KOSPI · 248070 · Electronic components · ₩248070

Solum솔루엠

248070 · KOSPI · ₩248070 · 솔루엠

₩14,160▲ ₩100 (0.71%)End-of-day · Oct 27, 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

₩3,051

vs the current price (₩14,160)

Enterprise value: ₩523B
Equity value: ₩146B
WACC: 6.6%

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 78% 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 ₩14,160, the model needs an operating margin of 5.6% every year (it uses 3.8%).
Or revenue growth +21.9 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩2T, operating profit ₩79B (4.0% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩2.3T, operating profit ₩142B (6.1% margin) (1 broker). The model starts from the last 12 months reported.
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 62.1× against a typical 24.0× 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: —
Base: ₩3,051; −78.4%
Bull: ₩28,134; +98.7%

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 (3.8%).

Revenue growth

Revenue growth, year 10.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.1% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (0.1% 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 (0.1% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin3.8%
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 & amortisation1.7%
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 spending6.7%
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 capital19.2%
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 rate4.03%
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.
Beta0.71
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 0.57, 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)5.53%
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): ₩1.9T
Net debt (borrowings and leases − cash and deposits): ₩368B
+ Stakes and investments: ₩4.1B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩14B
Shares: 47,816,236
Share price: ₩14,160
Market cap: ₩677B

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	₩2T	₩1.6T	₩1.7T	₩1.9T	₩1.9T	₩1.9T	₩2T	₩2T
Growth	15.1%	−18.3%	6.6%	0.1%	0.8%	1.6%	2.3%	3.0%
EBIT	₩155B	₩69B	₩47B	₩71B	₩72B	₩73B	₩75B	₩77B
EBIT margin	7.9%	4.3%	2.7%	3.8%	3.8%	3.8%	3.8%	3.8%
After-tax EBIT	₩112B	₩50B	₩34B	₩52B	₩52B	₩53B	₩54B	₩56B
+ Depreciation	₩33B	—	—	₩32B	₩32B	₩33B	₩33B	₩34B
− Capital spending	₩125B	₩126B	₩100B	₩125B	₩126B	₩128B	₩131B	₩135B
− Working capital	−₩38B	−₩13B	₩27B	₩359M	₩2.9B	₩5.8B	₩8.5B	₩11B
Free cash flow	₩58B	—	—	−₩42B	−₩45B	−₩49B	−₩53B	−₩57B
Discount factor	—	—	—	0.938	0.881	0.827	0.776	0.728
Present value	—	—	—	−₩40B	−₩40B	−₩40B	−₩41B	−₩41B

Terminal value ₩996B, worth ₩725B today: 139% 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 ₩11,969 a share)Now 1.18×	₩17,1271.43×	₩32,5542.72×	₩47,6243.98×
Price / earnings (last 12 months: ₩228 a share)Now 62.1×	₩2,52011.1×	₩5,46424.0×	₩15,55368.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩575 a share)Now 24.6×	₩6,35911.1×	₩13,78824.0×	₩39,25268.3×

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%
5.6%	₩4,878	₩6,308	₩8,132	₩10,543	₩13,885
6.1%	₩2,887	₩3,949	₩5,266	₩6,944	₩9,162
6.6%	₩1,274	₩2,078	₩3,051	₩4,258	₩5,796
7.1%	—	₩561	₩1,295	₩2,183	₩3,284
7.6%	—	—	—	₩538	₩1,344

Now (TTM)

Market cap: ₩677B
Enterprise value: ₩1T
P/E: 62.1×
P/B: 1.2×
P/S: 0.4×
EV/EBITDA: —
Dividend yield: 0.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩16,590	₩19,210	₩27,300	₩17,400	₩22,450
Market cap	₩793B	₩919B	₩1.3T	₩832B	₩1.1T
P/E	59.0×	23.2×	10.8×	17.6×	80.4×
P/B	1.4×	2.1×	3.3×	2.9×	4.0×
P/S	0.5×	0.6×	0.7×	0.5×	0.9×
EV/EBITDA	—	—	8.1×	10.1×	26.6×
Dividend yield	0.5%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Solum	62.1×	1.2×	0.4×	—	0.5%
Samsung Electro-Mechanics	89.0×	8.8×	7.2×	—	0.2%
Doosan	36.8×	5.2×	0.7×	—	0.4%
Hanwha Systems	67.9×	2.7×	2.9×	—	0.8%
LG Innotek	13.4×	1.4×	0.4×	—	0.5%
Isupetasys	32.5×	7.6×	5.0×	—	0.0%
Daeduck Electronics	41.5×	6.5×	4.7×	—	0.4%
Similar companies (median)	39.2×	5.8×	3.8×	—	0.4%

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

Also known as: Solum / 솔루엠 / 248070 / KRX:248070

Source: KRX statistical information