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265740 · KOSDAQ · ₩265740 · 엔에프씨

₩6,890▲ ₩80 (1.17%)End-of-day · Oct 28, 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

₩11,239

vs the current price (₩6,890)

Enterprise value
₩198B
Equity value
₩201B
WACC
7.5%

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 63% 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 ₩6,890, the model needs an operating margin of 8.2% every year (it uses 11.9%).
  • Or revenue growth −14.6 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −17.6% to 17.5% 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 11.1× against a typical 20.3× 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
₩6,731
−2.3%
Base
₩11,239
+63.1%
Bull
₩18,816
+173.1%

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 (11.9%).

Revenue growth

  • 25%

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

    Default: the last 3 years' revenue growth (32.4% 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 (32.4% 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 (32.4% 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 (32.4% 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 (32.4% a year, annual reports), fading to 3% by year 5.

Business

  • 11.9%

    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.

  • 2.8%

    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).

  • 3.5%

    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).

  • 34.3%

    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.

  • 0.62

    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 0.44, 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)
₩93B
Net debt (borrowings and leases − cash and deposits)
−₩3B
+ Stakes and investments
₩207M
Associates, long-term financial assets and deposits (book value)
Shares
17,863,600
Share price
₩6,890
Market cap
₩123B

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₩43B₩40B₩72B₩116B₩138B₩158B₩171B₩176B
Growth38.9%−6.2%78.1%25.0%19.5%14.0%8.5%3.0%
EBIT₩4.1B−₩7.1B₩13B₩14B₩16B₩19B₩20B₩21B
EBIT margin9.5%−17.6%17.5%11.9%11.9%11.9%11.9%11.9%
After-tax EBIT₩2.9B−₩5.1B₩9.1B₩10B₩12B₩14B₩15B₩15B
+ Depreciation———₩3.2B₩3.9B₩4.4B₩4.8B₩4.9B
− Capital spending₩820M₩221M₩5.7B₩4.1B₩4.8B₩5.5B₩6B₩6.2B
− Working capital₩16B−₩14B₩10B₩7.9B₩7.7B₩6.6B₩4.6B₩1.8B
Free cash flow———₩1.2B₩3.2B₩5.9B₩9B₩12B
Discount factor———0.9300.8650.8050.7480.696
Present value———₩1.1B₩2.8B₩4.7B₩6.7B₩8.5B

Terminal value ₩250B, worth ₩174B today: 88% 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 ₩3,992 a share)Now 1.73×₩3,7380.94×₩5,4001.35×₩8,4862.13×
Price / earnings (last 12 months: ₩620 a share)Now 11.1×₩6,89011.1×₩12,55120.3×₩35,04156.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩16 a share)Now 430.2×₩17811.1×₩32420.3×₩90656.5×

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%
6.5%₩12,104₩12,963₩14,008₩15,311₩16,980
7.0%₩10,980₩11,665₩12,484₩13,482₩14,725
7.5%₩10,032₩10,586₩11,239₩12,020₩12,971
8.0%₩9,220₩9,675₩10,204₩10,826₩11,570
8.5%₩8,519₩8,896₩9,329₩9,832₩10,425

Now (TTM)

Market cap
₩123B
Enterprise value
₩120B
P/E
11.1×
P/B
1.7×
P/S
1.3×
EV/EBITDA
—
Dividend yield
0.9%

Over time (at each year end)

20252024202320222021
Price₩4,215₩2,298₩4,400₩4,375₩6,800
Market cap₩75B₩41B₩79B₩78B₩121B
P/E7.5×—21.4×47.0×20.9×
P/B1.2×0.7×1.3×1.4×2.2×
P/S1.1×1.0×1.8×2.5×3.1×
EV/EBITDA—————
Dividend yield1.4%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
NFC11.1×1.7×1.3×—0.9%
APR25.0×16.7×4.7×24.7×1.8%
Amorepacific25.5×1.3×1.6×—1.0%
LG H&H—0.7×0.6×6.9×0.8%
Cosmax16.0×4.6×1.1×13.7×1.3%
Kolmar Korea15.0×2.8×0.9×—0.7%
d'Alba Global17.0×7.3×2.9×—1.8%
Similar companies (median)17.0×3.7×1.4×13.7×1.1%

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

Also known as: NFC / 엔에프씨 / 265740 / KRX:265740

Source: KRX statistical information