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Sang-A Frontec

089980 · KOSDAQ · ₩089980 · 상아프론테크

₩13,990▲ ₩530 (3.94%)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

With these assumptions the model gives no positive value.

Enterprise value
₩45B
Equity value
−₩64B
WACC
6.9%

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 ₩13,990, the model needs an operating margin of 13.3% every year (it uses 4.8%).
  • 35% 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 22.7× against a typical 47.1× 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
₩2,971
−78.8%

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 (4.8%).

Revenue growth

  • 2.7%

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

    Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.

  • 2.7%

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

    Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.

  • 2.8%

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

    Default: the last 3 years' revenue growth (2.7% a year, annual reports), fading to 3% by year 5.

  • 2.9%

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

    Default: the last 3 years' revenue growth (2.7% 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 (2.7% a year, annual reports), fading to 3% by year 5.

Business

  • 4.8%

    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.

  • 12.6%

    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).

  • 15.8%

    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.

  • 4.08%

    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.

  • 0.76

    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 0.65, 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.

  • 5.58%

    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)
₩215B
Net debt (borrowings and leases − cash and deposits)
₩109B
Shares
15,989,037
Share price
₩13,990
Market cap
₩224B

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₩184B₩172B₩196B₩221B₩227B₩233B₩240B₩247B
Growth1.3%−6.5%14.1%2.7%2.7%2.8%2.9%3.0%
EBIT₩9B₩5.8B₩6.7B₩11B₩11B₩11B₩12B₩12B
EBIT margin4.9%3.4%3.4%4.8%4.8%4.8%4.8%4.8%
After-tax EBIT₩6.5B₩4.2B₩4.9B₩7.7B₩7.9B₩8.1B₩8.3B₩8.6B
+ Depreciation———₩28B₩29B₩29B₩30B₩31B
− Capital spending₩29B₩28B₩30B₩35B₩36B₩37B₩38B₩39B
− Working capital−₩880M−₩16B₩12B₩2.3B₩2.4B₩2.5B₩2.7B₩2.9B
Free cash flow———−₩1.7B−₩1.7B−₩1.9B−₩2B−₩2.2B
Discount factor———0.9360.8750.8190.7660.717
Present value———−₩1.6B−₩1.5B−₩1.5B−₩1.6B−₩1.6B

Terminal value ₩73B, worth ₩53B today: 117% 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 ₩13,133 a share)Now 1.07×₩16,3991.25×₩23,5631.79×₩46,6043.55×
Price / earnings (last 12 months: ₩616 a share)Now 22.7×₩16,05926.1×₩29,01747.1×₩40,42465.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,243 a share)Now 11.3×₩32,38926.1×₩58,52647.1×₩81,53365.6×

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%
5.9%—————
6.4%—————
6.9%—————
7.4%—————
7.9%—————

Now (TTM)

Market cap
₩224B
Enterprise value
₩333B
P/E
22.7×
P/B
1.1×
P/S
1.0×
EV/EBITDA
—
Dividend yield
1.4%

Over time (at each year end)

20252024202320222021
Price₩15,520₩18,300₩22,300₩27,100₩52,300
Market cap₩248B₩293B₩357B₩433B₩836B
P/E36.7×47.5×29.7×58.4×89.9×
P/B1.2×1.5×1.8×2.3×4.6×
P/S1.3×1.7×1.9×2.4×4.7×
EV/EBITDA—————
Dividend yield1.3%1.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Sang-A Frontec22.7×1.1×1.0×—1.4%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea20.1×2.6×2.1×—0.7%
Dongwon Systems9.7×0.7×0.4×5.7×2.8%
Nexen Tire3.5×0.3×0.2×—3.6%
PI Advanced Materials12.8×1.2×1.7×5.2×2.2%
Similar companies (median)7.8×0.6×0.4×5.5×2.5%

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

Also known as: Sang-A Frontec / 상아프론테크 / 089980 / KRX:089980

Source: KRX statistical information