Kangdong C&L강동씨앤엘
198440 · KOSDAQ · ₩198440 · 강동씨앤엘
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
- ₩13B
- Equity value
- −₩5.9B
- WACC
- 8.1%
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 ₩1,303, the model needs an operating margin of 11.6% every year (it uses 1.9%).
- Or revenue growth +42.4 points a year higher than assumed in each of the 5 years.
- Margins ranged from −34.1% to 11.7% 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.
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
- ₩402
- −69.2%
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 (1.9%).
Revenue growth
- 0.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.9% a year, annual reports), fading to 3% by year 5.
- 1.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.9% a year, annual reports), fading to 3% by year 5.
- 2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.9% a year, annual reports), fading to 3% by year 5.
- 2.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.9% 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 (0.9% a year, annual reports), fading to 3% by year 5.
Business
- 1.9%
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.
- 3%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so a typical level.
- 4%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: not in the statements, so a typical level.
- -10%
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.
- 0.91
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 0.86, 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)
- ₩73B
- Net debt (borrowings and leases − cash and deposits)
- ₩19B
- Shares
- 60,931,896
- Share price
- ₩1,303
- Market cap
- ₩79B
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 | ₩51B | ₩47B | ₩72B | ₩74B | ₩75B | ₩76B | ₩78B | ₩81B |
| Growth | −27.7% | −6.2% | 51.6% | 0.9% | 1.4% | 2.0% | 2.5% | 3.0% |
| EBIT | −₩17B | ₩5.6B | ₩7.4B | ₩1.4B | ₩1.4B | ₩1.5B | ₩1.5B | ₩1.5B |
| EBIT margin | −34.1% | 11.7% | 10.3% | 1.9% | 1.9% | 1.9% | 1.9% | 1.9% |
| After-tax EBIT | −₩12B | ₩4B | ₩5.4B | ₩1B | ₩1B | ₩1.1B | ₩1.1B | ₩1.1B |
| + Depreciation | — | — | — | ₩2.2B | ₩2.2B | ₩2.3B | ₩2.3B | ₩2.4B |
| − Capital spending | — | — | — | ₩3B | ₩3B | ₩3.1B | ₩3.1B | ₩3.2B |
| − Working capital | −₩22B | −₩140B | −₩16B | −₩66M | −₩103M | −₩150M | −₩191M | −₩235M |
| Free cash flow | — | — | — | ₩345M | ₩386M | ₩438M | ₩486M | ₩539M |
| Discount factor | — | — | — | 0.925 | 0.855 | 0.791 | 0.731 | 0.676 |
| Present value | — | — | — | ₩319M | ₩330M | ₩346M | ₩356M | ₩365M |
Terminal value ₩17B, worth ₩12B today: 87% 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 ₩2,201 a share)Now 0.59× | ₩1,1100.50× | ₩2,4441.11× | ₩4,9182.23× |
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% |
|---|---|---|---|---|---|
| 7.1% | — | — | — | — | ₩37 |
| 7.6% | — | — | — | — | — |
| 8.1% | — | — | — | — | — |
| 8.6% | — | — | — | — | — |
| 9.1% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩79B
- Enterprise value
- ₩99B
- P/E
- 105.8×
- P/B
- 0.6×
- P/S
- 1.1×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Price | ₩1,088 | ₩1,203 | ₩1,706 | ₩2,380 | ₩3,850 |
| Market cap | ₩66B | ₩73B | ₩104B | ₩145B | ₩235B |
| P/E | 101.1× | — | — | — | 50.6× |
| P/B | 0.5× | 0.5× | 1.1× | 1.3× | 2.0× |
| P/S | 0.9× | 1.5× | 2.1× | 2.1× | 3.6× |
| EV/EBITDA | — | — | — | — | — |
| Dividend yield | 0.0% | — | — | — | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Kangdong C&L | 105.8× | 0.6× | 1.1× | — | 0.0% |
| Tokai Carbon Korea | 30.7× | 4.3× | 7.0× | — | 0.7% |
| Hanilcementco | 12.1× | 0.7× | 0.9× | — | 6.0% |
| Wonik QnC | 13.8× | 1.2× | 0.7× | — | 0.5% |
| Sampyo Cement | 16.9× | 0.8× | 0.9× | 6.0× | 2.2% |
| Hanil Holdings | 9.5× | 0.3× | 0.3× | — | 5.9% |
| IS Dongseo | 5.2× | 0.3× | 0.4× | — | 3.5% |
| Similar companies (median) | 13.0× | 0.7× | 0.8× | 6.0× | 2.8% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Kangdong C&L / 강동씨앤엘 / 198440 / KRX:198440
Source: KRX statistical information