KOSPI · 117580 · Utilities · ₩117580

Daesung Energy대성에너지

117580 · KOSPI · ₩117580 · 대성에너지

₩6,970 ₩0 (0.00%)End-of-day · Oct 28, 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

₩9,770

vs the current price (₩6,970)

Enterprise value: ₩274B
Equity value: ₩269B
WACC: 7.2%

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 40% 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 ₩6,970, the model needs an operating margin of 1.7% every year (it uses 2.3%).
Or revenue growth −6.1 points a year higher than assumed in each of the 5 years.
Today's P/E is 6.5× against a typical 12.4× 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: ₩9,770; +40.2%
Bull: ₩28,253; +305.3%

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 (2.3%).

Revenue growth

Revenue growth, year 1-0.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.1% 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 (-0.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin2.3%
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.
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 & amortisation2.2%
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 spending2.7%
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 capital-4.3%
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.
Beta0.6
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 -0.19, 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): ₩977B
Net debt (borrowings and leases − cash and deposits): ₩12B
+ Stakes and investments: ₩6.7B; Associates, long-term financial assets and deposits (book value)
Shares: 27,500,000
Share price: ₩6,970
Market cap: ₩192B

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	₩999B	₩994B	₩1T	₩976B	₩983B	₩997B	₩1T	₩1T
Growth	−2.1%	−0.5%	2.4%	−0.1%	0.7%	1.5%	2.2%	3.0%
EBIT	₩20B	₩21B	₩30B	₩22B	₩23B	₩23B	₩23B	₩24B
EBIT margin	2.0%	2.1%	3.0%	2.3%	2.3%	2.3%	2.3%	2.3%
After-tax EBIT	₩15B	₩15B	₩22B	₩16B	₩16B	₩17B	₩17B	₩18B
+ Depreciation	—	—	—	₩21B	₩22B	₩22B	₩22B	₩23B
− Capital spending	₩28B	₩32B	₩22B	₩26B	₩27B	₩27B	₩28B	₩28B
− Working capital	₩17B	−₩46B	₩18B	₩42M	−₩294M	−₩634M	−₩943M	−₩1.3B
Free cash flow	—	—	—	₩11B	₩12B	₩12B	₩13B	₩14B
Discount factor	—	—	—	0.933	0.870	0.812	0.758	0.707
Present value	—	—	—	₩11B	₩10B	₩10B	₩9.7B	₩9.6B

Terminal value ₩317B, worth ₩224B 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:

	Low	Typical	High
Price / book (book value ₩13,138 a share)Now 0.53×	₩7,9910.61×	₩9,3880.71×	₩12,8510.98×
Price / earnings (last 12 months: ₩1,068 a share)Now 6.53×	₩8,6048.06×	₩13,25412.4×	₩32,86030.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩447 a share)Now 15.6×	₩3,6058.06×	₩5,55312.4×	₩13,76730.8×

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%
6.2%	₩9,891	₩10,944	₩12,249	₩13,909	₩16,093
6.7%	₩8,970	₩9,831	₩10,876	₩12,173	₩13,824
7.2%	₩8,198	₩8,915	₩9,770	₩10,809	₩12,098
7.7%	₩7,543	₩8,147	₩8,859	₩9,709	₩10,742
8.2%	₩6,979	₩7,495	₩8,096	₩8,803	₩9,648

Now (TTM)

Market cap: ₩192B
Enterprise value: ₩186B
P/E: 6.5×
P/B: 0.5×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 3.6%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩8,040	₩8,490	₩8,120	₩9,140	₩9,150
Market cap	₩221B	₩233B	₩223B	₩251B	₩252B
P/E	9.0×	13.4×	15.1×	206.1×	20.1×
P/B	0.6×	0.7×	0.7×	0.8×	0.8×
P/S	0.2×	0.2×	0.2×	0.2×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	3.1%	2.9%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Daesung Energy	6.5×	0.5×	0.2×	—	3.6%
Korea Electric Power	2.3×	0.4×	0.2×	5.7×	5.4%
Korea Gas	6.0×	0.3×	0.1×	8.6×	3.1%
Korea District Heating	2.3×	0.3×	0.2×	4.8×	8.6%
SGC Energy	—	0.7×	0.2×	—	3.9%
Samchully	3.2×	0.2×	0.1×	—	2.5%
Seoul City Gas	11.4×	0.2×	0.1×	—	0.0%
Similar companies (median)	3.2×	0.3×	0.2×	5.7×	3.5%

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

Also known as: Daesung Energy / 대성에너지 / 117580 / KRX:117580

Source: KRX statistical information