KOSDAQ · 199820 · Electrical equipment · ₩199820

Cheil Electric제일일렉트릭

199820 · KOSDAQ · ₩199820 · 제일일렉트릭

₩6,840▲ ₩870 (14.57%)End-of-day · Oct 27, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩3,743

vs the current price (₩6,840)

Enterprise value: ₩102B
Equity value: ₩83B
WACC: 7.9%

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 45% 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 ₩6,840, the model needs an operating margin of 7.5% every year (it uses 5.4%).
Or revenue growth +16.6 points a year higher than assumed in each of the 5 years.
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 23.5× against a typical 19.8× 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: ₩357; −94.8%
Base: ₩3,743; −45.3%
Bull: ₩9,678; +41.5%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (5.4%).

Revenue growth

Revenue growth, year 114%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 211.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 38.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (14% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin5.4%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation2.1%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending5.2%
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).
Working capital22.6%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
Beta0.79
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 0.69, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.53%
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): ₩192B
Net debt (borrowings and leases − cash and deposits): ₩20B
+ Stakes and investments: ₩2.7B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩1.2B
Shares: 22,220,000
Share price: ₩6,840
Market cap: ₩152B

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	₩144B	₩186B	₩196B	₩219B	₩244B	₩265B	₩280B	₩288B
Growth	9.0%	29.4%	5.2%	14.0%	11.3%	8.5%	5.8%	3.0%
EBIT	₩7.7B	₩8.9B	₩12B	₩12B	₩13B	₩14B	₩15B	₩16B
EBIT margin	5.3%	4.8%	6.0%	5.4%	5.4%	5.4%	5.4%	5.4%
After-tax EBIT	₩5.6B	₩6.5B	₩8.5B	₩8.6B	₩9.5B	₩10B	₩11B	₩11B
+ Depreciation	₩3.2B	₩3.6B	—	₩4.6B	₩5.1B	₩5.6B	₩5.9B	₩6.1B
− Capital spending	₩3.3B	₩6.9B	₩19B	₩11B	₩13B	₩14B	₩15B	₩15B
− Working capital	−₩24B	₩8.3B	₩23B	₩6.1B	₩5.6B	₩4.7B	₩3.5B	₩1.9B
Free cash flow	₩30B	−₩5.1B	—	−₩4.3B	−₩3.6B	−₩2.5B	−₩1.2B	₩452M
Discount factor	—	—	—	0.927	0.860	0.797	0.739	0.685
Present value	—	—	—	−₩4B	−₩3.1B	−₩2B	−₩877M	₩310M

Terminal value ₩163B, worth ₩112B today: 109% 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 ₩7,240 a share)Now 0.94×	₩6,4410.89×	₩9,6481.33×	₩12,8261.77×
Price / earnings (last 12 months: ₩291 a share)Now 23.5×	₩3,23411.1×	₩5,76619.8×	₩10,79237.1×
P/E on run-rate earnings (Q2 2026 × 4: ₩539 a share)Now 12.7×	₩5,98211.1×	₩10,66519.8×	₩19,96337.1×

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%
6.9%	₩4,287	₩4,639	₩5,062	₩5,579	₩6,227
7.4%	₩3,732	₩4,010	₩4,339	₩4,732	₩5,214
7.9%	₩3,262	₩3,485	₩3,743	₩4,048	₩4,413
8.4%	₩2,859	₩3,039	₩3,245	₩3,484	₩3,766
8.9%	₩2,511	₩2,656	₩2,822	₩3,012	₩3,233

Now (TTM)

Market cap: ₩152B
Enterprise value: ₩172B
P/E: 23.5×
P/B: 0.9×
P/S: 0.8×
EV/EBITDA: —
Dividend yield: 1.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩9,680	₩8,590	₩5,012	₩4,737	₩9,129
Market cap	₩215B	₩191B	₩111B	₩105B	₩203B
P/E	32.5×	18.5×	13.9×	14.2×	15.7×
P/B	1.4×	1.3×	0.9×	0.9×	1.7×
P/S	1.1×	1.0×	0.8×	0.8×	1.4×
EV/EBITDA	—	13.4×	7.3×	10.0×	12.2×
Dividend yield	1.0%	1.2%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Cheil Electric	23.5×	0.9×	0.8×	—	1.5%
LS Electric	61.0×	11.1×	4.2×	37.7×	0.0%
Hyosung Heavy Industries	30.5×	6.9×	2.8×	—	0.4%
HD Hyundai Electric	19.1×	7.2×	3.7×	—	0.0%
Gaon Cable	106.8×	12.9×	2.4×	55.6×	0.0%
Sanil Electric	27.2×	7.4×	8.3×	—	0.8%
Taihan Cable & Solution	—	2.2×	1.0×	—	0.0%
Similar companies (median)	30.5×	7.3×	3.3×	46.7×	0.0%

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

Also known as: Cheil Electric / 제일일렉트릭 / 199820 / KRX:199820

Source: KRX statistical information