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Micro Contact Solution

098120 · KOSDAQ · ₩098120 · 마이크로컨텍솔

₩55,700▲ ₩1,700 (3.15%)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

₩29,592

vs the current price (₩55,700)

Enterprise value
₩223B
Equity value
₩246B
WACC
9.3%

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 47% 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 ₩55,700, the model needs an operating margin of 26.6% every year (it uses 14.5%).
  • Or revenue growth +19.0 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 17.1× against a typical 9.4× 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
₩20,324
−63.5%
Base
₩29,592
−46.9%
Bull
₩43,714
−21.5%

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 (14.5%).

Revenue growth

  • 18%

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

    Default: the last 3 years' revenue growth (18% a year, annual reports), fading to 3% by year 5.

  • 14.2%

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

    Default: the last 3 years' revenue growth (18% a year, annual reports), fading to 3% by year 5.

  • 10.5%

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

    Default: the last 3 years' revenue growth (18% a year, annual reports), fading to 3% by year 5.

  • 6.7%

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

    Default: the last 3 years' revenue growth (18% 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 (18% a year, annual reports), fading to 3% by year 5.

Business

  • 14.5%

    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.

  • 5.8%

    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).

  • 7.3%

    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).

  • 17.3%

    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.

  • 4.08%

    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.

  • 0.94

    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 0.91, 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)
₩122B
Net debt (borrowings and leases − cash and deposits)
−₩23B
− Minority interests
₩200M
Shares
8,312,766
Share price
₩55,700
Market cap
₩463B

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₩65B₩70B₩100B₩144B₩165B₩182B₩194B₩200B
Growth6.2%7.5%44.0%18.0%14.2%10.5%6.7%3.0%
EBIT₩7.4B₩10B₩18B₩21B₩24B₩26B₩28B₩29B
EBIT margin11.5%14.6%17.7%14.5%14.5%14.5%14.5%14.5%
After-tax EBIT₩5.4B₩7.4B₩13B₩15B₩17B₩19B₩20B₩21B
+ Depreciation———₩8.4B₩9.5B₩11B₩11B₩12B
− Capital spending₩3B₩5.3B₩9.6B₩11B₩12B₩13B₩14B₩15B
− Working capital−₩11B₩8B₩85M₩3.8B₩3.5B₩3B₩2.1B₩1B
Free cash flow———₩9.2B₩11B₩13B₩15B₩17B
Discount factor———0.9150.8380.7670.7020.642
Present value———₩8.4B₩9.5B₩10B₩11B₩11B

Terminal value ₩269B, worth ₩173B today: 78% 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 ₩11,705 a share)Now 4.76×₩10,6440.91×₩18,4821.58×₩35,1133.00×
Price / earnings (last 12 months: ₩3,263 a share)Now 17.1×₩21,1976.50×₩30,6539.40×₩47,01514.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩5,485 a share)Now 10.2×₩35,6356.50×₩51,5319.40×₩79,03714.4×

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%
8.3%₩30,923₩32,458₩34,236₩36,321₩38,800
8.8%₩28,948₩30,249₩31,740₩33,468₩35,494
9.3%₩27,216₩28,328₩29,592₩31,042₩32,720
9.8%₩25,684₩26,643₩27,724₩28,952₩30,361
10.3%₩24,321₩25,153₩26,085₩27,136₩28,329

Now (TTM)

Market cap
₩463B
Enterprise value
₩439B
P/E
17.1×
P/B
4.8×
P/S
3.8×
EV/EBITDA
—
Dividend yield
0.2%

Over time (at each year end)

20252024202320222021
Price₩16,880₩5,120₩13,970₩5,210₩14,100
Market cap₩140B₩43B₩116B₩43B₩117B
P/E8.3×4.0×15.7×6.1×15.6×
P/B1.7×0.7×2.1×0.9×2.8×
P/S1.4×0.6×1.8×0.7×1.9×
EV/EBITDA—————
Dividend yield0.6%1.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Micro Contact Solution17.1×4.8×3.8×—0.2%
Samsung Electro-Mechanics95.9×9.4×7.8×—0.2%
Doosan37.2×5.2×0.7×—0.4%
Hanwha Systems69.5×2.7×3.0×—0.8%
LG Innotek12.4×1.3×0.3×—0.5%
Daeduck Electronics44.9×7.0×5.1×—0.4%
Isupetasys33.8×7.9×5.2×—0.0%
Similar companies (median)41.1×6.1×4.0×—0.4%

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

Also known as: Micro Contact Solution / 마이크로컨텍솔 / 098120 / KRX:098120

Source: KRX statistical information