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Igis Residence Reit

350520 · KOSPI · ₩350520 · 이지스레지던스리츠

₩2,990▼ ₩10 (0.33%)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

₩1,117

vs the current price (₩2,990)

Enterprise value
₩119B
Equity value
₩41B
WACC
6.0%

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:

  • No operating margin up to 90% gets the model to today's price at these growth assumptions.
  • Or revenue growth +9.8 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 58.9% to 98.5% 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 13.2× against a typical 12.1× 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
₩57
−98.1%
Base
₩1,117
−62.6%
Bull
₩3,015
+0.8%

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 (70.0%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-37.1% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-37.1% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-37.1% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-37.1% 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 (-37.1% a year, annual reports), fading to 3% by year 5.

Business

  • 70%

    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.

  • 3%

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

    Default: not in the statements, so a typical level.

  • 4%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: not in the statements, so a typical level.

  • -10%

    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.

  • 0.6

    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 0.01, 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)
₩12B
Net debt (borrowings and leases − cash and deposits)
₩78B
Shares
36,866,202
Share price
₩2,990
Market cap
₩110B

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₩21B₩21B₩17B₩11B₩10B₩9.9B₩9.9B₩10B
Growth−69.0%0.4%−20.0%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩12B₩13B₩14B₩7.7B₩7.2B₩6.9B₩6.9B₩7.1B
EBIT margin58.9%62.9%86.7%70.0%70.0%70.0%70.0%70.0%
After-tax EBIT₩8.8B₩9.4B₩10B₩5.6B₩5.2B₩5B₩5B₩5.2B
+ Depreciation———₩329M₩307M₩296M₩296M₩305M
− Capital spending———₩439M₩410M₩395M₩394M₩406M
− Working capital₩2.7B−₩72B₩67B₩122M₩74M₩36M₩2M−₩30M
Free cash flow———₩5.3B₩5B₩4.9B₩4.9B₩5.1B
Discount factor———0.9430.8900.8400.7920.747
Present value———₩5B₩4.5B₩4.1B₩3.9B₩3.8B

Terminal value ₩131B, worth ₩98B 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:

LowTypicalHigh
Price / book (book value ₩8,574 a share)Now 0.35×₩3,6060.42×₩4,7730.56×₩15,4151.80×
Price / earnings (last 12 months: ₩227 a share)Now 13.2×₩4011.77×₩2,74612.1×₩4,82721.2×

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%
5.0%₩1,229₩1,643₩2,194₩2,966₩4,125
5.5%₩857₩1,173₩1,579₩2,120₩2,878
6.0%₩559₩807₩1,117₩1,516₩2,048
6.5%₩316₩515₩758₩1,063₩1,454
7.0%₩113₩276₩471₩711₩1,010

Now (TTM)

Market cap
₩110B
Enterprise value
₩188B
P/E
13.2×
P/B
0.3×
P/S
9.0×
EV/EBITDA
—
Dividend yield
5.0%

Over time (at each year end)

20252024202320222021
Price₩3,800₩3,830₩3,770₩3,905₩5,220
Market cap₩140B₩141B₩139B₩144B₩192B
P/E11.7×15.2×18.2×2.3×23.7×
P/B0.4×0.4×0.6×0.6×1.7×
P/S8.5×6.8×6.8×2.2×21.0×
EV/EBITDA—————
Dividend yield3.9%3.9%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Igis Residence Reit13.2×0.3×9.0×—5.0%
SK Reit49.3×0.8×22.7×—1.3%
Lotte Reit59.9×1.1×16.5×—2.8%
Hanwha Reit68.1×1.4×16.7×45.4×2.5%
ESR Kendall Square Reit1,176.5×0.7×11.6×73.4×4.6%
Shinhan Alpha REIT98.1×1.2×8.0×34.4×3.0%
SamsungFN Reit148.7×1.1×37.3×—1.5%
Similar companies (median)83.1×1.1×16.6×45.4×2.6%

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

Also known as: Igis Residence Reit / 이지스레지던스리츠 / 350520 / KRX:350520

Source: KRX statistical information