KOSDAQ · 140520 · Steel & Materials · ₩140520

DaeChang Steel대창스틸

140520 · KOSDAQ · ₩140520 · 대창스틸

₩1,992▲ ₩3 (0.15%)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

With these assumptions the model gives no positive value.

Enterprise value: ₩33B
Equity value: −₩24B
WACC: 5.4%

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

To match today's price of ₩1,992, the model needs an operating margin of 2.0% every year (it uses 1.3%).
Today's P/E is 6.4× against a typical 7.3× 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: —
Bull: ₩12,812; +543.2%

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 (1.3%).

Revenue growth

Revenue growth, year 10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0% 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% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0% 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% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.3%
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 & amortisation0.9%
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 spending1.1%
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 capital30%
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 0.13, 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): ₩426B
Net debt (borrowings and leases − cash and deposits): ₩61B
+ Stakes and investments: ₩3.7B; Associates, long-term financial assets and deposits (book value)
Shares: 21,109,243
Share price: ₩1,992
Market cap: ₩42B

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	₩420B	₩402B	₩399B	₩426B	₩430B	₩436B	₩446B	₩460B
Growth	5.3%	−4.1%	−1.0%	0.0%	0.8%	1.5%	2.3%	3.0%
EBIT	₩5.7B	₩3B	₩3.4B	₩5.5B	₩5.6B	₩5.7B	₩5.8B	₩6B
EBIT margin	1.4%	0.7%	0.8%	1.3%	1.3%	1.3%	1.3%	1.3%
After-tax EBIT	₩4.2B	₩2.2B	₩2.4B	₩4B	₩4.1B	₩4.1B	₩4.2B	₩4.3B
+ Depreciation	—	—	—	₩3.8B	₩3.9B	₩3.9B	₩4B	₩4.1B
− Capital spending	₩9.6B	₩3B	₩1.1B	₩4.7B	₩4.7B	₩4.8B	₩4.9B	₩5.1B
− Working capital	₩21B	−₩4.4B	−₩16B	₩0	₩1B	₩1.9B	₩3B	₩4B
Free cash flow	—	—	—	₩3.2B	₩2.2B	₩1.3B	₩303M	−₩603M
Discount factor	—	—	—	0.949	0.900	0.854	0.810	0.768
Present value	—	—	—	₩3B	₩2B	₩1.1B	₩246M	−₩464M

Terminal value ₩35B, worth ₩27B 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 ₩7,040 a share)Now 0.28×	₩2,0180.29×	₩2,4360.35×	₩4,5110.64×
Price / earnings (last 12 months: ₩309 a share)Now 6.45×	₩3311.07×	₩2,2527.29×	₩11,12236.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩377 a share)Now 5.29×	₩4041.07×	₩2,7467.29×	₩13,56336.0×

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%
4.4%	₩456	₩48	—	—	—
4.9%	₩28	—	—	—	—
5.4%	—	—	—	—	—
5.9%	—	—	—	—	—
6.4%	—	—	—	—	—

Now (TTM)

Market cap: ₩42B
Enterprise value: ₩102B
P/E: 6.4×
P/B: 0.3×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 7.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩2,155	₩2,095	₩2,715	₩2,860	₩3,100
Market cap	₩45B	₩44B	₩57B	₩60B	₩65B
P/E	15.9×	57.9×	22.3×	1.1×	4.6×
P/B	0.3×	0.3×	0.4×	0.4×	0.6×
P/S	0.1×	0.1×	0.1×	0.2×	0.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	7.0%	7.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
DaeChang Steel	6.4×	0.3×	0.1×	—	7.5%
POSCO Holdings	16.2×	0.4×	0.3×	7.7×	3.6%
Korea Zinc	18.6×	1.6×	0.9×	—	2.3%
Hyundai Steel	—	0.2×	0.2×	—	1.9%
Poongsan	8.1×	0.7×	0.3×	5.9×	2.9%
SeAH Besteel Holdings	12.2×	0.5×	0.3×	9.5×	4.0%
Sama Aluminium	—	4.1×	3.0×	—	0.0%
Similar companies (median)	14.2×	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: DaeChang Steel / 대창스틸 / 140520 / KRX:140520

Source: KRX statistical information