KOSDAQ · 109860 · Steel & Materials · ₩109860

Dongil Metal동일금속

109860 · KOSDAQ · ₩109860 · 동일금속

₩7,160▼ ₩20 (0.28%)End-of-day · Oct 30, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩4,382

vs the current price (₩7,160)

Enterprise value: ₩43B
Equity value: ₩38B
WACC: 7.1%

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 39% 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 ₩7,160, the model needs an operating margin of 6.8% every year (it uses 4.9%).
Or revenue growth +33.7 points a year higher than assumed in each of the 5 years.
Margins ranged from 0.7% to 12.5% 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.
40% 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.
Today's P/E is 13.1× against a typical 10.6× 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: ₩1,405; −80.4%
Base: ₩4,382; −38.8%
Bull: ₩10,145; +41.7%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (4.9%).

Revenue growth

Revenue growth, year 1-6.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.9%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1.6%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending4.1%
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).
Working capital40%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.01%
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.
Beta0.6
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 0.1, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩105B
Net debt (borrowings and leases − cash and deposits): ₩4.7B
− Minority interests: ₩163M
Shares: 8,700,000
Share price: ₩7,160
Market cap: ₩62B

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	₩110B	₩86B	₩92B	₩98B	₩94B	₩93B	₩93B	₩96B
Growth	−0.9%	−22.1%	6.7%	−6.3%	−4.0%	−1.6%	0.7%	3.0%
EBIT	₩12B	₩618M	₩1.4B	₩4.8B	₩4.6B	₩4.5B	₩4.6B	₩4.7B
EBIT margin	11.2%	0.7%	1.6%	4.9%	4.9%	4.9%	4.9%	4.9%
After-tax EBIT	₩9B	₩448M	₩1B	₩3.5B	₩3.3B	₩3.3B	₩3.3B	₩3.4B
+ Depreciation	₩1.8B	—	—	₩1.6B	₩1.5B	₩1.5B	₩1.5B	₩1.5B
− Capital spending	₩3.7B	₩3.4B	₩4.4B	₩4B	₩3.9B	₩3.8B	₩3.8B	₩3.9B
− Working capital	−₩3.4B	−₩3.9B	−₩8.3B	−₩2.6B	−₩1.6B	−₩602M	₩259M	₩1.1B
Free cash flow	₩10B	—	—	₩3.7B	₩2.6B	₩1.6B	₩722M	−₩108M
Discount factor	—	—	—	0.934	0.872	0.815	0.761	0.710
Present value	—	—	—	₩3.4B	₩2.2B	₩1.3B	₩549M	−₩77M

Terminal value ₩50B, worth ₩36B today: 83% 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 ₩18,066 a share)Now 0.40×	₩7,5170.42×	₩9,5270.53×	₩24,8171.37×
Price / earnings (last 12 months: ₩545 a share)Now 13.1×	₩4,2567.81×	₩5,78210.6×	₩7,44013.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩470 a share)Now 15.2×	₩3,6717.81×	₩4,98810.6×	₩6,41813.7×

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%
6.1%	₩5,205	₩5,402	₩5,643	₩5,947	₩6,344
6.6%	₩4,656	₩4,787	₩4,943	₩5,134	₩5,373
7.1%	₩4,198	₩4,283	₩4,382	₩4,499	₩4,641
7.6%	₩3,811	₩3,864	₩3,923	₩3,991	₩4,070
8.1%	₩3,480	₩3,509	₩3,541	₩3,575	₩3,613

Now (TTM)

Market cap: ₩62B
Enterprise value: ₩67B
P/E: 13.1×
P/B: 0.4×
P/S: 0.6×
EV/EBITDA: —
Dividend yield: 4.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩7,930	₩8,100	₩9,000	₩18,250	₩14,400
Market cap	₩69B	₩70B	₩78B	₩159B	₩125B
P/E	13.7×	9.7×	245.6×	11.3×	8.3×
P/B	0.4×	0.5×	0.5×	1.0×	0.9×
P/S	0.8×	0.8×	0.7×	1.4×	1.8×
EV/EBITDA	—	—	4.1×	9.1×	28.8×
Dividend yield	4.0%	4.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Dongil Metal	13.1×	0.4×	0.6×	—	4.5%
POSCO Holdings	16.1×	0.4×	0.3×	7.7×	3.7%
Korea Zinc	18.6×	1.6×	0.9×	—	2.3%
Hyundai Steel	—	0.2×	0.1×	—	1.9%
Poongsan	8.0×	0.7×	0.3×	5.9×	3.0%
SeAH Besteel Holdings	11.5×	0.5×	0.3×	9.2×	4.2%
Sama Aluminium	—	4.0×	2.9×	—	0.0%
Similar companies (median)	13.8×	0.6×	0.3×	7.7×	2.6%

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

Also known as: Dongil Metal / 동일금속 / 109860 / KRX:109860

Source: KRX statistical information