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SK D&D

210980 · KOSPI · ₩210980 · SK디앤디

₩2,545▲ ₩200 (8.53%)End-of-day · Oct 28, 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

₩10,997

vs the current price (₩2,545)

Enterprise value
₩724B
Equity value
₩696B
WACC
5.0%

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 332% 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 ₩2,545, the model needs an operating margin of 3.4% every year (it uses 10.6%).
  • Margins ranged from 6.2% to 39.7% 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
₩5,847
+129.8%
Base
₩10,997
+332.1%
Bull
₩22,880
+799.0%

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 (10.6%).

Revenue growth

  • -7.5%

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

    Default: the last 3 years' revenue growth (-7.5% a year, annual reports), fading to 3% by year 5.

  • -4.9%

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

    Default: the last 3 years' revenue growth (-7.5% a year, annual reports), fading to 3% by year 5.

  • -2.3%

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

    Default: the last 3 years' revenue growth (-7.5% a year, annual reports), fading to 3% by year 5.

  • 0.4%

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

    Default: the last 3 years' revenue growth (-7.5% 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 (-7.5% a year, annual reports), fading to 3% by year 5.

Business

  • 10.6%

    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.

  • 0.6%

    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).

  • 0.8%

    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).

  • 40%

    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 0.37, 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)
₩372B
Net debt (borrowings and leases − cash and deposits)
₩418B
+ Stakes and investments
₩399B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩9.3B
Shares
63,297,005
Share price
₩2,545
Market cap
₩161B

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₩480B₩871B₩446B₩344B₩327B₩320B₩321B₩331B
Growth−14.9%81.6%−48.8%−7.5%−4.9%−2.3%0.4%3.0%
EBIT₩190B₩54B₩38B₩36B₩35B₩34B₩34B₩35B
EBIT margin39.7%6.2%8.5%10.6%10.6%10.6%10.6%10.6%
After-tax EBIT₩138B₩39B₩27B₩26B₩25B₩25B₩25B₩25B
+ Depreciation———₩2.1B₩2B₩1.9B₩1.9B₩2B
− Capital spending₩6.3B₩5.6B₩1.9B₩2.8B₩2.6B₩2.6B₩2.6B₩2.6B
− Working capital−₩41B−₩374B₩56B−₩11B−₩6.7B−₩3B₩512M₩3.9B
Free cash flow———₩37B₩31B₩27B₩24B₩21B
Discount factor———0.9520.9070.8640.8230.784
Present value———₩35B₩28B₩23B₩19B₩16B

Terminal value ₩768B, worth ₩602B today: 83% 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 ₩7,903 a share)Now 0.32×₩4,7570.60×₩6,0350.76×₩8,6851.10×

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%
4.0%₩11,994₩13,800₩16,507₩21,016₩30,040
4.5%₩10,262₩11,488₩13,201₩15,769₩20,046
5.0%₩8,962₩9,836₩10,997₩12,621₩15,054
5.5%₩7,952₩8,596₩9,423₩10,522₩12,059
6.0%₩7,143₩7,632₩8,241₩9,023₩10,062

Now (TTM)

Market cap
₩161B
Enterprise value
₩579B
P/E
—
P/B
0.3×
P/S
0.4×
EV/EBITDA
—
Dividend yield
5.3%

Over time (at each year end)

20252024202320222021
Price₩8,634₩4,919₩11,377₩7,733₩12,245
Market cap₩547B₩311B₩720B₩489B₩775B
P/E77.0×7.0×7.0×6.4×5.8×
P/B1.0×0.5×0.9×0.7×1.2×
P/S1.2×0.4×1.5×0.9×1.0×
EV/EBITDA—————
Dividend yield1.6%8.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SK D&D—0.3×0.4×—5.3%
SK Reit50.0×0.8×23.0×—1.3%
Lotte Reit59.8×1.1×16.4×—2.8%
Hanwha Reit68.0×1.4×16.6×45.3×2.5%
ESR Kendall Square Reit1,180.4×0.7×11.6×73.5×4.5%
Shinhan Alpha REIT98.0×1.2×8.0×34.4×3.0%
SamsungFN Reit148.2×1.1×37.2×—1.5%
Similar companies (median)83.0×1.1×16.5×45.3×2.6%

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

Also known as: SK D&D / SK디앤디 / 210980 / KRX:210980

Source: KRX statistical information