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Drgem

263690 · KOSDAQ · ₩263690 · 디알젬

₩4,805▼ ₩45 (0.93%)End-of-day · Oct 30, 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

₩11,421

vs the current price (₩4,805)

Enterprise value
₩125B
Equity value
₩129B
WACC
7.3%

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 138% 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 ₩4,805, the model needs an operating margin of 5.2% every year (it uses 10.5%).
  • 37% 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.
  • Today's P/E is 4.4× against a typical 7.9× 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
₩7,038
+46.5%
Base
₩11,421
+137.7%
Bull
₩19,047
+296.4%

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 (10.5%).

Revenue growth

  • -2.3%

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

    Default: the last 3 years' revenue growth (-2.3% a year, annual reports), fading to 3% by year 5.

  • -1%

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

    Default: the last 3 years' revenue growth (-2.3% a year, annual reports), fading to 3% by year 5.

  • 0.4%

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

    Default: the last 3 years' revenue growth (-2.3% a year, annual reports), fading to 3% by year 5.

  • 1.7%

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

    Default: the last 3 years' revenue growth (-2.3% 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 (-2.3% a year, annual reports), fading to 3% by year 5.

Business

  • 10.5%

    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.

  • 5%

    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).

  • 6.2%

    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).

  • 33%

    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.

  • 4.01%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.6

    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 0.15, 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.

  • 5.51%

    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)
₩109B
Net debt (borrowings and leases − cash and deposits)
−₩4.5B
Shares
11,325,610
Share price
₩4,805
Market cap
₩54B

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₩113B₩104B₩103B₩107B₩106B₩106B₩108B₩111B
Growth2.5%−7.9%−1.2%−2.3%−1.0%0.4%1.7%3.0%
EBIT₩10B₩8.9B₩9B₩11B₩11B₩11B₩11B₩12B
EBIT margin8.9%8.5%8.8%10.5%10.5%10.5%10.5%10.5%
After-tax EBIT₩7.3B₩6.4B₩6.5B₩8.1B₩8.1B₩8.1B₩8.2B₩8.5B
+ Depreciation———₩5.3B₩5.3B₩5.3B₩5.4B₩5.6B
− Capital spending₩12B₩3.6B₩4.4B₩6.6B₩6.6B₩6.6B₩6.7B₩6.9B
− Working capital−₩4.9B₩7B−₩343M−₩831M−₩353M₩140M₩596M₩1.1B
Free cash flow———₩7.7B₩7.1B₩6.7B₩6.3B₩6.1B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩7.2B₩6.2B₩5.4B₩4.8B₩4.3B

Terminal value ₩138B, worth ₩97B today: 78% 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 ₩8,659 a share)Now 0.55×₩5,6860.66×₩11,9791.38×₩15,7301.82×
Price / earnings (last 12 months: ₩1,084 a share)Now 4.43×₩5,8605.40×₩8,6007.93×₩10,7029.87×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,263 a share)Now 3.80×₩6,8265.40×₩10,0197.93×₩12,4679.87×

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%
6.3%₩12,262₩13,032₩13,979₩15,171₩16,720
6.8%₩11,227₩11,835₩12,567₩13,466₩14,598
7.3%₩10,357₩10,844₩11,421₩12,115₩12,968
7.8%₩9,615₩10,011₩10,472₩11,019₩11,677
8.3%₩8,975₩9,300₩9,674₩10,111₩10,629

Now (TTM)

Market cap
₩54B
Enterprise value
₩50B
P/E
4.4×
P/B
0.6×
P/S
0.5×
EV/EBITDA
—
Dividend yield
3.7%

Over time (at each year end)

20252024202320222021
Price₩5,340₩5,680₩10,410₩10,600₩12,000
Market cap₩60B₩64B₩118B₩120B₩136B
P/E8.9×6.3×12.8×8.3×10.8×
P/B0.7×0.7×1.5×1.6×2.2×
P/S0.6×0.6×1.0×1.1×1.6×
EV/EBITDA————10.1×
Dividend yield3.3%2.8%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Drgem4.4×0.6×0.5×—3.7%
TSE23.5×5.2×4.3×—0.2%
Kctech19.8×3.0×3.6×15.3×0.5%
Classys12.4×3.1×4.6×9.7×3.8%
Park Systems66.3×4.5×7.9×—0.2%
DI37.8×5.2×2.3×—0.6%
LivsMed—6.1×19.4×—0.0%
Similar companies (median)23.5×4.8×4.5×12.5×0.4%

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

Also known as: Drgem / 디알젬 / 263690 / KRX:263690

Source: KRX statistical information