KOSDAQ · 214430 · Electronic components · ₩214430

i3system아이쓰리시스템

214430 · KOSDAQ · ₩214430 · 아이쓰리시스템

₩60,100▼ ₩2,000 (3.22%)End-of-day · Oct 30, 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

₩30,328

vs the current price (₩60,100)

Enterprise value: ₩168B
Equity value: ₩222B
WACC: 7.7%

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 50% 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 ₩60,100, the model needs an operating margin of 20.0% every year (it uses 10.5%).
Or revenue growth +23.9 points a year higher than assumed in each of the 5 years.
Margins ranged from 1.8% to 13.2% 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.
31% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
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 24.4× against a typical 28.1× 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: ₩19,727; −67.2%
Base: ₩30,328; −49.5%
Bull: ₩48,283; −19.7%

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 (10.5%).

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 margin10.5%
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 & amortisation3.9%
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 spending8.2%
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 capital30%
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 rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta0.68
How much the share moves when the market moves: 1 means just like the market.
Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.52, 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)5.51%
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): ₩133B
Net debt (borrowings and leases − cash and deposits): −₩53B
+ Stakes and investments: ₩741M; Associates, long-term financial assets and deposits (book value)
Shares: 7,307,215
Share price: ₩60,100
Market cap: ₩439B

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	₩122B	₩121B	₩124B	₩151B	₩168B	₩183B	₩193B	₩199B
Growth	45.0%	−0.7%	3.0%	14.0%	11.3%	8.5%	5.8%	3.0%
EBIT	₩12B	₩15B	₩16B	₩16B	₩18B	₩19B	₩20B	₩21B
EBIT margin	10.0%	12.2%	13.2%	10.5%	10.5%	10.5%	10.5%	10.5%
After-tax EBIT	₩8.8B	₩11B	₩12B	₩12B	₩13B	₩14B	₩15B	₩15B
+ Depreciation	₩4.7B	₩5.1B	₩4.5B	₩5.9B	₩6.6B	₩7.1B	₩7.5B	₩7.8B
− Capital spending	—	₩5.3B	₩15B	₩12B	₩14B	₩15B	₩16B	₩16B
− Working capital	₩2.3B	₩8.4B	₩8.1B	₩5.6B	₩5.1B	₩4.3B	₩3.2B	₩1.7B
Free cash flow	—	₩2B	−₩6.5B	−₩562M	₩449M	₩1.8B	₩3.2B	₩4.9B
Discount factor	—	—	—	0.928	0.861	0.799	0.742	0.689
Present value	—	—	—	−₩522M	₩387M	₩1.4B	₩2.4B	₩3.3B

Terminal value ₩234B, worth ₩161B today: 96% 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 ₩19,856 a share)Now 3.03×	₩35,7791.80×	₩58,6152.95×	₩97,5684.91×
Price / earnings (last 12 months: ₩2,459 a share)Now 24.4×	₩52,62321.4×	₩69,01828.1×	₩111,85045.5×

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%
6.7%	₩32,230	₩34,067	₩36,285	₩39,018	₩42,473
7.2%	₩29,788	₩31,264	₩33,016	₩35,131	₩37,737
7.7%	₩27,718	₩28,921	₩30,328	₩31,997	₩34,012
8.2%	₩25,944	₩26,935	₩28,080	₩29,419	₩31,008
8.7%	₩24,407	₩25,232	₩26,174	₩27,264	₩28,538

Now (TTM)

Market cap: ₩439B
Enterprise value: ₩386B
P/E: 24.4×
P/B: 3.0×
P/S: 3.3×
EV/EBITDA: 17.2×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩76,500	₩45,000	₩31,750	₩18,550	₩19,450
Market cap	₩559B	₩329B	₩232B	₩136B	₩142B
P/E	29.8×	22.0×	18.5×	21.9×	42.3×
P/B	4.0×	3.1×	2.6×	1.7×	1.9×
P/S	4.5×	2.7×	1.9×	1.6×	1.8×
EV/EBITDA	24.4×	14.9×	12.8×	12.6×	18.9×
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
i3system	24.4×	3.0×	3.3×	17.2×	0.0%
Samsung Electro-Mechanics	88.7×	8.7×	7.2×	—	0.2%
Doosan	34.5×	4.9×	0.6×	—	0.4%
Hanwha Systems	65.1×	2.5×	2.8×	—	0.8%
LG Innotek	11.6×	1.2×	0.3×	—	0.6%
Isupetasys	30.8×	7.2×	4.7×	—	0.0%
Daeduck Electronics	38.8×	6.0×	4.4×	—	0.4%
Similar companies (median)	36.6×	5.5×	3.6×	—	0.4%

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

Also known as: i3system / 아이쓰리시스템 / 214430 / KRX:214430

Source: KRX statistical information