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DRB Industrial

163560 · KOSPI · ₩163560 · 동일고무벨트

₩5,270▲ ₩70 (1.35%)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

₩9,987

vs the current price (₩5,270)

Enterprise value
₩153B
Equity value
₩139B
WACC
6.9%

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 90% 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 ₩5,270, the model needs an operating margin of 2.3% every year (it uses 3.5%).
  • Today's P/E is 2.8× against a typical 9.8× 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
₩2,359
−55.2%
Base
₩9,987
+89.5%
Bull
₩24,787
+370.3%

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 (3.5%).

Revenue growth

  • -2.3%

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

    Default: the last 3 years' revenue growth (-2.3% a year, annual reports), fading to 3% by year 5.

  • -0.9%

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

    Default: the last 3 years' revenue growth (-2.3% a year, annual reports), fading to 3% by year 5.

  • 0.4%

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

    Default: the last 3 years' revenue growth (-2.3% a year, annual reports), fading to 3% by year 5.

  • 1.7%

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

    Default: the last 3 years' revenue growth (-2.3% 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 (-2.3% a year, annual reports), fading to 3% by year 5.

Business

  • 3.5%

    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.

  • 0%

    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).

  • 0%

    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).

  • 29.8%

    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 0.2, 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)
₩387B
Net debt (borrowings and leases − cash and deposits)
₩14B
+ Stakes and investments
₩594M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.5B
Shares
13,900,000
Share price
₩5,270
Market cap
₩73B

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₩358B₩337B₩365B₩378B₩375B₩376B₩383B₩394B
Growth−8.4%−5.8%8.2%−2.3%−0.9%0.4%1.7%3.0%
EBIT₩14B₩9.6B₩19B₩13B₩13B₩13B₩13B₩14B
EBIT margin3.8%2.8%5.1%3.5%3.5%3.5%3.5%3.5%
After-tax EBIT₩9.9B₩7B₩13B₩9.6B₩9.5B₩9.5B₩9.7B₩10B
+ Depreciation———₩0₩0₩0₩0₩0
− Capital spending₩50M—₩352,500₩0₩0₩0₩0₩0
− Working capital−₩27B₩4.1B₩21B−₩2.7B−₩1B₩447M₩1.9B₩3.4B
Free cash flow———₩12B₩11B₩9.1B₩7.8B₩6.6B
Discount factor———0.9360.8750.8190.7660.717
Present value———₩11B₩9.2B₩7.5B₩6B₩4.7B

Terminal value ₩160B, worth ₩115B today: 75% 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 ₩18,159 a share)Now 0.29×₩7,0060.39×₩7,9360.44×₩9,2880.51×
Price / earnings (last 12 months: ₩1,851 a share)Now 2.85×₩8,9954.86×₩18,1989.83×₩52,95928.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,036 a share)Now 2.59×₩9,8984.86×₩20,0249.83×₩58,27628.6×

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%
5.9%₩11,681₩12,127₩12,680₩13,387₩14,329
6.4%₩10,521₩10,820₩11,180₩11,626₩12,194
6.9%₩9,557₩9,755₩9,987₩10,265₩10,607
7.4%₩8,745₩8,871₩9,015₩9,182₩9,380
7.9%₩8,051₩8,125₩8,207₩8,299₩8,403

Now (TTM)

Market cap
₩73B
Enterprise value
₩87B
P/E
2.8×
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
2.8%

Over time (at each year end)

20252024202320222021
Price₩6,870₩6,780₩6,200₩6,200₩7,530
Market cap₩95B₩94B₩86B₩86B₩105B
P/E9.0×8.7×9.0×11.1×17.3×
P/B0.4×0.4×0.4×0.4×0.5×
P/S0.3×0.3×0.2×0.2×0.4×
EV/EBITDA—————
Dividend yield2.2%2.2%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
DRB Industrial2.8×0.3×0.2×—2.8%
Hankook Tire & Technology5.8×0.5×0.3×—4.0%
Kumho Tire3.1×0.6×0.3×—0.0%
Pum-Tech Korea20.5×2.6×2.2×—0.7%
Dongwon Systems9.8×0.7×0.4×5.7×2.8%
Nexen Tire3.5×0.2×0.2×—3.6%
PI Advanced Materials13.6×1.3×1.8×5.5×2.1%
Similar companies (median)7.8×0.6×0.4×5.6×2.5%

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

Also known as: DRB Industrial / 동일고무벨트 / 163560 / KRX:163560

Source: KRX statistical information