KOSDAQ · 115500 · IT services · ₩115500

Korea Computer & Systems케이씨에스

115500 · KOSDAQ · ₩115500 · 케이씨에스

₩8,840▼ ₩760 (7.92%)End-of-day · Oct 29, 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

₩1,617

vs the current price (₩8,840)

Enterprise value: ₩16B
Equity value: ₩19B
WACC: 8.8%

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 82% 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 ₩8,840, the model needs an operating margin of 44.9% every year (it uses 6.9%).
Or revenue growth +52.8 points a year higher than assumed in each of the 5 years.
Margins ranged from 1.3% to 10.5% 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.
46% 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 47.6× against a typical 47.6× 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: ₩1,046; −88.2%
Base: ₩1,617; −81.7%
Bull: ₩2,539; −71.3%

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 (6.9%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-15.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-15.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-15.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-15.8% 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 (-15.8% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin6.9%
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 & amortisation0.3%
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).
Capital spending0.4%
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).
Working capital9.3%
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

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 rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta0.85
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 0.77, 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)5.58%
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): ₩27B
Net debt (borrowings and leases − cash and deposits): −₩3.5B
+ Stakes and investments: ₩318M; Associates, long-term financial assets and deposits (book value)
Shares: 12,000,000
Share price: ₩8,840
Market cap: ₩106B

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	₩48B	₩30B	₩25B	₩25B	₩23B	₩22B	₩22B	₩23B
Growth	14.5%	−38.1%	−15.8%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩3.2B	₩2B	₩2.1B	₩1.7B	₩1.6B	₩1.5B	₩1.5B	₩1.6B
EBIT margin	6.6%	6.7%	8.3%	6.9%	6.9%	6.9%	6.9%	6.9%
After-tax EBIT	₩2.3B	₩1.4B	₩1.5B	₩1.2B	₩1.1B	₩1.1B	₩1.1B	₩1.1B
+ Depreciation	—	—	—	₩74M	₩69M	₩66M	₩66M	₩68M
− Capital spending	₩14M	₩195M	₩97M	₩98M	₩92M	₩88M	₩88M	₩91M
− Working capital	₩3.2B	−₩3B	₩2.4B	−₩253M	−₩153M	−₩74M	−₩4.1M	₩61M
Free cash flow	—	—	—	₩1.5B	₩1.3B	₩1.2B	₩1.1B	₩1.1B
Discount factor	—	—	—	0.919	0.845	0.777	0.715	0.657
Present value	—	—	—	₩1.3B	₩1.1B	₩899M	₩775M	₩691M

Terminal value ₩16B, worth ₩11B today: 69% 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 ₩1,522 a share)Now 5.81×	₩5,7173.76×	₩7,8885.18×	₩11,0357.25×
Price / earnings (last 12 months: ₩186 a share)Now 47.6×	₩5,35528.8×	₩8,84047.6×	₩12,76968.7×
P/E on run-rate earnings (Q2 2026 × 4: ₩147 a share)Now 60.1×	₩4,23928.8×	₩6,99847.6×	₩10,10868.7×

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%
7.8%	₩1,678	₩1,749	₩1,832	₩1,932	₩2,051
8.3%	₩1,587	₩1,647	₩1,716	₩1,797	₩1,893
8.8%	₩1,508	₩1,559	₩1,617	₩1,684	₩1,762
9.3%	₩1,439	₩1,482	₩1,531	₩1,587	₩1,652
9.8%	₩1,377	₩1,414	₩1,456	₩1,504	₩1,558

Now (TTM)

Market cap: ₩106B
Enterprise value: ₩103B
P/E: 47.6×
P/B: 5.8×
P/S: 3.9×
EV/EBITDA: —
Dividend yield: 2.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,770	₩14,350	₩6,920	₩5,240	₩6,900
Market cap	₩117B	₩172B	₩83B	₩63B	₩83B
P/E	46.4×	86.1×	30.0×	75.8×	30.9×
P/B	6.0×	9.1×	4.3×	3.4×	4.0×
P/S	4.7×	5.8×	1.7×	1.5×	2.1×
EV/EBITDA	—	—	—	—	—
Dividend yield	1.8%	1.3%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Korea Computer & Systems	47.6×	5.8×	3.9×	—	2.0%
Samsung SDS	24.6×	1.5×	1.1×	—	1.5%
LG CNS	15.5×	2.5×	1.2×	—	2.4%
Itcenglobal	7.0×	3.0×	0.0×	—	0.0%
DB	7.2×	1.0×	0.7×	16.4×	0.0%
Lotte Innovate	15.0×	0.6×	0.2×	—	4.1%
Shinsegae Information & Communication	6.3×	0.4×	0.3×	0.8×	0.0%
Similar companies (median)	11.1×	1.3×	0.5×	8.6×	0.8%

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

Also known as: Korea Computer & Systems / 케이씨에스 / 115500 / KRX:115500

Source: KRX statistical information