Dong-A ST동아에스티
170900 · KOSPI · ₩170900 · 동아에스티
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
- −₩9.5B
- Equity value
- −₩264B
- WACC
- 5.9%
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 gives no positive value at these assumptions. What we can see:
- To match today's price of ₩34,900, the model needs an operating margin of 4.9% every year (it uses 1.8%).
- Analysts' forecasts for 2026: revenue ₩815B, operating profit ₩50B (6.1% margin) (1 broker). The model starts from the last 12 months reported.
- Analysts' forecasts for 2027: revenue ₩845B, operating profit ₩56B (6.6% margin) (1 broker). The model starts from the last 12 months reported.
- 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.
- Today's P/E is 39.1× against a typical 37.5× 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
- ₩32,218
- −7.7%
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Start from
Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.
Margin path
Every year uses the cycle-average margin (1.8%).
Revenue growth
- 8.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.4% a year, annual reports), fading to 3% by year 5.
- 7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.4% a year, annual reports), fading to 3% by year 5.
- 5.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.4% a year, annual reports), fading to 3% by year 5.
- 4.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (8.4% 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 (8.4% a year, annual reports), fading to 3% by year 5.
Business
- 1.8%
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.
- 4.1%
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).
- 5.1%
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).
- 32.6%
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 0.04, 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)
- ₩861B
- Net debt (borrowings and leases − cash and deposits)
- ₩275B
- + Stakes and investments
- ₩47B
- Associates, long-term financial assets and deposits (book value)
- − Minority interests
- ₩27B
- Shares
- 9,727,881
- Share price
- ₩34,900
- Market cap
- ₩340B
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 | ₩664B | ₩698B | ₩809B | ₩933B | ₩999B | ₩1.1T | ₩1.1T | ₩1.1T |
| Growth | 4.5% | 5.1% | 15.9% | 8.4% | 7.0% | 5.7% | 4.3% | 3.0% |
| EBIT | ₩11B | −₩25B | ₩623M | ₩17B | ₩18B | ₩19B | ₩20B | ₩20B |
| EBIT margin | 1.7% | −3.6% | 0.1% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% |
| After-tax EBIT | ₩8.1B | −₩18B | ₩452M | ₩12B | ₩13B | ₩14B | ₩14B | ₩15B |
| + Depreciation | — | — | — | ₩38B | ₩41B | ₩43B | ₩45B | ₩46B |
| − Capital spending | ₩42B | ₩32B | ₩36B | ₩48B | ₩51B | ₩54B | ₩56B | ₩58B |
| − Working capital | ₩63B | ₩70B | ₩26B | ₩24B | ₩21B | ₩19B | ₩15B | ₩11B |
| Free cash flow | — | — | — | −₩21B | −₩18B | −₩15B | −₩11B | −₩7.3B |
| Discount factor | — | — | — | 0.944 | 0.891 | 0.842 | 0.795 | 0.750 |
| Present value | — | — | — | −₩20B | −₩16B | −₩13B | −₩9.1B | −₩5.5B |
Terminal value ₩72B, worth ₩54B today: -570% 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 ₩66,546 a share)Now 0.52× | ₩40,5750.61× | ₩53,2600.80× | ₩67,6471.02× |
| Price / earnings (last 12 months: ₩893 a share)Now 39.1× | ₩23,98726.9× | ₩33,51537.5× | ₩44,33249.6× |
| P/E on run-rate earnings (Q2 2026 × 4: ₩1,122 a share)Now 31.1× | ₩30,13126.9× | ₩42,10037.5× | ₩55,68749.6× |
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% |
|---|---|---|---|---|---|
| 4.9% | — | — | — | — | — |
| 5.4% | — | — | — | — | — |
| 5.9% | — | — | — | — | — |
| 6.4% | — | — | — | — | — |
| 6.9% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩340B
- Enterprise value
- ₩606B
- P/E
- 39.1×
- P/B
- 0.5×
- P/S
- 0.4×
- EV/EBITDA
- —
- Dividend yield
- 1.9%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩50,072 | ₩56,080 | ₩65,904 | ₩57,988 | ₩68,288 |
| Market cap | ₩487B | ₩546B | ₩641B | ₩564B | ₩664B |
| P/E | — | — | 57.6× | 41.6× | 51.8× |
| P/B | 0.8× | 0.8× | 1.0× | 0.8× | 1.0× |
| P/S | 0.6× | 0.8× | 1.0× | 0.9× | 1.1× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 1.3% | 1.2% | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Dong-A ST | 39.1× | 0.5× | 0.4× | — | 1.9% |
| Samsung Biologics | 32.1× | 7.6× | 14.0× | — | 0.0% |
| Celltrion | 27.8× | 2.4× | 8.9× | — | 0.0% |
| Alteogen | 78.8× | 28.4× | 59.9× | — | 0.1% |
| Yuhan | 24.8× | 2.5× | 2.6× | 32.5× | 0.8% |
| SK biopharmaceuticals | 14.6× | 5.7× | 6.8× | — | 0.0% |
| HLB | — | 15.4× | 54.6× | — | 0.0% |
| Similar companies (median) | 27.8× | 6.7× | 11.5× | 32.5× | 0.0% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Dong-A ST / 동아에스티 / 170900 / KRX:170900
Source: KRX statistical information