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Gritee

204020 · KOSDAQ · ₩204020 · 그리티

₩1,736▼ ₩1 (0.06%)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

₩3,302

vs the current price (₩1,736)

Enterprise value
₩82B
Equity value
₩64B
WACC
6.2%

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 ₩1,736, the model needs an operating margin of 3.4% every year (it uses 4.1%).
  • Margins ranged from −7.0% to 6.3% 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.
  • 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 6.6× against a typical 7.7× 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
₩3,302
+90.2%
Bull
₩12,316
+609.4%

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 (4.1%).

Revenue growth

  • 12.1%

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

    Default: the last 3 years' revenue growth (12.1% a year, annual reports), fading to 3% by year 5.

  • 9.8%

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

    Default: the last 3 years' revenue growth (12.1% a year, annual reports), fading to 3% by year 5.

  • 7.6%

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

    Default: the last 3 years' revenue growth (12.1% a year, annual reports), fading to 3% by year 5.

  • 5.3%

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

    Default: the last 3 years' revenue growth (12.1% 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 (12.1% a year, annual reports), fading to 3% by year 5.

Business

  • 4.1%

    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.

  • 6.8%

    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).

  • 8.5%

    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).

  • 27%

    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.

  • 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 0.29, 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)
₩197B
Net debt (borrowings and leases − cash and deposits)
₩18B
+ Stakes and investments
₩56M
Associates, long-term financial assets and deposits (book value)
Shares
19,450,832
Share price
₩1,736
Market cap
₩34B

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₩176B₩195B₩202B₩221B₩242B₩261B₩275B₩283B
Growth23.0%10.6%3.6%12.1%9.8%7.6%5.3%3.0%
EBIT₩11B₩12B₩7.9B₩9.1B₩9.9B₩11B₩11B₩12B
EBIT margin6.3%6.3%3.9%4.1%4.1%4.1%4.1%4.1%
After-tax EBIT₩8.1B₩8.9B₩5.7B₩6.6B₩7.2B₩7.8B₩8.2B₩8.4B
+ Depreciation———₩15B₩16B₩18B₩19B₩19B
− Capital spending₩633M₩4.9B₩46B₩19B₩21B₩22B₩23B₩24B
− Working capital−₩9.4B₩10B₩963M₩6.4B₩5.8B₩5B₩3.7B₩2.2B
Free cash flow———−₩3.6B−₩2.8B−₩1.7B−₩237M₩1.4B
Discount factor———0.9410.8860.8340.7850.739
Present value———−₩3.4B−₩2.4B−₩1.4B−₩187M₩1B

Terminal value ₩120B, worth ₩89B today: 108% 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 ₩4,367 a share)Now 0.40×₩2,0850.48×₩3,3040.76×₩4,0820.93×
Price / earnings (last 12 months: ₩264 a share)Now 6.57×₩1,4245.39×₩2,0267.67×₩4,03515.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩721 a share)Now 2.41×₩3,8865.39×₩5,5277.67×₩11,01115.3×

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%
5.2%₩4,200₩4,548₩4,999₩5,611₩6,490
5.7%₩3,510₩3,743₩4,035₩4,412₩4,922
6.2%₩2,956₩3,113₩3,302₩3,539₩3,845
6.7%₩2,502₩2,605₩2,728₩2,876₩3,061
7.2%₩2,123₩2,190₩2,266₩2,357₩2,465

Now (TTM)

Market cap
₩34B
Enterprise value
₩47B
P/E
6.6×
P/B
0.4×
P/S
0.2×
EV/EBITDA
—
Dividend yield
6.6%

Over time (at each year end)

20252024202320222021
Price₩2,190₩2,900₩3,050₩2,990₩2,645
Market cap₩43B₩56B₩59B₩58B₩51B
P/E9.1×5.8×7.0×28.7×—
P/B0.5×0.7×0.8×0.8×0.8×
P/S0.2×0.3×0.3×0.4×0.5×
EV/EBITDA—————
Dividend yield5.3%3.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Gritee6.6×0.4×0.2×—6.6%
F&F4.5×1.1×1.2×—4.4%
LF5.6×0.4×0.3×4.6×3.2%
Chokwang Leather43.6×0.7×4.8×57.9×0.0%
Handsome7.2×0.3×0.3×—0.0%
JS4.2×0.6×0.2×—5.1%
Hansae9.3×0.4×0.2×—0.0%
Similar companies (median)6.4×0.5×0.3×31.2×1.6%

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

Also known as: Gritee / 그리티 / 204020 / KRX:204020

Source: KRX statistical information