STO에스티오
098660 · KOSDAQ · ₩098660 · 에스티오
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
- −₩6.4B
- Equity value
- −₩41B
- WACC
- 5.2%
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 ₩1,580, the model needs an operating margin of 4.6% every year (it uses 0.8%).
- 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
- —
- Bull
- ₩412
- −73.9%
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Margin path
Every year uses the cycle-average margin (0.8%).
Revenue growth
- -0.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
- 0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
- 1.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% a year, annual reports), fading to 3% by year 5.
- 2.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.8% 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 (-0.8% a year, annual reports), fading to 3% by year 5.
Business
- 0.8%
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.
- 2.7%
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).
- 3.4%
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).
- 28.9%
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 -0.01, 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)
- ₩71B
- Net debt (borrowings and leases − cash and deposits)
- ₩36B
- + Stakes and investments
- ₩818M
- Associates, long-term financial assets and deposits (book value)
- Shares
- 12,500,976
- Share price
- ₩1,580
- Market cap
- ₩20B
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 | ₩74B | ₩70B | ₩71B | ₩71B | ₩71B | ₩72B | ₩73B | ₩76B |
| Growth | 1.2% | −5.2% | 1.8% | −0.8% | 0.2% | 1.1% | 2.1% | 3.0% |
| EBIT | ₩3.5B | ₩512M | −₩1.4B | ₩567M | ₩569M | ₩575M | ₩587M | ₩604M |
| EBIT margin | 4.8% | 0.7% | −2.0% | 0.8% | 0.8% | 0.8% | 0.8% | 0.8% |
| After-tax EBIT | ₩2.6B | ₩371M | −₩1B | ₩411M | ₩412M | ₩417M | ₩425M | ₩438M |
| + Depreciation | — | — | — | ₩1.9B | ₩1.9B | ₩1.9B | ₩2B | ₩2B |
| − Capital spending | ₩3.4B | ₩2.3B | ₩1.7B | ₩2.4B | ₩2.4B | ₩2.4B | ₩2.5B | ₩2.6B |
| − Working capital | −₩620M | ₩2.9B | −₩2B | −₩165M | ₩41M | ₩226M | ₩436M | ₩636M |
| Free cash flow | — | — | — | ₩80M | −₩126M | −₩312M | −₩524M | −₩727M |
| Discount factor | — | — | — | 0.951 | 0.904 | 0.860 | 0.817 | 0.777 |
| Present value | — | — | — | ₩76M | −₩114M | −₩268M | −₩428M | −₩565M |
Terminal value −₩6.5B, worth −₩5.1B today: 80% 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 ₩1,638 a share)Now 0.96× | ₩1,4700.90× | ₩1,7131.05× | ₩2,1071.29× |
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% |
|---|---|---|---|---|---|
| 4.2% | — | — | — | — | — |
| 4.7% | — | — | — | — | — |
| 5.2% | — | — | — | — | — |
| 5.7% | — | — | — | — | — |
| 6.2% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩20B
- Enterprise value
- ₩44B
- P/E
- —
- P/B
- 1.0×
- P/S
- 0.3×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩1,779 | ₩2,900 | ₩2,210 | ₩2,420 | ₩2,505 |
| Market cap | ₩22B | ₩36B | ₩28B | ₩30B | ₩31B |
| P/E | — | — | 13.7× | 18.9× | 92.9× |
| P/B | 1.0× | 1.3× | 0.9× | 1.0× | 1.1× |
| P/S | 0.3× | 0.5× | 0.4× | 0.4× | 0.5× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | 1.4% | — | — | — |
Versus similar companies
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: STO / 에스티오 / 098660 / KRX:098660
Source: KRX statistical information