Ask Warren

Genesem

217190 · KOSDAQ · ₩217190 · 제너셈

₩8,140▲ ₩800 (10.90%)End-of-day · Oct 27, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩2,491

vs the current price (₩8,140)

Enterprise value
₩48B
Equity value
₩33B
WACC
7.5%

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 69% 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 ₩8,140, the model needs an operating margin of 16.8% every year (it uses 6.9%).
  • Or revenue growth +26.6 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 1.8% to 14.3% 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.
  • Today's P/E is 569.6× against a typical 11.3× 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
₩802
−90.1%
Base
₩2,491
−69.4%
Bull
₩5,411
−33.5%

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 (6.9%).

Revenue growth

  • -1.6%

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

    Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.

  • -0.5%

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

    Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.

  • 0.7%

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

    Default: the last 3 years' revenue growth (-1.6% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.6% 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 (-1.6% a year, annual reports), fading to 3% by year 5.

Business

  • 6.9%

    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.

  • 0.2%

    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).

  • 0.2%

    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).

  • 18.7%

    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.

  • 4.03%

    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.

  • 0.73

    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 0.6, 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.

  • 5.53%

    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)
₩60B
Net debt (borrowings and leases − cash and deposits)
₩16B
+ Stakes and investments
₩15M
Associates, long-term financial assets and deposits (book value)
Shares
13,153,761
Share price
₩8,140
Market cap
₩107B

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₩56B₩69B₩57B₩59B₩59B₩59B₩60B₩62B
Growth−5.3%21.8%−17.4%−1.6%−0.5%0.7%1.8%3.0%
EBIT₩3.6B₩6.5B₩1B₩4.1B₩4B₩4.1B₩4.1B₩4.3B
EBIT margin6.3%9.5%1.8%6.9%6.9%6.9%6.9%6.9%
After-tax EBIT₩2.6B₩4.7B₩746M₩2.9B₩2.9B₩2.9B₩3B₩3.1B
+ Depreciation———₩118M₩117M₩118M₩120M₩124M
− Capital spending₩11M₩85M₩241M₩118M₩117M₩118M₩120M₩124M
− Working capital₩677M−₩2.2B—−₩179M−₩55M₩77M₩198M₩337M
Free cash flow———₩3.1B₩3B₩2.9B₩2.8B₩2.8B
Discount factor———0.9300.8650.8040.7480.695
Present value———₩2.9B₩2.6B₩2.3B₩2.1B₩1.9B

Terminal value ₩52B, worth ₩36B today: 76% 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 ₩3,747 a share)Now 2.17×₩4,8821.30×₩6,4131.71×₩12,0273.21×
Price / earnings (last 12 months: ₩14 a share)Now 569.6×₩855.94×₩16111.3×₩49234.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩335 a share)Now 24.3×₩1,9925.94×₩3,77511.3×₩11,53434.4×

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%
6.5%₩2,736₩2,985₩3,289₩3,667₩4,151
7.0%₩2,412₩2,612₩2,850₩3,141₩3,503
7.5%₩2,138₩2,300₩2,491₩2,719₩2,997
8.0%₩1,903₩2,036₩2,191₩2,374₩2,592
8.5%₩1,699₩1,810₩1,937₩2,086₩2,260

Now (TTM)

Market cap
₩107B
Enterprise value
₩123B
P/E
569.6×
P/B
2.2×
P/S
1.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩5,110₩4,523₩9,046₩3,402₩5,817
Market cap₩67B₩59B₩119B₩45B₩77B
P/E71.9×9.8×31.9×3.7×14.6×
P/B—1.2×2.8×1.1×2.8×
P/S1.2×0.9×2.1×0.8×1.3×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Genesem569.6×2.2×1.8×—0.0%
Doosan Enerbility208.4×4.6×2.1×—0.0%
Hanmi Semiconductor82.2×24.4×33.1×74.0×0.4%
Jusung Engineering1,121.0×13.7×36.0×2,158.2×0.0%
Rainbow Robotics4,006.5×51.3×151.2×—0.0%
EO Technics44.8×6.5×10.9×—0.0%
Doosan Bobcat13,664.7×914.4×736.1×—3.5%
Similar companies (median)664.7×19.1×34.5×1,116.1×0.0%

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

Also known as: Genesem / 제너셈 / 217190 / KRX:217190

Source: KRX statistical information