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Formetal

119500 · KOSDAQ · ₩119500 · 포메탈

₩2,670▲ ₩75 (2.89%)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

₩1,480

vs the current price (₩2,670)

Enterprise value
₩14B
Equity value
₩18B
WACC
7.4%

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 45% 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 ₩2,670, the model needs an operating margin of 5.8% every year (it uses 3.1%).
  • Or revenue growth +30.4 points a year higher than assumed in each of the 5 years.
  • 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 17.5× against a typical 21.6× 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
₩635
−76.2%
Base
₩1,480
−44.6%
Bull
₩3,053
+14.4%

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 (3.1%).

Revenue growth

  • -9.8%

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

    Default: the last 3 years' revenue growth (-9.8% a year, annual reports), fading to 3% by year 5.

  • -6.6%

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

    Default: the last 3 years' revenue growth (-9.8% a year, annual reports), fading to 3% by year 5.

  • -3.4%

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

    Default: the last 3 years' revenue growth (-9.8% 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 (-9.8% 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 (-9.8% a year, annual reports), fading to 3% by year 5.

Business

  • 3.1%

    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).

  • 18.2%

    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.

  • 0.6

    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 0.36, 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)
₩50B
Net debt (borrowings and leases − cash and deposits)
−₩3.6B
+ Stakes and investments
₩333M
Associates, long-term financial assets and deposits (book value)
Shares
11,847,232
Share price
₩2,670
Market cap
₩32B

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₩71B₩65B₩51B₩45B₩42B₩40B₩40B₩41B
Growth2.1%−8.4%−21.5%−9.8%−6.6%−3.4%−0.2%3.0%
EBIT₩2.1B₩1.5B₩1.9B₩1.4B₩1.3B₩1.3B₩1.2B₩1.3B
EBIT margin3.0%2.3%3.8%3.1%3.1%3.1%3.1%3.1%
After-tax EBIT₩1.6B₩1.1B₩1.4B₩1B₩939M₩907M₩905M₩932M
+ Depreciation———₩805M₩752M₩726M₩725M₩746M
− Capital spending₩871M₩2.8B₩673M₩1B₩960M₩928M₩926M₩954M
− Working capital₩712M−₩1.9B₩42M−₩884M−₩537M−₩258M−₩15M₩220M
Free cash flow———₩1.7B₩1.3B₩963M₩718M₩505M
Discount factor———0.9310.8670.8070.7510.700
Present value———₩1.6B₩1.1B₩777M₩540M₩353M

Terminal value ₩13B, worth ₩9.3B today: 68% 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 ₩4,366 a share)Now 0.61×₩2,8880.66×₩3,7010.85×₩5,1811.19×
Price / earnings (last 12 months: ₩153 a share)Now 17.5×₩2,67017.5×₩3,30821.6×₩4,62930.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩201 a share)Now 13.3×₩3,51217.5×₩4,35121.6×₩6,08930.3×

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%
6.4%₩1,605₩1,654₩1,713₩1,787₩1,881
6.9%₩1,505₩1,542₩1,585₩1,637₩1,703
7.4%₩1,421₩1,448₩1,480₩1,518₩1,564
7.9%₩1,349₩1,370₩1,393₩1,421₩1,454
8.4%₩1,287₩1,302₩1,320₩1,340₩1,363

Now (TTM)

Market cap
₩32B
Enterprise value
₩28B
P/E
17.5×
P/B
0.6×
P/S
0.6×
EV/EBITDA
—
Dividend yield
2.2%

Over time (at each year end)

20252024202320222021
Price₩3,460₩3,000₩3,775₩3,410₩4,650
Market cap₩41B₩36B₩45B₩40B₩55B
P/E19.0×22.7×23.4×23.4×27.4×
P/B0.8×0.7×0.9×0.8×1.2×
P/S0.8×0.5×0.6×0.6×0.9×
EV/EBITDA———20.5×26.6×
Dividend yield1.7%2.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Formetal17.5×0.6×0.6×—2.2%
CS Wind382.1×1.3×0.6×—2.6%
Hankuk Carbon8.0×1.2×0.9×—2.0%
Taewoong68.8×0.8×1.4×21.9×0.0%
YG-15.4×0.8×0.5×—1.8%
Bosung Power Technology19.8×2.2×1.9×9.1×0.0%
Hansun Engineering39.4×2.8×3.3×15.6×0.0%
Similar companies (median)29.6×1.2×1.1×15.6×0.9%

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

Also known as: Formetal / 포메탈 / 119500 / KRX:119500

Source: KRX statistical information