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VM

089970 · KOSDAQ · ₩089970 · 브이엠

₩43,200▲ ₩4,400 (11.34%)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

₩18,440

vs the current price (₩43,200)

Enterprise value
₩304B
Equity value
₩490B
WACC
8.8%

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 57% 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 ₩43,200, the model needs an operating margin of 38.3% every year (it uses 13.6%).
  • Or revenue growth +36.2 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −42.2% to 30.3% 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.
  • Today's P/E is 17.4× against a typical 17.4× 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
₩14,607
−66.2%
Base
₩18,440
−57.3%
Bull
₩24,535
−43.2%

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 (13.6%).

Revenue growth

  • 0.7%

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

    Default: the last 3 years' revenue growth (0.7% a year, annual reports), fading to 3% by year 5.

  • 1.3%

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

    Default: the last 3 years' revenue growth (0.7% a year, annual reports), fading to 3% by year 5.

  • 1.9%

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

    Default: the last 3 years' revenue growth (0.7% 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 (0.7% 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 (0.7% a year, annual reports), fading to 3% by year 5.

Business

  • 13.6%

    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.

  • 5.8%

    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).

  • 7.2%

    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.

  • 4.11%

    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.

  • 0.86

    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 0.79, 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)
₩248B
Net debt (borrowings and leases − cash and deposits)
−₩185B
+ Stakes and investments
₩924M
Associates, long-term financial assets and deposits (book value)
Shares
26,556,065
Share price
₩43,200
Market cap
₩1.1T

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₩26B₩70B₩144B₩250B₩253B₩258B₩264B₩272B
Growth−81.6%170.2%105.5%0.7%1.3%1.9%2.4%3.0%
EBIT−₩11B−₩8.6B₩25B₩34B₩34B₩35B₩36B₩37B
EBIT margin−42.2%−12.2%17.1%13.6%13.6%13.6%13.6%13.6%
After-tax EBIT−₩7.9B−₩6.2B₩18B₩25B₩25B₩25B₩26B₩27B
+ Depreciation———₩15B₩15B₩15B₩15B₩16B
− Capital spending₩1.7B₩6.2B₩9B₩18B₩18B₩19B₩19B₩20B
− Working capital−₩16B−₩26B₩8.1B₩696M₩1.3B₩1.9B₩2.5B₩3.2B
Free cash flow———₩20B₩20B₩20B₩20B₩20B
Discount factor———0.9190.8440.7760.7130.655
Present value———₩19B₩17B₩15B₩14B₩13B

Terminal value ₩345B, worth ₩226B 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:

LowTypicalHigh
Price / book (book value ₩9,688 a share)Now 4.46×₩20,7502.14×₩33,1603.42×₩56,5005.83×
Price / earnings (last 12 months: ₩2,484 a share)Now 17.4×₩18,3167.37×₩43,20017.4×₩119,95048.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,697 a share)Now 16.0×₩19,8917.37×₩46,91417.4×₩130,26248.3×

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%
7.8%₩19,248₩19,800₩20,444₩21,206₩22,122
8.3%₩18,383₩18,838₩19,363₩19,975₩20,699
8.8%₩17,630₩18,008₩18,440₩18,938₩19,519
9.3%₩16,967₩17,285₩17,644₩18,054₩18,526
9.8%₩16,380₩16,649₩16,950₩17,290₩17,678

Now (TTM)

Market cap
₩1.1T
Enterprise value
₩963B
P/E
17.4×
P/B
4.5×
P/S
4.6×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩30,200₩6,870₩14,100₩10,600₩22,150
Market cap₩802B₩182B₩374B₩281B₩588B
P/E30.7×——10.1×12.7×
P/B4.5×1.5×3.1×2.4×5.2×
P/S5.6×2.6×14.4×2.0×3.3×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
VM17.4×4.5×4.6×—0.0%
Doosan Enerbility208.4×4.6×2.1×—0.0%
Hanmi Semiconductor82.2×24.4×33.1×74.0×0.4%
Jusung Engineering1,121.0×13.7×36.0×2,158.2×0.0%
Rainbow Robotics4,006.5×51.3×151.2×—0.0%
EO Technics44.8×6.5×10.9×—0.0%
Doosan Bobcat13,664.7×914.4×736.1×—3.5%
Similar companies (median)664.7×19.1×34.5×1,116.1×0.0%

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

Also known as: VM / 브이엠 / 089970 / KRX:089970

Source: KRX statistical information