KOSPI · 306200 · Steel & Materials · ₩306200

SeAH Steel세아제강

306200 · KOSPI · ₩306200 · 세아제강

₩119,400▼ ₩400 (0.33%)End-of-day · Oct 29, 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

₩652,301

vs the current price (₩119,400)

Enterprise value: ₩2.1T
Equity value: ₩1.9T
WACC: 5.9%

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 446% 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 ₩119,400, the model needs an operating margin of 3.1% every year (it uses 8.9%).
Or revenue growth −29.1 points a year higher than assumed in each of the 5 years.
Margins ranged from 3.3% to 12.5% 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 6.0× against a typical 2.8× 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: ₩306,353; +156.6%
Base: ₩652,301; +446.3%
Bull: ₩1,330,313; +1,014.2%

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 (8.9%).

Revenue growth

Revenue growth, year 1-6.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-3.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.6%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.2% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-6.2% 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 (-6.2% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin8.9%
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.
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 & amortisation2.9%
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 spending3.6%
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 capital12.9%
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

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 rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
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 0.2, 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)5.58%
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): ₩1.6T
Net debt (borrowings and leases − cash and deposits): ₩266B
+ Stakes and investments: ₩2.5B; Associates, long-term financial assets and deposits (book value)
Shares: 2,836,300
Share price: ₩119,400
Market cap: ₩339B

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	₩1.9T	₩1.8T	₩1.5T	₩1.5T	₩1.5T	₩1.5T	₩1.5T	₩1.5T
Growth	3.3%	−2.8%	−17.9%	−6.2%	−3.9%	−1.6%	0.7%	3.0%
EBIT	₩232B	₩203B	₩50B	₩136B	₩131B	₩129B	₩130B	₩134B
EBIT margin	12.5%	11.2%	3.3%	8.9%	8.9%	8.9%	8.9%	8.9%
After-tax EBIT	₩168B	₩147B	₩36B	₩99B	₩95B	₩94B	₩94B	₩97B
+ Depreciation	—	—	—	₩44B	₩43B	₩42B	₩42B	₩44B
− Capital spending	₩50B	₩91B	₩46B	₩55B	₩53B	₩52B	₩53B	₩54B
− Working capital	₩103B	−₩341B	₩208B	−₩13B	−₩7.7B	−₩3B	₩1.3B	₩5.7B
Free cash flow	—	—	—	₩101B	₩92B	₩86B	₩83B	₩81B
Discount factor	—	—	—	0.944	0.891	0.842	0.795	0.750
Present value	—	—	—	₩96B	₩82B	₩73B	₩66B	₩61B

Terminal value ₩2.3T, worth ₩1.7T today: 82% 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 ₩410,397 a share)Now 0.29×	₩128,6360.31×	₩163,6490.40×	₩216,6980.53×
Price / earnings (last 12 months: ₩19,745 a share)Now 6.05×	₩44,8032.27×	₩54,8642.78×	₩157,4297.97×
P/E on run-rate earnings (Q2 2026 × 4: ₩45,859 a share)Now 2.60×	₩104,0602.27×	₩127,4262.78×	₩365,6437.97×

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%
4.9%	₩693,181	₩783,968	₩905,811	₩1,078,007	₩1,340,005
5.4%	₩604,300	₩672,455	₩760,494	₩878,650	₩1,045,632
5.9%	₩533,518	₩586,212	₩652,301	₩737,671	₩852,245
6.4%	₩475,820	₩517,524	₩568,619	₩632,702	₩715,480
6.9%	₩427,887	₩461,528	₩501,965	₩551,506	₩613,641

Now (TTM)

Market cap: ₩339B
Enterprise value: ₩604B
P/E: 6.0×
P/B: 0.3×
P/S: 0.2×
EV/EBITDA: —
Dividend yield: 4.6%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩117,300	₩120,700	₩137,600	₩129,500	₩95,600
Market cap	₩333B	₩342B	₩390B	₩367B	₩271B
P/E	11.1×	2.5×	2.1×	2.3×	3.0×
P/B	0.3×	0.3×	0.4×	0.4×	0.4×
P/S	0.2×	0.2×	0.2×	0.2×	0.2×
EV/EBITDA	—	—	—	—	—
Dividend yield	4.7%	5.8%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
SeAH Steel	6.0×	0.3×	0.2×	—	4.6%
POSCO Holdings	16.2×	0.4×	0.3×	7.7×	3.6%
Korea Zinc	18.6×	1.6×	0.9×	—	2.3%
Hyundai Steel	—	0.2×	0.2×	—	1.9%
Poongsan	8.1×	0.7×	0.3×	5.9×	2.9%
SeAH Besteel Holdings	12.2×	0.5×	0.3×	9.5×	4.0%
Sama Aluminium	—	4.1×	3.0×	—	0.0%
Similar companies (median)	14.2×	0.6×	0.3×	7.7×	2.6%

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

Also known as: SeAH Steel / 세아제강 / 306200 / KRX:306200

Source: KRX statistical information