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SGA Solutions

184230 · KOSDAQ · ₩184230 · SGA솔루션즈

₩1,981▼ ₩99 (4.76%)End-of-day · Oct 29, 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

₩10,478

vs the current price (₩1,981)

Enterprise value
₩210B
Equity value
₩197B
WACC
7.6%

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 429% 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 ₩1,981, the model needs an operating margin of 4.1% every year (it uses 11.1%).
  • Or revenue growth −28.3 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −9.6% to 24.1% 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.
  • Today's P/E is 2.0× against a typical 15.0× 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
₩5,737
+189.6%
Base
₩10,478
+428.9%
Bull
₩18,273
+822.4%

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 (11.1%).

Revenue growth

  • 18.2%

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

    Default: the last 3 years' revenue growth (18.2% a year, annual reports), fading to 3% by year 5.

  • 14.4%

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

    Default: the last 3 years' revenue growth (18.2% a year, annual reports), fading to 3% by year 5.

  • 10.6%

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

    Default: the last 3 years' revenue growth (18.2% a year, annual reports), fading to 3% by year 5.

  • 6.8%

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

    Default: the last 3 years' revenue growth (18.2% 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 (18.2% a year, annual reports), fading to 3% by year 5.

Business

  • 11.1%

    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.

  • 12.1%

    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).

  • 15.1%

    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).

  • -7.3%

    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.

  • 1

    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 1, 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)
₩118B
Net debt (borrowings and leases − cash and deposits)
₩20B
+ Stakes and investments
₩29B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩21B
Shares
18,833,952
Share price
₩1,981
Market cap
₩37B

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₩55B₩43B₩62B₩140B₩160B₩177B₩189B₩195B
Growth46.6%−21.6%43.6%18.2%14.4%10.6%6.8%3.0%
EBIT₩1.3B−₩4.1B₩15B₩16B₩18B₩20B₩21B₩22B
EBIT margin2.3%−9.6%24.1%11.1%11.1%11.1%11.1%11.1%
After-tax EBIT₩926M−₩3B₩11B₩11B₩13B₩14B₩15B₩16B
+ Depreciation———₩17B₩19B₩21B₩23B₩24B
− Capital spending₩1.4B₩18B₩1.2B₩21B₩24B₩27B₩29B₩29B
− Working capital−₩575M−₩5.3B−₩10B−₩1.6B−₩1.5B−₩1.2B−₩879M−₩414M
Free cash flow———₩8.6B₩9.6B₩10B₩10B₩10B
Discount factor———0.9290.8630.8020.7450.693
Present value———₩8B₩8.2B₩8.2B₩7.8B₩7.1B

Terminal value ₩247B, worth ₩171B today: 81% 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 ₩1,792 a share)Now 1.11×₩1,7310.97×₩2,5361.41×₩4,9482.76×
Price / earnings (last 12 months: ₩973 a share)Now 2.04×₩1,9291.98×₩14,58615.0×₩29,81130.6×

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%
6.6%₩10,778₩11,794₩13,029₩14,565₩16,527
7.1%₩9,790₩10,627₩11,628₩12,847₩14,362
7.6%₩8,951₩9,652₩10,478₩11,466₩12,668
8.1%₩8,232₩8,826₩9,517₩10,332₩11,306
8.6%₩7,608₩8,116₩8,702₩9,385₩10,188

Now (TTM)

Market cap
₩37B
Enterprise value
₩57B
P/E
2.0×
P/B
1.1×
P/S
0.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,140₩2,320₩3,744₩3,726₩5,524
Market cap₩59B₩44B₩71B₩70B₩104B
P/E3.4×——15.5×65.2×
P/B1.7×1.0×1.4×1.4×2.9×
P/S1.0×1.0×1.3×1.9×4.2×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SGA Solutions2.0×1.1×0.3×—0.0%
Hyundai Autoever47.8×4.8×2.0×—0.6%
Krafton10.0×1.2×1.9×—1.2%
NC7.0×1.2×2.1×8.4×0.6%
Netmarble7.1×0.5×1.0×—2.6%
PearlAbyss8.0×2.1×3.0×5.2×0.0%
Shift UP9.0×1.8×7.2×—0.0%
Similar companies (median)8.5×1.5×2.0×6.8×0.6%

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

Also known as: SGA Solutions / SGA솔루션즈 / 184230 / KRX:184230

Source: KRX statistical information