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S Connect

096630 · KOSDAQ · ₩096630 · 에스코넥

₩1,460▼ ₩11 (0.75%)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

₩181

vs the current price (₩1,460)

Enterprise value
₩23B
Equity value
₩2.9B
WACC
9.9%

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 is 88% 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 ₩1,460, the model needs an operating margin of 3.2% every year (it uses 2.4%).
  • Or revenue growth +50.8 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −4.9% to 4.8% 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.
  • 81% 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.

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
₩181
−87.6%
Bull
₩4,958
+239.6%

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 (2.4%).

Revenue growth

  • 11.6%

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

    Default: the last 3 years' revenue growth (11.6% a year, annual reports), fading to 3% by year 5.

  • 9.5%

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

    Default: the last 3 years' revenue growth (11.6% 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 (11.6% a year, annual reports), fading to 3% by year 5.

  • 5.2%

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

    Default: the last 3 years' revenue growth (11.6% 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 (11.6% a year, annual reports), fading to 3% by year 5.

Business

  • 2.4%

    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.

  • 5.1%

    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).

  • 6.4%

    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).

  • 11%

    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.

  • 2

    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 2.7, 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)
₩228B
Net debt (borrowings and leases − cash and deposits)
₩20B
+ Stakes and investments
₩15M
Associates, long-term financial assets and deposits (book value)
Shares
15,876,323
Share price
₩1,460
Market cap
₩23B

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₩275B₩292B₩279B₩254B₩279B₩299B₩314B₩324B
Growth37.4%6.0%−4.5%11.6%9.5%7.3%5.2%3.0%
EBIT₩8B₩4.1B₩13B₩6.1B₩6.7B₩7.2B₩7.5B₩7.8B
EBIT margin2.9%1.4%4.8%2.4%2.4%2.4%2.4%2.4%
After-tax EBIT₩5.8B₩3B₩9.6B₩4.4B₩4.8B₩5.2B₩5.5B₩5.6B
+ Depreciation———₩13B₩14B₩15B₩16B₩17B
− Capital spending₩14B₩20B₩20B₩16B₩18B₩19B₩20B₩21B
− Working capital₩11B−₩8.2B−₩2.2B₩2.9B₩2.7B₩2.2B₩1.7B₩1B
Free cash flow———−₩1.8B−₩1.4B−₩922M−₩326M₩387M
Discount factor———0.9100.8280.7530.6850.623
Present value———−₩1.6B−₩1.2B−₩694M−₩223M₩241M

Terminal value ₩42B, worth ₩26B today: 115% 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 ₩5,442 a share)Now 0.27×₩3,6300.67×₩8,1321.49×₩16,2842.99×

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%
8.9%₩425₩463₩505₩553₩608
9.4%₩273₩301₩332₩366₩404
9.9%₩140₩160₩181₩205₩231
10.4%₩22₩35₩50₩65₩82
10.9%—————

Now (TTM)

Market cap
₩23B
Enterprise value
₩42B
P/E
1.2×
P/B
0.3×
P/S
0.1×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,990₩3,260₩8,435₩4,715₩9,525
Market cap₩47B₩52B₩134B₩75B₩151B
P/E1.3×——18.1×—
P/B0.5×0.9×1.8×1.6×3.8×
P/S0.2×0.2×0.5×0.4×0.8×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
S Connect1.2×0.3×0.1×—0.0%
Samsung Electronics8.8×2.3×2.7×—0.7%
LG Electronics23.6×0.9×0.3×—0.9%
Hanwha Vision21.8×2.7×1.4×—0.0%
RFHIC39.7×3.5×6.5×—0.8%
KMW—4.9×7.9×—0.0%
Intellian Technologies12.9×2.0×1.6×—0.4%
Similar companies (median)21.8×2.5×2.1×—0.6%

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

Also known as: S Connect / 에스코넥 / 096630 / KRX:096630

Source: KRX statistical information