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Dong in Entech

111380 · KOSPI · ₩111380 · 동인기연

₩11,870▼ ₩140 (1.17%)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

₩70,287

vs the current price (₩11,870)

Enterprise value
₩497B
Equity value
₩431B
WACC
5.8%

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 492% 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 ₩11,870, the model needs an operating margin of 4.5% every year (it uses 10.7%).
  • Today's P/E is 2.9× against a typical 6.0× 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
₩33,488
+182.1%
Base
₩70,287
+492.1%
Bull
₩144,348
+1,116.1%

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 (10.7%).

Revenue growth

  • 6.3%

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

    Default: the last 2 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 5.5%

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

    Default: the last 2 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 4.7%

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

    Default: the last 2 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

  • 3.8%

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

    Default: the last 2 years' revenue growth (6.3% 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 2 years' revenue growth (6.3% a year, annual reports), fading to 3% by year 5.

Business

  • 10.7%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 3 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.

  • 4.7%

    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).

  • 5.8%

    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).

  • 38%

    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.

  • 4.03%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 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 0.21, 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.

  • 5.53%

    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)
₩258B
Net debt (borrowings and leases − cash and deposits)
₩66B
− Minority interests
₩421M
Shares
6,128,000
Share price
₩11,870
Market cap
₩73B

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₩216B₩227B₩244B₩274B₩289B₩303B₩314B₩324B
Growth—4.9%7.7%6.3%5.5%4.7%3.8%3.0%
EBIT₩28B₩21B₩23B₩29B₩31B₩32B₩34B₩35B
EBIT margin13.1%9.3%9.3%10.7%10.7%10.7%10.7%10.7%
After-tax EBIT₩20B₩15B₩16B₩21B₩22B₩23B₩24B₩25B
+ Depreciation———₩13B₩14B₩14B₩15B₩15B
− Capital spending₩10B₩14B₩16B₩16B₩17B₩18B₩18B₩19B
− Working capital—₩22B−₩4.7B₩6.2B₩5.7B₩5.2B₩4.4B₩3.6B
Free cash flow———₩12B₩14B₩15B₩17B₩18B
Discount factor———0.9460.8940.8460.8000.756
Present value———₩11B₩12B₩13B₩13B₩14B

Terminal value ₩574B, worth ₩434B today: 87% 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 ₩27,577 a share)Now 0.43×₩13,2710.48×₩16,9540.61×₩25,1860.91×
Price / earnings (last 12 months: ₩4,158 a share)Now 2.85×₩18,4254.43×₩24,9636.00×₩33,2678.00×
P/E on run-rate earnings (Q2 2026 × 4: ₩5,527 a share)Now 2.15×₩24,4884.43×₩33,1766.00×₩44,2138.00×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2024, 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%
4.8%₩77,596₩87,534₩101,055₩120,549₩151,132
5.3%₩66,666₩73,884₩83,299₩96,107₩114,573
5.8%₩58,048₩63,457₩70,287₩79,196₩91,315
6.3%₩51,082₩55,234₩60,347₩66,802₩75,221
6.8%₩45,335₩48,587₩52,507₩57,332₩63,425

Now (TTM)

Market cap
₩73B
Enterprise value
₩139B
P/E
2.9×
P/B
0.4×
P/S
0.3×
EV/EBITDA
—
Dividend yield
5.7%

Over time (at each year end)

202520242023
Price₩13,730₩18,260₩21,250
Market cap₩84B₩112B₩130B
P/E7.3×6.4×6.4×
P/B0.6×0.8×1.0×
P/S0.3×0.5×0.6×
EV/EBITDA———
Dividend yield5.0%3.4%—

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dong in Entech2.9×0.4×0.3×—5.7%
F&F4.5×1.1×1.2×—4.4%
LF5.6×0.4×0.3×4.6×3.2%
Chokwang Leather44.5×0.7×4.9×59.3×0.0%
Handsome6.9×0.3×0.3×—0.0%
Hansae9.4×0.4×0.2×—0.0%
JS4.0×0.6×0.2×—5.3%
Similar companies (median)6.3×0.5×0.3×31.9×1.6%

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

Also known as: Dong in Entech / 동인기연 / 111380 / KRX:111380

Source: KRX statistical information