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LX Semicon

108320 · KOSPI · ₩108320 · LX세미콘

₩31,400▲ ₩850 (2.78%)End-of-day · Oct 28, 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

₩114,786

vs the current price (₩31,400)

Enterprise value
₩1.4T
Equity value
₩1.9T
WACC
7.8%

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 266% 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 ₩31,400, the model needs an operating margin of 0.8% every year (it uses 9.3%).
  • Margins ranged from 6.6% to 19.5% 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 8.8× against a typical 8.8× 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
₩81,141
+158.4%
Base
₩114,786
+265.6%
Bull
₩171,263
+445.4%

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 (9.3%).

Revenue growth

  • -8.2%

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

    Default: the last 3 years' revenue growth (-8.2% a year, annual reports), fading to 3% by year 5.

  • -5.4%

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

    Default: the last 3 years' revenue growth (-8.2% a year, annual reports), fading to 3% by year 5.

  • -2.6%

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

    Default: the last 3 years' revenue growth (-8.2% 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 (-8.2% 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 (-8.2% a year, annual reports), fading to 3% by year 5.

Business

  • 9.3%

    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.

  • 1.8%

    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).

  • 2.3%

    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).

  • 21.1%

    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.

  • 4.11%

    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.

  • 0.68

    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 0.52, 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)
₩1.6T
Net debt (borrowings and leases − cash and deposits)
−₩436B
+ Stakes and investments
₩40B
Associates, long-term financial assets and deposits (book value)
Shares
16,264,300
Share price
₩31,400
Market cap
₩511B

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₩1.9T₩1.9T₩1.6T₩1.4T₩1.4T₩1.3T₩1.3T₩1.4T
Growth−10.3%−1.9%−12.1%−8.2%−5.4%−2.6%0.2%3.0%
EBIT₩129B₩167B₩109B₩134B₩127B₩124B₩124B₩128B
EBIT margin6.8%9.0%6.6%9.3%9.3%9.3%9.3%9.3%
After-tax EBIT₩94B₩121B₩79B₩97B₩92B₩90B₩90B₩93B
+ Depreciation———₩26B₩25B₩24B₩24B₩25B
− Capital spending₩53B₩42B₩29B₩33B₩31B₩31B₩31B₩32B
− Working capital−₩106B−₩17B₩1.3B−₩27B−₩16B−₩7.5B₩562M₩8.4B
Free cash flow———₩117B₩102B₩91B₩83B₩77B
Discount factor———0.9270.8600.7970.7390.685
Present value———₩109B₩88B₩72B₩61B₩53B

Terminal value ₩1.5T, worth ₩1T today: 72% 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 ₩69,594 a share)Now 0.45×₩50,4000.72×₩85,9831.24×₩174,6312.51×
Price / earnings (last 12 months: ₩3,570 a share)Now 8.80×₩16,2234.54×₩31,4008.80×₩55,16615.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,399 a share)Now 7.14×₩19,9914.54×₩38,6938.80×₩67,98015.5×

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%
6.8%₩119,905₩125,272₩131,734₩139,667₩149,645
7.3%₩112,951₩117,309₩122,470₩128,682₩136,309
7.8%₩107,012₩110,597₩114,786₩119,746₩125,717
8.3%₩101,880₩104,864₩108,309₩112,334₩117,099
8.8%₩97,400₩99,909₩102,776₩106,085₩109,950

Now (TTM)

Market cap
₩511B
Enterprise value
₩39B
P/E
8.8×
P/B
0.5×
P/S
0.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩49,150₩56,900₩86,800₩71,700₩167,300
Market cap₩799B₩925B₩1.4T₩1.2T₩2.7T
P/E9.7×7.1×13.9×5.0×9.2×
P/B0.7×0.9×1.4×1.2×3.4×
P/S0.5×0.5×0.7×0.6×1.4×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
LX Semicon8.8×0.5×0.3×—0.0%
SK hynix6.7×4.1×5.7×—0.2%
DB HiTek12.6×1.8×2.8×—0.8%
Fadu—40.1×14.0×—0.0%
Hana Micron14.4×4.5×1.2×—0.2%
Jeju Semiconductor10.4×5.4×3.6×—0.0%
SFA Semicon—3.1×3.3×—0.0%
Similar companies (median)11.5×4.3×3.4×—0.1%

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

Also known as: LX Semicon / LX세미콘 / 108320 / KRX:108320

Source: KRX statistical information