KOSPI · 229640 · Holding companies · ₩229640

LS Eco EnergyLS에코에너지

229640 · KOSPI · ₩229640 · LS에코에너지

₩54,700▼ ₩1,800 (3.19%)End-of-day · Oct 28, 2026 · End-of-day prices.

Valuation model · Discounted cash flow (DCF)

This is a holding company, but we don't have its stakes in listed companies yet, so we use a discounted cash flow for now.

Fair value per share

₩22,790

vs the current price (₩54,700)

Enterprise value: ₩643B
Equity value: ₩698B
WACC: 8.3%

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 58% 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 ₩54,700, the model needs an operating margin of 11.7% every year (it uses 4.9%).
Or revenue growth +26.6 points a year higher than assumed in each of the 5 years.
Today's P/E is 37.8× against a typical 30.0× 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: ₩10,959; −80.0%
Base: ₩22,790; −58.3%
Bull: ₩42,574; −22.2%

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

Assumptions

Cycle options

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (4.9%).

Revenue growth

Revenue growth, year 15.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 24.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 34.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 43.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (5.5% 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 (5.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin4.9%
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.
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 & amortisation0.2%
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).
Capital spending0.3%
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 capital11.2%
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 rate4.08%
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.
Beta0.77
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 0.66, 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)5.58%
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): ₩1.1T
Net debt (borrowings and leases − cash and deposits): −₩72B
+ Stakes and investments: ₩12M; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩17B
Shares: 30,624,879
Share price: ₩54,700
Market cap: ₩1.7T

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	₩731B	₩869B	₩960B	₩1.2T	₩1.2T	₩1.3T	₩1.3T	₩1.4T
Growth	−10.7%	18.9%	10.5%	5.5%	4.8%	4.2%	3.6%	3.0%
EBIT	₩29B	₩45B	₩67B	₩58B	₩61B	₩63B	₩65B	₩67B
EBIT margin	4.0%	5.2%	7.0%	4.9%	4.9%	4.9%	4.9%	4.9%
After-tax EBIT	₩21B	₩32B	₩48B	₩42B	₩44B	₩46B	₩47B	₩49B
+ Depreciation	—	—	—	₩2.4B	₩2.5B	₩2.6B	₩2.7B	₩2.7B
− Capital spending	₩3.5B	₩1.8B	₩2.1B	₩3.5B	₩3.7B	₩3.9B	₩4B	₩4.1B
− Working capital	−₩181B	₩29B	₩135B	₩6.9B	₩6.3B	₩5.8B	₩5.2B	₩4.5B
Free cash flow	—	—	—	₩34B	₩36B	₩39B	₩41B	₩43B
Discount factor	—	—	—	0.923	0.852	0.787	0.726	0.671
Present value	—	—	—	₩31B	₩31B	₩30B	₩30B	₩29B

Terminal value ₩734B, worth ₩492B today: 77% 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 ₩8,202 a share)Now 6.67×	₩11,6211.42×	₩35,2674.30×	₩58,3277.11×
Price / earnings (last 12 months: ₩1,447 a share)Now 37.8×	₩23,59416.3×	₩43,42930.0×	₩70,71248.9×
P/E on run-rate earnings (preliminary Q3 2026 × 4: ₩1,613 a share)Now 33.9×	₩26,31416.3×	₩48,43730.0×	₩78,86648.9×

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%
7.3%	₩24,090	₩25,356	₩26,857	₩28,667	₩30,891
7.8%	₩22,389	₩23,430	₩24,648	₩26,092	₩27,831
8.3%	₩20,922	₩21,789	₩22,790	₩23,960	₩25,348
8.8%	₩19,644	₩20,372	₩21,205	₩22,167	₩23,292
9.3%	₩18,521	₩19,138	₩19,838	₩20,638	₩21,562

Now (TTM)

Market cap: ₩1.7T
Enterprise value: ₩1.6T
P/E: 37.8×
P/B: 6.7×
P/S: 1.5×
EV/EBITDA: —
Dividend yield: 0.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩34,550	₩31,000	₩20,900	₩7,290	₩7,930
Market cap	₩1.1T	₩949B	₩640B	₩223B	₩243B
P/E	25.2×	30.4×	155.0×	—	16.5×
P/B	5.1×	5.2×	4.4×	1.5×	1.6×
P/S	1.1×	1.1×	0.9×	0.3×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.7%	0.6%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
LS Eco Energy	37.8×	6.7×	1.5×	—	0.5%
SK Square	3.7×	2.2×	98.7×	3.6×	0.0%
KB Financial Group	8.7×	0.9×	—	9.5×	2.8%
Shinhan Financial Group	7.7×	0.7×	—	10.1×	2.9%
SK	4.9×	1.1×	0.3×	—	1.5%
Hana Financial Group	7.6×	0.7×	—	9.9×	3.6%
Woori Financial Group	6.9×	0.6×	—	8.3×	4.5%
Similar companies (median)	7.3×	0.8×	49.5×	9.5×	2.9%

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

Also known as: LS Eco Energy / LS에코에너지 / 229640 / KRX:229640

Source: KRX statistical information