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AJ Networks

095570 · KOSPI · ₩095570 · AJ네트웍스

₩3,980▼ ₩40 (1.00%)End-of-day · Oct 30, 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

₩19,443

vs the current price (₩3,980)

Enterprise value
₩1.9T
Equity value
₩880B
WACC
4.5%

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 389% 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 ₩3,980, the model needs an operating margin of 4.5% every year (it uses 6.8%).
  • Or revenue growth −9.0 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 3.3× against a typical 8.1× 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
₩19,443
+388.5%
Bull
₩86,407
+2,071.0%

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 (6.8%).

Revenue growth

  • -4%

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

    Default: the last 3 years' revenue growth (-4% a year, annual reports), fading to 3% by year 5.

  • -2.2%

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

    Default: the last 3 years' revenue growth (-4% a year, annual reports), fading to 3% by year 5.

  • -0.5%

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

    Default: the last 3 years' revenue growth (-4% 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 (-4% 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 (-4% a year, annual reports), fading to 3% by year 5.

Business

  • 6.8%

    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.

  • 4.1%

    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).

  • 5.2%

    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).

  • -1%

    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.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.6

    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 0.04, 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.

  • 5.51%

    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)
₩1.2T
Net debt (borrowings and leases − cash and deposits)
₩1.1T
+ Stakes and investments
₩52B
Associates, long-term financial assets and deposits (book value)
Shares
45,252,759
Share price
₩3,980
Market cap
₩180B

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₩1T₩1T₩1.1T₩1.1T₩1.1T₩1.1T₩1.1T₩1.1T
Growth−17.1%1.2%5.5%−4.0%−2.2%−0.5%1.3%3.0%
EBIT₩78B₩73B₩72B₩76B₩75B₩74B₩75B₩78B
EBIT margin7.8%7.2%6.7%6.8%6.8%6.8%6.8%6.8%
After-tax EBIT₩57B₩53B₩52B₩55B₩54B₩54B₩55B₩56B
+ Depreciation———₩46B₩45B₩45B₩45B₩47B
− Capital spending₩77B₩54B₩27B₩58B₩57B₩57B₩58B₩59B
− Working capital₩27B−₩219B₩251B₩468M₩247M₩55M−₩142M−₩332M
Free cash flow———₩43B₩42B₩42B₩43B₩44B
Discount factor———0.9570.9160.8770.8400.804
Present value———₩41B₩38B₩37B₩36B₩35B

Terminal value ₩2.1T, worth ₩1.7T 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 ₩10,729 a share)Now 0.37×₩4,4060.41×₩5,3740.50×₩8,6030.80×
Price / earnings (last 12 months: ₩1,215 a share)Now 3.27×₩4,4203.64×₩9,9038.15×₩16,04313.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,502 a share)Now 1.59×₩9,1003.64×₩20,3878.15×₩33,02913.2×

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%
3.5%₩20,957₩31,271₩48,610₩83,857—
4.0%₩13,476₩20,192₩30,320₩47,347₩81,958
4.5%₩8,155₩12,848₩19,443₩29,390₩46,111
5.0%₩4,177₩7,625₩12,234₩18,712₩28,481
5.5%₩1,092₩3,720₩7,107₩11,635₩17,997

Now (TTM)

Market cap
₩180B
Enterprise value
₩1.2T
P/E
3.3×
P/B
0.4×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,660₩4,305₩4,980₩5,720₩5,410
Market cap₩211B₩195B₩225B₩259B₩245B
P/E7.4×9.0×13.7×29.5×3.2×
P/B0.5×0.4×0.5×0.7×0.7×
P/S0.2×0.2×0.2×0.2×0.2×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
AJ Networks3.3×0.4×0.2×—0.0%
Coway10.8×1.9×1.4×—0.0%
Lotte rental16.1×1.2×0.6×—2.3%
Cuckoo Homesys3.7×0.5×0.5×—5.2%
Socar—1.7×0.8×—0.9%
Q AID—4.8×2.8×—0.0%
A One Cubetech————0.0%
Similar companies (median)10.8×1.7×0.8×—0.5%

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

Also known as: AJ Networks / AJ네트웍스 / 095570 / KRX:095570

Source: KRX statistical information