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Silicon 2

257720 · KOSDAQ · ₩257720 · 실리콘투

₩29,100▼ ₩100 (0.34%)End-of-day · Oct 27, 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

₩55,111

vs the current price (₩29,100)

Enterprise value
₩3.6T
Equity value
₩3.6T
WACC
7.8%

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 89% 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 ₩29,100, the model needs an operating margin of 9.1% every year (it uses 14.9%).
  • Or revenue growth −17.0 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 6.7% to 19.9% 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 8.6× against a typical 20.5× 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
₩34,690
+19.2%
Base
₩55,111
+89.4%
Bull
₩88,376
+203.7%

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 (14.9%).

Revenue growth

  • 25%

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

    Default: the last 3 years' revenue growth (89% a year, annual reports), fading to 3% by year 5.

  • 19.5%

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

    Default: the last 3 years' revenue growth (89% a year, annual reports), fading to 3% by year 5.

  • 14%

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

    Default: the last 3 years' revenue growth (89% a year, annual reports), fading to 3% by year 5.

  • 8.5%

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

    Default: the last 3 years' revenue growth (89% 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 (89% a year, annual reports), fading to 3% by year 5.

Business

  • 14.9%

    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.

  • 4.6%

    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).

  • 5.7%

    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).

  • 27.9%

    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.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.68

    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 0.52, 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.

  • 5.61%

    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)
₩1.4T
Net debt (borrowings and leases − cash and deposits)
₩51B
+ Stakes and investments
₩17B
Associates, long-term financial assets and deposits (book value)
Shares
65,576,252
Share price
₩29,100
Market cap
₩1.9T

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₩343B₩692B₩1.1T₩1.7T₩2T₩2.3T₩2.5T₩2.6T
Growth107.5%101.7%61.4%25.0%19.5%14.0%8.5%3.0%
EBIT₩48B₩138B₩205B₩252B₩301B₩344B₩373B₩384B
EBIT margin13.9%19.9%18.4%14.9%14.9%14.9%14.9%14.9%
After-tax EBIT₩35B₩100B₩149B₩183B₩219B₩249B₩270B₩278B
+ Depreciation———₩78B₩93B₩106B₩115B₩119B
− Capital spending₩19B₩77B₩7B₩97B₩115B₩131B₩143B₩147B
− Working capital₩39B₩84B₩229B₩94B₩92B₩79B₩55B₩21B
Free cash flow———₩70B₩104B₩145B₩188B₩229B
Discount factor———0.9280.8610.7990.7420.688
Present value———₩65B₩90B₩116B₩140B₩158B

Terminal value ₩4.5T, worth ₩3.1T today: 84% 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 ₩10,505 a share)Now 2.77×₩20,3041.93×₩50,6224.82×₩129,88612.4×
Price / earnings (last 12 months: ₩3,368 a share)Now 8.64×₩44,72913.3×₩68,90520.5×₩103,97030.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,412 a share)Now 6.60×₩58,59013.3×₩90,25920.5×₩136,18930.9×

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%
6.8%₩58,540₩62,820₩67,992₩74,372₩82,442
7.3%₩53,324₩56,801₩60,932₩65,926₩72,085
7.8%₩48,890₩51,755₩55,111₩59,099₩63,918
8.3%₩45,077₩47,465₩50,229₩53,468₩57,316
8.8%₩41,763₩43,774₩46,079₩48,746₩51,871

Now (TTM)

Market cap
₩1.9T
Enterprise value
₩1.9T
P/E
8.6×
P/B
2.8×
P/S
1.4×
EV/EBITDA
—
Dividend yield
1.1%

Over time (at each year end)

20252024202320222021
Price₩38,650₩32,700₩7,710₩2,455₩3,217
Market cap₩2.5T₩2.1T₩506B₩161B₩211B
P/E15.0×17.8×13.3×14.4×25.6×
P/B5.5×8.2×3.7×1.7×2.4×
P/S2.3×3.1×1.5×1.0×1.6×
EV/EBITDA—————
Dividend yield0.8%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Silicon 28.6×2.8×1.4×—1.1%
Samsung C&T17.5×0.5×1.1×—0.9%
POSCO International10.6×1.3×0.3×—3.7%
ISC41.4×5.5×11.5×—0.6%
Youngone5.1×0.7×0.7×—3.1%
Dong SUH Companies19.0×1.6×5.1×—4.1%
Shinsegae13.7×0.4×0.3×—2.1%
Similar companies (median)15.6×1.0×0.9×—2.6%

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

Also known as: Silicon 2 / 실리콘투 / 257720 / KRX:257720

Source: KRX statistical information