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Zero to Seven

159580 · KOSDAQ · ₩159580 · 제로투세븐

₩1,990▲ ₩41 (2.10%)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

₩1,285

vs the current price (₩1,990)

Enterprise value
₩21B
Equity value
₩26B
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 35% 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 ₩1,990, the model needs an operating margin of 5.1% every year (it uses 3.3%).
  • Margins ranged from 2.1% to 10.3% 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.
  • 54% 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 8.8× against a typical 29.0× 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
₩614
−69.1%
Base
₩1,285
−35.4%
Bull
₩2,580
+29.7%

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 (3.3%).

Revenue growth

  • -7.8%

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

    Default: the last 3 years' revenue growth (-7.8% a year, annual reports), fading to 3% by year 5.

  • -5.1%

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

    Default: the last 3 years' revenue growth (-7.8% a year, annual reports), fading to 3% by year 5.

  • -2.4%

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

    Default: the last 3 years' revenue growth (-7.8% a year, annual reports), fading to 3% by year 5.

  • 0.3%

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

    Default: the last 3 years' revenue growth (-7.8% 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 (-7.8% a year, annual reports), fading to 3% by year 5.

Business

  • 3.3%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 1.2%

    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).

  • 1.5%

    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).

  • 37%

    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.

  • 4.08%

    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.

  • 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 0.13, 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.

  • 5.58%

    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)
₩71B
Net debt (borrowings and leases − cash and deposits)
−₩4.9B
Shares
20,032,636
Share price
₩1,990
Market cap
₩40B

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₩69B₩67B₩71B₩65B₩62B₩60B₩61B₩62B
Growth−23.2%−3.6%6.1%−7.8%−5.1%−2.4%0.3%3.0%
EBIT₩2.3B₩1.5B₩2.5B₩2.2B₩2B₩2B₩2B₩2.1B
EBIT margin3.3%2.3%3.5%3.3%3.3%3.3%3.3%3.3%
After-tax EBIT₩1.7B₩1.1B₩1.8B₩1.6B₩1.5B₩1.4B₩1.4B₩1.5B
+ Depreciation———₩783M₩743M₩725M₩727M₩749M
− Capital spending₩1.7B₩691M₩751M₩978M₩928M₩906M₩909M₩936M
− Working capital−₩1.5B₩3.9B−₩4.6B−₩2B−₩1.2B−₩550M₩67M₩673M
Free cash flow———₩3.4B₩2.5B₩1.8B₩1.2B₩633M
Discount factor———0.9310.8670.8080.7520.700
Present value———₩3.2B₩2.2B₩1.5B₩903M₩444M

Terminal value ₩18B, worth ₩13B today: 61% 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 ₩4,157 a share)Now 0.48×₩3,5220.85×₩5,8651.41×₩9,9512.39×
Price / earnings (last 12 months: ₩225 a share)Now 8.83×₩2,63011.7×₩6,53329.0×₩13,75861.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩399 a share)Now 4.98×₩4,66111.7×₩11,57729.0×₩24,38061.1×

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%₩1,476₩1,476₩1,475₩1,473₩1,469
6.9%₩1,385₩1,379₩1,370₩1,359₩1,344
7.4%₩1,308₩1,298₩1,285₩1,268₩1,247
7.9%₩1,242₩1,229₩1,213₩1,194₩1,170
8.4%₩1,185₩1,170₩1,153₩1,132₩1,106

Now (TTM)

Market cap
₩40B
Enterprise value
₩34B
P/E
8.8×
P/B
0.5×
P/S
0.6×
EV/EBITDA
—
Dividend yield
2.5%

Over time (at each year end)

20252024202320222021
Price₩3,975₩5,430₩6,390₩6,870₩10,950
Market cap₩80B₩109B₩128B₩138B₩219B
P/E23.1×217.5×132.8×33.3×188.4×
P/B1.0×1.3×1.6×1.7×3.0×
P/S1.1×1.6×1.8×1.5×2.0×
EV/EBITDA—————
Dividend yield1.3%0.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Zero to Seven8.8×0.5×0.6×—2.5%
Samsung C&T18.8×0.5×1.2×—0.9%
POSCO International10.6×1.3×0.3×—3.7%
ISC45.3×6.0×12.6×—0.5%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies18.9×1.6×5.1×—4.2%
Shinsegae14.4×0.5×0.3×—2.0%
Similar companies (median)16.6×1.0×1.0×—2.6%

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

Also known as: Zero to Seven / 제로투세븐 / 159580 / KRX:159580

Source: KRX statistical information