KOSPI · 267290 · Utilities · ₩267290

Kyungdong City Gas경동도시가스

267290 · KOSPI · ₩267290 · 경동도시가스

₩20,750▲ ₩50 (0.24%)End-of-day · Oct 27, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩103,618

vs the current price (₩20,750)

Enterprise value: ₩285B
Equity value: ₩611B
WACC: 7.4%

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 399% 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 ₩20,750, the model needs an operating margin of −0.9% every year (it uses 1.7%).
Today's P/E is 3.3× against a typical 4.1× 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: ₩41,110; +98.1%
Base: ₩103,618; +399.4%
Bull: ₩216,848; +945.1%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (1.7%).

Revenue growth

Revenue growth, year 1-8.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-5.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-2.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-8.6% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.7%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1.3%
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).
Capital spending1.6%
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).
Working capital-7%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
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.
Beta0.6
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 0.13, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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): ₩1.7T
Net debt (borrowings and leases − cash and deposits): −₩311B
+ Stakes and investments: ₩14B; Associates, long-term financial assets and deposits (book value)
Shares: 5,895,406
Share price: ₩20,750
Market cap: ₩122B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩1.8T	₩1.8T	₩1.8T	₩1.6T	₩1.5T	₩1.4T	₩1.4T	₩1.5T
Growth	−21.9%	−0.4%	−1.8%	−8.6%	−5.7%	−2.8%	0.1%	3.0%
EBIT	₩28B	₩27B	₩33B	₩27B	₩25B	₩25B	₩25B	₩25B
EBIT margin	1.6%	1.5%	1.9%	1.7%	1.7%	1.7%	1.7%	1.7%
After-tax EBIT	₩21B	₩20B	₩24B	₩19B	₩18B	₩18B	₩18B	₩18B
+ Depreciation	—	—	—	₩20B	₩19B	₩19B	₩19B	₩19B
− Capital spending	₩26B	₩31B	₩27B	₩25B	₩24B	₩23B	₩23B	₩24B
− Working capital	−₩45B	−₩16B	−₩2.4B	₩10B	₩6.3B	₩2.9B	−₩101M	−₩3B
Free cash flow	—	—	—	₩4.3B	₩7.6B	₩11B	₩14B	₩17B
Discount factor	—	—	—	0.931	0.867	0.807	0.751	0.700
Present value	—	—	—	₩4B	₩6.6B	₩8.5B	₩10B	₩12B

Terminal value ₩349B, worth ₩244B today: 86% 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:

	Low	Typical	High
Price / book (book value ₩83,693 a share)Now 0.25×	₩20,5660.25×	₩22,9270.27×	₩31,4800.38×
Price / earnings (last 12 months: ₩6,290 a share)Now 3.30×	₩22,5713.59×	₩26,0984.15×	₩35,3545.62×
P/E on run-rate earnings (Q2 2026 × 4: ₩4,907 a share)Now 4.23×	₩17,6083.59×	₩20,3594.15×	₩27,5805.62×

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%
6.4%	₩102,985	₩108,679	₩115,679	₩124,486	₩135,898
6.9%	₩98,576	₩103,313	₩109,029	₩116,056	₩124,897
7.4%	₩94,861	₩98,864	₩103,618	₩109,353	₩116,404
7.9%	₩91,690	₩95,115	₩99,131	₩103,900	₩109,653
8.4%	₩88,952	₩91,915	₩95,351	₩99,377	₩104,159

Now (TTM)

Market cap: ₩122B
Enterprise value: −₩201B
P/E: 3.3×
P/B: 0.2×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩20,600	₩17,700	₩19,450	₩25,300	₩22,600
Market cap	₩121B	₩104B	₩115B	₩149B	₩133B
P/E	3.7×	3.6×	3.7×	6.2×	6.0×
P/B	0.3×	0.2×	0.3×	0.4×	0.4×
P/S	0.1×	0.1×	0.1×	0.1×	0.1×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Kyungdong City Gas	3.3×	0.2×	0.1×	—	0.0%
Korea Electric Power	2.3×	0.4×	0.2×	5.7×	5.5%
Korea Gas	5.9×	0.3×	0.1×	8.6×	3.2%
Korea District Heating	2.3×	0.3×	0.2×	4.8×	8.6%
SGC Energy	—	0.7×	0.2×	—	4.0%
Samchully	3.2×	0.2×	0.1×	—	2.5%
Seoul City Gas	11.4×	0.2×	0.1×	—	0.0%
Similar companies (median)	3.2×	0.3×	0.2×	5.7×	3.6%

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

Also known as: Kyungdong City Gas / 경동도시가스 / 267290 / KRX:267290

Source: KRX statistical information