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Nepes Ark

330860 · KOSDAQ · ₩330860 · 네패스아크

₩24,900▼ ₩500 (1.97%)End-of-day · Oct 29, 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

₩12,976

vs the current price (₩24,900)

Enterprise value
₩184B
Equity value
₩158B
WACC
8.6%

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 48% 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 ₩24,900, the model needs an operating margin of 21.4% every year (it uses 6.6%).
  • Or revenue growth +26.4 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −5.5% to 23.6% 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 27.3× against a typical 21.8× 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
₩10,585
−57.5%
Base
₩12,976
−47.9%
Bull
₩16,299
−34.5%

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 (6.6%).

Revenue growth

  • -9.5%

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

    Default: the last 3 years' revenue growth (-9.5% a year, annual reports), fading to 3% by year 5.

  • -6.4%

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

    Default: the last 3 years' revenue growth (-9.5% a year, annual reports), fading to 3% by year 5.

  • -3.2%

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

    Default: the last 3 years' revenue growth (-9.5% a year, annual reports), fading to 3% by year 5.

  • -0.1%

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

    Default: the last 3 years' revenue growth (-9.5% 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 (-9.5% a year, annual reports), fading to 3% by year 5.

Business

  • 6.6%

    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.

  • 61.6%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 14%

    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).

  • 20.2%

    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.

  • 4.08%

    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.

  • 0.9

    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 0.86, 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.

  • 5.58%

    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)
₩113B
Net debt (borrowings and leases − cash and deposits)
₩26B
+ Stakes and investments
₩131M
Associates, long-term financial assets and deposits (book value)
Shares
12,184,045
Share price
₩24,900
Market cap
₩303B

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₩126B₩119B₩114B₩103B₩96B₩93B₩93B₩96B
Growth−18.0%−5.4%−4.3%−9.5%−6.4%−3.2%−0.1%3.0%
EBIT−₩6.9B−₩2.6B₩4.8B₩6.8B₩6.3B₩6.1B₩6.1B₩6.3B
EBIT margin−5.5%−2.2%4.2%6.6%6.6%6.6%6.6%6.6%
After-tax EBIT−₩5B−₩1.9B₩3.4B₩4.9B₩4.6B₩4.5B₩4.4B₩4.6B
+ Depreciation—₩79B₩65B₩63B₩59B₩57B₩57B₩59B
− Capital spending₩39B₩2.9B₩10B₩14B₩13B₩13B₩13B₩13B
− Working capital₩9.6B−₩8.7B₩42B−₩2.2B−₩1.3B−₩621M−₩19M₩563M
Free cash flow—₩82B₩17B₩56B₩52B₩49B₩49B₩50B
Discount factor———0.9210.8470.7800.7180.661
Present value———₩52B₩44B₩38B₩35B₩33B

Terminal value −₩26B, worth −₩17B today: -9% 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 ₩14,825 a share)Now 1.68×₩12,0180.81×₩19,4491.31×₩39,9292.69×
Price / earnings (last 12 months: ₩913 a share)Now 27.3×₩8,4149.21×₩19,90421.8×₩57,36862.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩2,205 a share)Now 11.3×₩20,3219.21×₩48,06921.8×₩138,55062.8×

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%
7.6%₩13,521₩13,317₩13,076₩12,786₩12,433
8.1%₩13,423₩13,245₩13,038₩12,792₩12,498
8.6%₩13,313₩13,157₩12,976₩12,765₩12,516
9.1%₩13,194₩13,056₩12,897₩12,714₩12,500
9.6%₩13,068₩12,945₩12,804₩12,644₩12,458

Now (TTM)

Market cap
₩303B
Enterprise value
₩328B
P/E
27.3×
P/B
1.7×
P/S
2.7×
EV/EBITDA
4.8×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩17,000₩10,430₩27,200₩18,000₩50,200
Market cap₩207B₩127B₩331B₩219B₩612B
P/E60.6×——8.5×24.9×
P/B1.2×0.8×1.5×0.9×3.0×
P/S1.8×1.1×2.6×1.4×5.4×
EV/EBITDA3.8×2.2×———
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Nepes Ark27.3×1.7×2.7×4.8×0.0%
S-124.0×2.1×1.3×—0.0%
Cheil Worldwide9.8×1.3×0.5×—6.5%
Doosan Tesna54.7×4.1×5.7×—0.2%
Lotte Tour Development15.4×2.2×1.1×—0.0%
Soulbrain Holdings1.3×0.4×1.3×—1.3%
Innocean Worldwide5.5×0.6×0.3×—6.7%
Similar companies (median)12.6×1.7×1.2×—0.7%

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

Also known as: Nepes Ark / 네패스아크 / 330860 / KRX:330860

Source: KRX statistical information