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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.

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 65% 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 ₩77,200, the model needs an operating margin of 27.6% every year (it uses 11.4%).
• Or revenue growth +38.4 points a year higher than assumed in each of the 5 years.
• Analysts' forecasts for 2026: revenue ₩409B, operating profit ₩69B (16.9% margin) (1 broker). The model starts from the last 12 months reported.
• Analysts' forecasts for 2027: revenue ₩482B, operating profit ₩88B (18.3% margin) (1 broker). The model starts from the last 12 months reported.
• Margins ranged from 3.4% to 16.6% 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.
• 33% 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 21.0× against a typical 61.6× 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

₩16,859

−78.2%

Base

₩26,733

−65.4%

Bull

₩44,058

−42.9%

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

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Starting point

Revenue (TTM to H1 2026)

₩386B

Net debt (borrowings and leases − cash and deposits)

−₩109B

+ Stakes and investments

₩2.5B

Associates, long-term financial assets and deposits (book value)

Shares

20,876,638

Share price

₩77,200

Market cap

₩1.6T

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.

Terminal value ₩587B, worth ₩411B today: 92% 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 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.