KOSDAQ · 095270 · Medical & precision devices · ₩095270

Wave Electronics웨이브일렉트로

095270 · KOSDAQ · ₩095270 · 웨이브일렉트로

₩4,495▼ ₩125 (2.71%)End-of-day · Oct 29, 2026 · End-of-day prices.

Trade

Sell Buy

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: −₩15B
Equity value: −₩1.6B
WACC: 7.4%

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 ₩4,495, the model needs an operating margin of 5.2% every year (it uses 0.6%).
Margins ranged from −10.0% to 3.0% 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.
100% 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 25.4× against a typical 23.3× 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: ₩2,127; −52.7%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (0.6%).

Revenue growth

Revenue growth, year 110.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 28.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 36.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (10.8% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin0.6%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1.9%
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).
Capital spending2.4%
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).
Working capital32.2%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
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.
Beta0.6
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 -0.02, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩83B
Net debt (borrowings and leases − cash and deposits): −₩9.2B
+ Stakes and investments: ₩4.4B; Associates, long-term financial assets and deposits (book value)
Shares: 14,372,406
Share price: ₩4,495
Market cap: ₩65B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩78B	₩78B	₩81B	₩92B	₩100B	₩107B	₩113B	₩116B
Growth	31.8%	0.1%	3.2%	10.8%	8.9%	6.9%	5.0%	3.0%
EBIT	₩2.4B	₩1.9B	−₩1.6B	₩553M	₩602M	₩643M	₩676M	₩696M
EBIT margin	3.0%	2.4%	−2.0%	0.6%	0.6%	0.6%	0.6%	0.6%
After-tax EBIT	₩1.7B	₩1.3B	−₩1.2B	₩401M	₩436M	₩466M	₩490M	₩504M
+ Depreciation	—	—	—	₩1.7B	₩1.9B	₩2B	₩2.1B	₩2.2B
− Capital spending	₩1.1B	₩1.5B	₩3.1B	₩2.2B	₩2.4B	₩2.6B	₩2.7B	₩2.8B
− Working capital	₩7B	−₩3.8B	−₩9.7B	₩2.9B	₩2.6B	₩2.2B	₩1.7B	₩1.1B
Free cash flow	—	—	—	−₩3B	−₩2.7B	−₩2.3B	−₩1.8B	−₩1.2B
Discount factor	—	—	—	0.931	0.867	0.808	0.752	0.700
Present value	—	—	—	−₩2.7B	−₩2.3B	−₩1.9B	−₩1.4B	−₩815M

Terminal value −₩8.8B, worth −₩6.1B today: 40% 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:

	Low	Typical	High
Price / book (book value ₩3,753 a share)Now 1.20×	₩3,5510.95×	₩4,4951.20×	₩5,2931.41×
Price / earnings (last 12 months: ₩177 a share)Now 25.4×	₩2001.13×	₩4,13223.3×	₩16,54093.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩216 a share)Now 20.8×	₩2441.13×	₩5,03623.3×	₩20,16093.4×

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%
6.4%	₩216	₩9	—	—	—
6.9%	₩233	₩50	—	—	—
7.4%	₩248	₩85	—	—	—
7.9%	₩262	₩115	—	—	—
8.4%	₩274	₩142	—	—	—

Now (TTM)

Market cap: ₩65B
Enterprise value: ₩51B
P/E: 25.4×
P/B: 1.2×
P/S: 0.8×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩4,505	₩3,825	₩5,090	₩4,220	₩5,440
Market cap	₩65B	₩55B	₩73B	₩61B	₩78B
P/E	43.9×	—	110.1×	—	1.3×
P/B	1.2×	1.1×	1.3×	0.9×	1.0×
P/S	0.8×	0.7×	0.9×	1.0×	1.6×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Wave Electronics	25.4×	1.2×	0.8×	—	0.0%
TSE	27.5×	6.1×	5.1×	—	0.2%
Kctech	22.1×	3.4×	4.1×	17.1×	0.5%
Classys	12.7×	3.2×	4.7×	9.9×	3.7%
Park Systems	69.0×	4.7×	8.2×	—	0.2%
DI	42.2×	5.8×	2.6×	—	0.6%
Curiox Biosystems	—	21.3×	182.0×	—	0.0%
Similar companies (median)	27.5×	5.3×	4.9×	13.5×	0.3%

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

Also known as: Wave Electronics / 웨이브일렉트로 / 095270 / KRX:095270

Source: KRX statistical information