B₩246B
Growth19.4%21.2%17.3%19.3%15.2%11.1%7.1%3.0%
EBIT−₩1.1B−₩4.8B−₩648M₩873M₩1B₩1.1B₩1.2B₩1.2B
EBIT margin−1.2%−4.3%−0.5%0.5%0.5%0.5%0.5%0.5%
After-tax EBIT−₩800M−₩3.5B−₩470M₩633M₩729M₩810M₩867M₩893M
+ Depreciation———₩7.9B₩9B₩10B₩11B₩11B
− Capital spending₩1.7B₩3.9B₩15B₩9.8B₩11B₩13B₩13B₩14B
− Working capital₩82B−₩409M−₩67B₩11B₩11B₩8.9B₩6.3B₩2.9B
Free cash flow———−₩13B−₩12B−₩11B−₩8.1B−₩4.7B
Discount factor———0.9320.8680.8090.7530.702
Present value———−₩12B−₩10B−₩8.6B−₩6.1B−₩3.3B

Terminal value −₩42B, worth −₩29B today: 42% 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 ₩22,723 a share)Now 0.38×₩8,3700.37×₩13,3940.59×₩17,1030.75×
Price / earnings (last 12 months: ₩643 a share)Now 13.4×₩7161.11×₩3,4785.41×₩5,0457.85×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,938 a share)Now 4.45×₩2,1581.11×₩10,4875.41×₩15,2107.85×

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%—————
6.8%—————
7.3%—————
7.8%₩158————
8.3%₩366————

Now (TTM)

Market cap
₩64B
Enterprise value
₩4.1B
P/E
13.4×
P/B
0.4×
P/S
0.4×
EV/EBITDA
—
Dividend yield
1.2%

Over time (at each year end)

20252024202320222021
Price₩11,670₩8,620₩10,050₩8,700₩10,450
Market cap₩87B₩64B₩75B₩65B₩78B
P/E——1.3×6.0×6.9×
P/B0.5×0.4×0.4×0.6×0.8×
P/S0.7×0.6×0.8×0.8×1.1×
EV/EBITDA—————
Dividend yield0.9%1.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
NK13.4×0.4×0.4×—1.2%
CS Wind385.5×1.3×0.6×—2.5%
Hankuk Carbon7.8×1.2×0.9×—2.1%
Taewoong65.8×0.8×1.3×21.0×0.0%
YG-15.1×0.8×0.5×—1.8%
Bosung Power Technology18.8×2.1×1.8×8.5×0.0%
HT Robotics44.6×3.2×2.1×—0.0%
Similar companies (median)31.7×1.2×1.1×14.7×0.9%

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

Also known as: NK / 엔케이 / 085310 / KRX:085310

Source: KRX statistical information