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Finebesteel

133820 · KOSPI · ₩133820 · 화인베스틸

₩886▲ ₩16 (1.84%)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

With these assumptions the model gives no positive value.

Enterprise value
−₩209B
Equity value
−₩298B
WACC
5.0%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩886, the model needs an operating margin of 2.2% every year (it uses −3.2%).
  • Margins ranged from −16.1% to 4.5% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
—
Bull
—

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 (−3.2%).

Revenue growth

  • 10.1%

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

    Default: the last 3 years' revenue growth (10.1% a year, annual reports), fading to 3% by year 5.

  • 8.3%

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

    Default: the last 3 years' revenue growth (10.1% a year, annual reports), fading to 3% by year 5.

  • 6.5%

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

    Default: the last 3 years' revenue growth (10.1% a year, annual reports), fading to 3% by year 5.

  • 4.8%

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

    Default: the last 3 years' revenue growth (10.1% 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 (10.1% a year, annual reports), fading to 3% by year 5.

Business

  • -3.2%

    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.

  • 4.2%

    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).

  • 2.8%

    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).

  • -1.9%

    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 0.3, 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)
₩202B
Net debt (borrowings and leases − cash and deposits)
₩88B
+ Stakes and investments
₩6.1M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1B
Shares
37,114,502
Share price
₩886
Market cap
₩33B

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₩132B₩119B₩186B₩222B₩240B₩256B₩268B₩276B
Growth−5.3%−9.9%56.2%10.1%8.3%6.5%4.8%3.0%
EBIT−₩20B−₩19B−₩1.7B−₩7.1B−₩7.7B−₩8.2B−₩8.6B−₩8.8B
EBIT margin−15.0%−16.1%−0.9%−3.2%−3.2%−3.2%−3.2%−3.2%
After-tax EBIT−₩14B−₩14B−₩1.2B−₩5.2B−₩5.6B−₩5.9B−₩6.2B−₩6.4B
+ Depreciation——₩7.8B₩9.3B₩10B₩11B₩11B₩12B
− Capital spending₩6.6B₩2.2B₩2.6B₩6.2B₩6.7B₩7.2B₩7.5B₩7.7B
− Working capital−₩90B₩52B₩16B−₩387M−₩350M−₩297M−₩234M−₩153M
Free cash flow——−₩12B−₩1.7B−₩1.9B−₩2.1B−₩2.2B−₩2.4B
Discount factor———0.9530.9070.8640.8230.784
Present value———−₩1.6B−₩1.7B−₩1.8B−₩1.8B−₩1.9B

Terminal value −₩256B, worth −₩201B today: 96% 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 ₩1,358 a share)Now 0.65×₩8860.65×₩1,2900.95×₩2,2351.65×

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%
4.0%—————
4.5%—————
5.0%—————
5.5%—————
6.0%—————

Now (TTM)

Market cap
₩33B
Enterprise value
₩121B
P/E
—
P/B
0.7×
P/S
0.2×
EV/EBITDA
9.5×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩1,643₩916₩1,263₩2,090₩3,045
Market cap₩61B₩34B₩47B₩78B₩113B
P/E————47.6×
P/B1.2×1.0×0.8×1.0×1.4×
P/S0.3×0.3×0.4×0.6×0.9×
EV/EBITDA22.5×——17.2×13.8×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Finebesteel—0.7×0.2×9.5×0.0%
POSCO Holdings16.2×0.4×0.3×7.7×3.6%
Korea Zinc18.1×1.6×0.8×—2.3%
Hyundai Steel—0.2×0.2×—1.9%
Poongsan8.0×0.7×0.3×5.9×2.9%
SeAH Besteel Holdings12.7×0.6×0.3×9.6×3.8%
Sama Aluminium—4.3×3.1×—0.0%
Similar companies (median)14.4×0.6×0.3×7.7×2.6%

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

Also known as: Finebesteel / 화인베스틸 / 133820 / KRX:133820

Source: KRX statistical information