Ask Warren

GI Innovation

358570 · KOSDAQ · ₩358570 · 지아이이노베이션

₩7,140▲ ₩110 (1.56%)End-of-day · Oct 28, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩68

vs the current price (₩7,140)

Enterprise value
−₩33B
Equity value
₩4.4B
WACC
8.1%

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 99% 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.
  • Margins ranged from −198,751.9% to −696.4% over the last 4 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.

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
₩165
−97.7%
Base
₩68
−99.1%
Bull
—

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 (−20.0%).

Revenue growth

  • 18.6%

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

    Default: the last 3 years' revenue growth (18.6% a year, annual reports), fading to 3% by year 5.

  • 14.7%

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

    Default: the last 3 years' revenue growth (18.6% a year, annual reports), fading to 3% by year 5.

  • 10.8%

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

    Default: the last 3 years' revenue growth (18.6% a year, annual reports), fading to 3% by year 5.

  • 6.9%

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

    Default: the last 3 years' revenue growth (18.6% 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 (18.6% a year, annual reports), fading to 3% by year 5.

Business

  • -20%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 4 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.

  • 64.5%

    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).

  • 80.6%

    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).

  • 40%

    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.

  • 0.73

    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 0.6, 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)
₩5.5B
Net debt (borrowings and leases − cash and deposits)
−₩38B
Shares
64,516,006
Share price
₩7,140
Market cap
₩461B

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₩5.3B₩24M₩5.8B₩6.5B₩7.5B₩8.3B₩8.9B₩9.1B
Growth52.0%−99.5%23,943.4%18.6%14.7%10.8%6.9%3.0%
EBIT−₩53B−₩48B−₩41B−₩1.3B−₩1.5B−₩1.7B−₩1.8B−₩1.8B
EBIT margin−1,002.2%−198,751.9%−696.4%−20.0%−20.0%−20.0%−20.0%−20.0%
After-tax EBIT−₩39B−₩35B−₩29B−₩946M−₩1.1B−₩1.2B−₩1.3B−₩1.3B
+ Depreciation———₩4.2B₩4.8B₩5.3B₩5.7B₩5.9B
− Capital spending₩579M₩25M₩7.5B₩5.3B₩6B₩6.7B₩7.1B₩7.4B
− Working capital−₩34B−₩20B−₩1.9B₩409M₩384M₩323M₩229M₩106M
Free cash flow———−₩2.4B−₩2.7B−₩2.9B−₩2.9B−₩2.9B
Discount factor———0.9250.8560.7920.7320.678
Present value———−₩2.2B−₩2.3B−₩2.3B−₩2.2B−₩2B

Terminal value −₩33B, worth −₩23B today: 67% 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 ₩1,498 a share)Now 4.77×₩7,7185.15×₩13,0498.71×₩20,19213.5×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2023, 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%
7.1%₩57₩19———
7.6%₩94₩62₩25——
8.1%₩125₩99₩68₩31—
8.6%₩153₩130₩104₩73₩37
9.1%₩177₩157₩135₩109₩78

Now (TTM)

Market cap
₩461B
Enterprise value
₩423B
P/E
—
P/B
4.8×
P/S
83.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

202520242023
Price₩17,640₩7,353₩10,038
Market cap₩1.1T₩474B₩648B
P/E———
P/B9.8×16.3×9.0×
P/S194.9×19,536.1×121.8×
EV/EBITDA———
Dividend yield0.0%——

Loading data for this company — check back soon

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
GI Innovation—4.8×83.8×—0.0%
Samsung Biologics32.0×7.6×14.0×—0.0%
Celltrion27.9×2.5×9.0×—0.0%
Alteogen80.5×29.0×61.2×—0.1%
SK biopharmaceuticals14.7×5.8×6.8×—0.0%
Yuhan24.0×2.4×2.5×31.3×0.8%
HLB—15.7×55.6×—0.0%
Similar companies (median)27.9×6.7×11.5×31.3×0.0%

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

Also known as: GI Innovation / 지아이이노베이션 / 358570 / KRX:358570

Source: KRX statistical information