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Point Engineering

256630 · KOSDAQ · ₩256630 · 포인트엔지니어링

₩4,000 ₩0 (0.00%)End-of-day · Oct 29, 2026 · End-of-day prices.
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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.

Fair value per share

₩277

vs the current price (₩4,000)

Enterprise value
−₩12B
Equity value
₩3.2B
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 93% 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 ₩4,000, the model needs an operating margin of 11.5% every year (it uses −0.3%).
  • Margins ranged from −34.3% to 6.7% 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.
  • 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.

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
₩97
−97.6%
Base
₩277
−93.1%
Bull
₩723
−81.9%

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 (−0.3%).

Revenue growth

  • -3%

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

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

  • -1.5%

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

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

  • 0%

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

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

  • 1.5%

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

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

Business

  • -0.3%

    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.

  • 14%

    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).

  • 17.6%

    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).

  • 19.4%

    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.

  • 4.08%

    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.

  • 0.77

    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 0.65, 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.

  • 5.58%

    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)
₩35B
Net debt (borrowings and leases − cash and deposits)
−₩12B
+ Stakes and investments
₩3.6B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩114M
Shares
11,599,414
Share price
₩4,000
Market cap
₩46B

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₩26B₩31B₩36B₩34B₩33B₩33B₩33B₩35B
Growth−33.6%18.6%16.0%−3.0%−1.5%0.0%1.5%3.0%
EBIT−₩9B−₩1.3B₩832M−₩101M−₩99M−₩99M−₩100M−₩104M
EBIT margin−34.3%−4.2%2.3%−0.3%−0.3%−0.3%−0.3%−0.3%
After-tax EBIT−₩6.5B−₩948M₩603M−₩73M−₩72M−₩72M−₩73M−₩75M
+ Depreciation———₩4.7B₩4.6B₩4.6B₩4.7B₩4.8B
− Capital spending₩8.2B₩3.4B₩3.8B₩5.9B₩5.8B₩5.8B₩5.9B₩6.1B
− Working capital−₩31B₩1.5B−₩1.5B−₩201M−₩97M₩0₩96M₩195M
Free cash flow———−₩1.1B−₩1.2B−₩1.3B−₩1.4B−₩1.5B
Discount factor———0.9230.8520.7870.7260.671
Present value———−₩995M−₩991M−₩991M−₩999M−₩1B

Terminal value −₩11B, worth −₩7.5B today: 60% 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 ₩5,739 a share)Now 0.70×₩4,8230.84×₩6,7481.18×₩12,9582.26×
P/E on run-rate earnings (Q2 2026 × 4: ₩562 a share)Now 7.12×₩12,05621.5×₩19,57234.9×₩31,16855.5×

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%
7.3%₩305₩215₩107——
7.8%₩369₩291₩199₩89—
8.3%₩424₩356₩277₩184₩73
8.8%₩472₩413₩344₩264₩169
9.3%₩515₩462₩402₩332₩251

Now (TTM)

Market cap
₩46B
Enterprise value
₩34B
P/E
—
P/B
0.7×
P/S
1.3×
EV/EBITDA
—
Dividend yield
1.3%

Over time (at each year end)

20252024202320222021
Price₩5,305₩5,755₩8,242₩9,884₩16,639
Market cap₩62B₩67B₩96B₩115B₩193B
P/E—49.3×—147.0×47.6×
P/B0.9×0.9×1.4×1.5×2.5×
P/S1.7×2.2×3.7×2.9×4.3×
EV/EBITDA—————
Dividend yield0.9%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Point Engineering—0.7×1.3×—1.3%
CS Wind372.3×1.3×0.6×—2.6%
Hankuk Carbon7.8×1.2×0.9×—2.1%
Taewoong63.8×0.8×1.3×20.4×0.0%
YG-15.3×0.8×0.5×—1.8%
Bosung Power Technology18.9×2.1×1.8×8.6×0.0%
Hansun Engineering36.1×2.6×3.0×14.4×0.0%
Similar companies (median)27.5×1.2×1.1×14.4×0.9%

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

Also known as: Point Engineering / 포인트엔지니어링 / 256630 / KRX:256630

Source: KRX statistical information