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Iljin Power

094820 · KOSDAQ · ₩094820 · 일진파워

₩10,280▲ ₩410 (4.15%)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

₩16,814

vs the current price (₩10,280)

Enterprise value
₩278B
Equity value
₩254B
WACC
7.1%

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 64% 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 ₩10,280, the model needs an operating margin of 6.9% every year (it uses 8.9%).
  • Or revenue growth −10.0 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 6.9× against a typical 13.9× 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
₩6,865
−33.2%
Base
₩16,814
+63.6%
Bull
₩34,369
+234.3%

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 (8.9%).

Revenue growth

  • 8.7%

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

    Default: the last 3 years' revenue growth (8.7% a year, annual reports), fading to 3% by year 5.

  • 7.3%

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

    Default: the last 3 years' revenue growth (8.7% a year, annual reports), fading to 3% by year 5.

  • 5.9%

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

    Default: the last 3 years' revenue growth (8.7% a year, annual reports), fading to 3% by year 5.

  • 4.4%

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

    Default: the last 3 years' revenue growth (8.7% 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 (8.7% a year, annual reports), fading to 3% by year 5.

Business

  • 8.9%

    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.

  • 16.7%

    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).

  • 20.8%

    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).

  • 6.3%

    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.

  • 0.65

    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 0.48, 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)
₩285B
Net debt (borrowings and leases − cash and deposits)
₩29B
+ Stakes and investments
₩11B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩6.8B
Shares
15,078,709
Share price
₩10,280
Market cap
₩155B

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₩191B₩193B₩252B₩310B₩333B₩352B₩368B₩379B
Growth−2.6%1.2%30.5%8.7%7.3%5.9%4.4%3.0%
EBIT₩13B₩10B₩24B₩28B₩30B₩31B₩33B₩34B
EBIT margin6.9%5.3%9.6%8.9%8.9%8.9%8.9%8.9%
After-tax EBIT₩9.5B₩7.4B₩17B₩20B₩21B₩23B₩24B₩24B
+ Depreciation———₩52B₩56B₩59B₩61B₩63B
− Capital spending₩18B₩93B₩13B₩65B₩69B₩73B₩77B₩79B
− Working capital₩6.3B₩16B−₩43B₩1.6B₩1.4B₩1.2B₩977M₩695M
Free cash flow———₩5.7B₩6.4B₩7.1B₩7.7B₩8.2B
Discount factor———0.9340.8720.8140.7600.709
Present value———₩5.4B₩5.6B₩5.7B₩5.8B₩5.8B

Terminal value ₩352B, worth ₩250B today: 90% 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 ₩10,020 a share)Now 1.03×₩10,3891.04×₩14,2731.42×₩24,6122.46×
Price / earnings (last 12 months: ₩1,486 a share)Now 6.92×₩11,7107.88×₩20,60013.9×₩49,73533.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩991 a share)Now 10.4×₩7,8147.88×₩13,74713.9×₩33,19033.5×

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%
6.1%₩17,726₩19,580₩21,884₩24,825₩28,708
6.6%₩15,778₩17,264₩19,071₩21,316₩24,180
7.1%₩14,154₩15,366₩16,814₩18,575₩20,762
7.6%₩12,781₩13,784₩14,965₩16,376₩18,091
8.1%₩11,605₩12,446₩13,423₩14,574₩15,949

Now (TTM)

Market cap
₩155B
Enterprise value
₩183B
P/E
6.9×
P/B
1.0×
P/S
0.5×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩12,700₩7,970₩11,580₩12,000₩17,750
Market cap₩191B₩120B₩175B₩181B₩268B
P/E10.3×12.1×18.2×11.5×17.5×
P/B1.3×0.9×1.3×1.4×2.4×
P/S0.8×0.6×0.9×0.9×1.4×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Iljin Power6.9×1.0×0.5×—0.0%
Hyundai Engineering & Construction23.7×1.1×0.4×—0.8%
Daewoo Engineering & Construction—1.5×0.8×—0.0%
GS Engineering & Construction19.7×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.8×0.5×0.4×—2.9%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Iljin Power / 일진파워 / 094820 / KRX:094820

Source: KRX statistical information