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Abov Semiconductor

102120 · KOSDAQ · ₩102120 · 어보브반도체

₩6,710▲ ₩170 (2.60%)End-of-day · Oct 27, 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

₩1,606

vs the current price (₩6,710)

Enterprise value
₩73B
Equity value
₩29B
WACC
8.2%

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 is 76% 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 ₩6,710, the model needs an operating margin of 7.2% every year (it uses 4.1%).
  • Or revenue growth +39.9 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −6.3% to 10.6% 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.
  • Today's P/E is 12.5× against a typical 17.3× 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
₩1,606
−76.1%
Bull
₩7,296
+8.7%

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 (4.1%).

Revenue growth

  • 0.2%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 0.9%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 1.6%

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

    Default: the last 3 years' revenue growth (0.2% a year, annual reports), fading to 3% by year 5.

  • 2.3%

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

    Default: the last 3 years' revenue growth (0.2% 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 (0.2% a year, annual reports), fading to 3% by year 5.

Business

  • 4.1%

    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.

  • 5.5%

    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).

  • 6.9%

    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).

  • 22.3%

    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.

  • 4.11%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.9

    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 0.85, 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.

  • 5.61%

    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)
₩253B
Net debt (borrowings and leases − cash and deposits)
₩25B
+ Stakes and investments
₩15B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩34B
Shares
17,780,753
Share price
₩6,710
Market cap
₩119B

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₩232B₩232B₩244B₩253B₩256B₩260B₩266B₩274B
Growth−4.2%−0.1%5.2%0.2%0.9%1.6%2.3%3.0%
EBIT−₩15B−₩5.1B₩10B₩10B₩10B₩11B₩11B₩11B
EBIT margin−6.3%−2.2%4.2%4.1%4.1%4.1%4.1%4.1%
After-tax EBIT−₩11B−₩3.7B₩7.4B₩7.5B₩7.6B₩7.7B₩7.9B₩8.1B
+ Depreciation———₩14B₩14B₩14B₩15B₩15B
− Capital spending₩15B₩19B₩15B₩17B₩18B₩18B₩18B₩19B
− Working capital−₩21B₩30B−₩17B₩113M₩509M₩912M₩1.3B₩1.8B
Free cash flow———₩3.9B₩3.5B₩3.2B₩2.8B₩2.5B
Discount factor———0.9240.8540.7890.7300.674
Present value———₩3.6B₩3B₩2.5B₩2.1B₩1.7B

Terminal value ₩89B, worth ₩60B today: 82% 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 ₩7,005 a share)Now 0.96×₩8,4561.21×₩11,8741.70×₩16,6102.37×
Price / earnings (last 12 months: ₩539 a share)Now 12.5×₩4,1167.64×₩9,29417.3×₩35,21065.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩707 a share)Now 9.49×₩5,4017.64×₩12,19517.3×₩46,20165.4×

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%
7.2%₩2,145₩2,291₩2,464₩2,671₩2,924
7.7%₩1,762₩1,871₩1,997₩2,145₩2,322
8.2%₩1,433₩1,514₩1,606₩1,712₩1,836
8.7%₩1,148₩1,208₩1,274₩1,349₩1,436
9.2%₩899₩942₩989₩1,042₩1,101

Now (TTM)

Market cap
₩119B
Enterprise value
₩143B
P/E
12.5×
P/B
1.0×
P/S
0.5×
EV/EBITDA
—
Dividend yield
3.0%

Over time (at each year end)

20252024202320222021
Price₩12,090₩7,570₩13,810₩8,100₩14,250
Market cap₩215B₩135B₩246B₩144B₩253B
P/E21.3×50.8×—11.6×18.5×
P/B1.8×1.2×2.3×1.2×2.3×
P/S0.9×0.6×1.1×0.6×1.5×
EV/EBITDA—————
Dividend yield1.7%2.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Abov Semiconductor12.5×1.0×0.5×—3.0%
SK hynix6.0×3.7×5.2×—0.2%
DB HiTek11.9×1.7×2.7×—0.9%
Fadu—37.7×13.2×—0.0%
Hana Micron13.8×4.3×1.1×—0.2%
Jeju Semiconductor9.5×4.9×3.3×—0.0%
SFA Semicon—3.0×3.2×—0.0%
Similar companies (median)10.7×4.0×3.2×—0.1%

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

Also known as: Abov Semiconductor / 어보브반도체 / 102120 / KRX:102120

Source: KRX statistical information