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DNFCo

092070 · KOSDAQ · ₩092070 · 디엔에프

₩12,650▼ ₩730 (5.46%)End-of-day · Oct 29, 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

₩2,950

vs the current price (₩12,650)

Enterprise value
₩8.5B
Equity value
₩34B
WACC
8.1%

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 77% 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 ₩12,650, the model needs an operating margin of 16.3% every year (it uses 3.4%).
  • Margins ranged from −3.4% to 17.0% 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.
  • 40% 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 49.0× against a typical 20.4× 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
₩1,977
−84.4%
Base
₩2,950
−76.7%
Bull
₩4,877
−61.4%

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 (3.4%).

Revenue growth

  • -6.5%

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

    Default: the last 3 years' revenue growth (-6.5% a year, annual reports), fading to 3% by year 5.

  • -4.1%

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

    Default: the last 3 years' revenue growth (-6.5% a year, annual reports), fading to 3% by year 5.

  • -1.8%

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

    Default: the last 3 years' revenue growth (-6.5% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-6.5% 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 (-6.5% a year, annual reports), fading to 3% by year 5.

Business

  • 3.4%

    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.

  • 10.2%

    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).

  • 12.7%

    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.

  • 0.73

    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 0.59, 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)
₩86B
Net debt (borrowings and leases − cash and deposits)
−₩26B
Shares
11,571,858
Share price
₩12,650
Market cap
₩146B

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₩84B₩74B₩79B₩80B₩77B₩76B₩76B₩79B
Growth−13.1%−12.2%7.0%−6.5%−4.1%−1.8%0.6%3.0%
EBIT−₩2.9B−₩1B−₩674M₩2.7B₩2.6B₩2.6B₩2.6B₩2.7B
EBIT margin−3.4%−1.4%−0.9%3.4%3.4%3.4%3.4%3.4%
After-tax EBIT−₩2.1B−₩739M−₩488M₩2B₩1.9B₩1.9B₩1.9B₩1.9B
+ Depreciation———₩8.2B₩7.9B₩7.7B₩7.8B₩8B
− Capital spending₩18B₩6.3B₩6.2B₩10B₩9.8B₩9.6B₩9.7B₩10B
− Working capital−₩1.5B−₩10B−₩10B−₩2.2B−₩1.3B−₩555M₩182M₩915M
Free cash flow———₩2.2B₩1.3B₩529M−₩209M−₩942M
Discount factor———0.9250.8560.7920.7320.678
Present value———₩2B₩1.1B₩419M−₩153M−₩638M

Terminal value ₩8.5B, worth ₩5.7B today: 67% 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 ₩12,915 a share)Now 0.98×₩11,0910.86×₩16,0261.24×₩23,0191.78×
Price / earnings (last 12 months: ₩258 a share)Now 49.0×₩2,91111.3×₩5,26320.4×₩16,96265.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩55 a share)Now 231.1×₩61711.3×₩1,11520.4×₩3,59565.7×

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%
7.1%₩3,289₩3,193₩3,077₩2,933₩2,752
7.6%₩3,207₩3,117₩3,008₩2,876₩2,713
8.1%₩3,138₩3,052₩2,950₩2,829₩2,682
8.6%₩3,077₩2,996₩2,901₩2,789₩2,656
9.1%₩3,025₩2,948₩2,860₩2,756₩2,634

Now (TTM)

Market cap
₩146B
Enterprise value
₩120B
P/E
49.0×
P/B
1.0×
P/S
1.7×
EV/EBITDA
—
Dividend yield
0.8%

Over time (at each year end)

20252024202320222021
Price₩15,620₩8,820₩23,950₩13,200₩22,850
Market cap₩181B₩102B₩277B₩153B₩264B
P/E145.8×161.8×53.6×14.5×24.6×
P/B1.2×0.7×1.8×1.0×1.8×
P/S2.3×1.4×3.3×1.6×3.0×
EV/EBITDA—————
Dividend yield0.6%1.1%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
DNFCo49.0×1.0×1.7×—0.8%
LG Chem—0.5×0.3×—0.9%
Hanwha Solutions—0.5×0.3×—0.0%
Hanwha6.1×0.4×0.1×—1.4%
SKC—1.8×1.7×—0.0%
KCC0.9×0.3×0.5×9.0×0.0%
Kumho Petro Chemical5.2×0.4×0.4×—1.6%
Similar companies (median)5.2×0.4×0.4×9.0×0.4%

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

Also known as: DNFCo / 디엔에프 / 092070 / KRX:092070

Source: KRX statistical information