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Advanced Process Systems

265520 · KOSDAQ · ₩265520 · AP시스템

₩16,590▼ ₩890 (5.09%)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

₩47,012

vs the current price (₩16,590)

Enterprise value
₩615B
Equity value
₩708B
WACC
8.1%

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 183% 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 ₩16,590, the model needs an operating margin of 3.4% every year (it uses 10.3%).
  • Margins ranged from 7.2% to 18.6% 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.
  • Today's P/E is 4.8× against a typical 4.9× 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
₩30,427
+83.4%
Base
₩47,012
+183.4%
Bull
₩74,038
+346.3%

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 (10.3%).

Revenue growth

  • -1.8%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.8% 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 (-1.8% a year, annual reports), fading to 3% by year 5.

Business

  • 10.3%

    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.

  • 4.8%

    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%

    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).

  • 7.5%

    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.

  • 0.74

    How much the share moves when the market moves: 1 means just like the market.

    Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.61, 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)
₩587B
Net debt (borrowings and leases − cash and deposits)
−₩93B
Shares
15,050,821
Share price
₩16,590
Market cap
₩250B

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₩534B₩517B₩460B₩576B₩573B₩576B₩587B₩604B
Growth9.7%−3.2%−10.9%−1.8%−0.6%0.6%1.8%3.0%
EBIT₩60B₩47B₩33B₩59B₩59B₩59B₩60B₩62B
EBIT margin11.3%9.1%7.2%10.3%10.3%10.3%10.3%10.3%
After-tax EBIT₩44B₩34B₩24B₩43B₩43B₩43B₩44B₩45B
+ Depreciation———₩28B₩27B₩28B₩28B₩29B
− Capital spending₩7.5B₩13B₩65B₩35B₩34B₩35B₩35B₩36B
− Working capital₩3.5B₩17B₩3.6B−₩792M−₩259M₩258M₩778M₩1.3B
Free cash flow———₩37B₩36B₩36B₩36B₩37B
Discount factor———0.9250.8560.7920.7330.678
Present value———₩34B₩31B₩28B₩26B₩25B

Terminal value ₩693B, worth ₩470B today: 76% 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 ₩24,694 a share)Now 0.67×₩18,7200.76×₩25,3441.03×₩44,6081.81×
Price / earnings (last 12 months: ₩3,439 a share)Now 4.82×₩12,4873.63×₩17,0034.94×₩34,1389.93×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,523 a share)Now 6.57×₩9,1623.63×₩12,4764.94×₩25,0479.93×

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%
7.1%₩48,791₩51,710₩55,202₩59,454₩64,747
7.6%₩45,473₩47,890₩50,739₩54,146₩58,296
8.1%₩42,626₩44,653₩47,012₩49,792₩53,117
8.6%₩40,157₩41,876₩43,854₩46,156₩48,869
9.1%₩37,995₩39,466₩41,143₩43,074₩45,321

Now (TTM)

Market cap
₩250B
Enterprise value
₩156B
P/E
4.8×
P/B
0.7×
P/S
0.4×
EV/EBITDA
—
Dividend yield
2.0%

Over time (at each year end)

20252024202320222021
Price₩19,370₩15,760₩22,300₩18,350₩25,200
Market cap₩292B₩237B₩336B₩276B₩379B
P/E12.3×4.6×5.6×3.4×6.6×
P/B0.8×0.7×1.0×1.0×2.0×
P/S0.6×0.5×0.6×0.6×0.7×
EV/EBITDA—————
Dividend yield1.8%3.4%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Advanced Process Systems4.8×0.7×0.4×—2.0%
Doosan Enerbility193.9×4.3×2.0×—0.0%
Hanmi Semiconductor78.4×23.3×31.6×70.6×0.4%
Jusung Engineering1,058.2×13.0×34.0×2,036.0×0.0%
Rainbow Robotics4,137.6×53.0×156.2×—0.0%
EO Technics44.1×6.4×10.8×—0.0%
Doosan Bobcat13,622.5×911.6×733.9×—3.5%
Similar companies (median)626.0×18.1×32.8×1,053.3×0.0%

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

Also known as: Advanced Process Systems / AP시스템 / 265520 / KRX:265520

Source: KRX statistical information