KOSPI · 375500 · Construction · ₩375500

DL E&CDL이앤씨

375500 · KOSPI · ₩375500 · DL이앤씨

₩58,300▲ ₩1,500 (2.64%)End-of-day · Oct 28, 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

₩156,081

vs the current price (₩58,300)

Enterprise value: ₩4.8T
Equity value: ₩6.7T
WACC: 7.9%

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 168% 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 ₩58,300, the model needs an operating margin of 0.8% every year (it uses 5.7%).
Analysts' forecasts for 2026: revenue ₩6.9T, operating profit ₩554B (8.0% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩7.1T, operating profit ₩564B (7.9% margin) (1 broker). The model starts from the last 12 months reported.
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.
42% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 4.0× against a typical 6.6× 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: ₩98,804; +69.5%
Base: ₩156,081; +167.7%
Bull: ₩252,451; +333.0%

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 (5.7%).

Revenue growth

Revenue growth, year 1-0.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 20.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 31.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 42.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-0.4% 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 (-0.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin5.7%
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 & amortisation0%
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 spending0.1%
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 capital4.4%
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.
Beta0.69
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 0.53, 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): ₩7.1T
Net debt (borrowings and leases − cash and deposits): −₩1.1T
+ Stakes and investments: ₩822B; Associates, long-term financial assets and deposits (book value)
Shares: 42,919,459; incl. 4,225,836 preferred
Share price: ₩58,300
Market cap: ₩2.4T

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	₩8T	₩8.3T	₩7.4T	₩7.1T	₩7.1T	₩7.2T	₩7.4T	₩7.6T
Growth	6.6%	4.1%	−11.0%	−0.4%	0.4%	1.3%	2.1%	3.0%
EBIT	₩331B	₩271B	₩387B	₩405B	₩406B	₩412B	₩420B	₩433B
EBIT margin	4.1%	3.3%	5.2%	5.7%	5.7%	5.7%	5.7%	5.7%
After-tax EBIT	₩240B	₩196B	₩281B	₩294B	₩295B	₩299B	₩305B	₩314B
+ Depreciation	—	—	—	₩0	₩0	₩0	₩0	₩0
− Capital spending	₩4.4B	₩2.4B	₩6B	₩7.1B	₩7.1B	₩7.2B	₩7.4B	₩7.6B
− Working capital	−₩356B	−₩37B	₩65B	−₩1.3B	₩1.3B	₩4.1B	₩6.7B	₩9.7B
Free cash flow	—	—	—	₩288B	₩286B	₩287B	₩291B	₩297B
Discount factor	—	—	—	0.927	0.859	0.796	0.738	0.684
Present value	—	—	—	₩267B	₩246B	₩229B	₩214B	₩203B

Terminal value ₩5.3T, worth ₩3.6T today: 76% 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 ₩128,127 a share)Now 0.46×	₩36,6880.29×	₩46,2830.36×	₩75,4850.59×
Price / earnings (last 12 months: ₩14,481 a share)Now 4.03×	₩48,6023.36×	₩95,0766.57×	₩166,21111.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩12,090 a share)Now 4.82×	₩40,5763.36×	₩79,3766.57×	₩138,76511.5×

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%
6.9%	₩160,928	₩169,090	₩178,911	₩190,957	₩206,081
7.4%	₩151,748	₩158,474	₩166,439	₩176,023	₩187,778
7.9%	₩143,900	₩149,517	₩156,081	₩163,854	₩173,208
8.4%	₩137,115	₩141,860	₩147,342	₩153,748	₩161,334
8.9%	₩131,190	₩135,239	₩139,870	₩145,220	₩151,472

Now (TTM)

Market cap: ₩2.3T
Enterprise value: ₩1.1T
P/E: 3.6×
P/B: 0.4×
P/S: 0.3×
EV/EBITDA: —
Dividend yield: 1.5%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩41,150	₩32,150	₩36,050	₩33,750	₩59,594
Market cap	₩1.6T	₩1.2T	₩1.4T	₩1.3T	₩2.3T
P/E	4.3×	5.4×	7.4×	3.2×	4.0×
P/B	0.3×	0.3×	0.3×	0.3×	0.5×
P/S	0.2×	0.1×	0.2×	0.2×	0.3×
EV/EBITDA	—	—	—	—	—
Dividend yield	2.2%	1.7%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
DL E&C	3.6×	0.4×	0.3×	—	1.5%
Hyundai Engineering & Construction	23.7×	1.1×	0.4×	—	0.8%
Daewoo Engineering & Construction	—	1.5×	0.8×	—	0.0%
GS Engineering & Construction	19.7×	0.5×	0.2×	—	1.7%
KEPCO Plant Service & Engineering	14.4×	1.4×	1.2×	8.1×	0.0%
Ipark Hyundai Development	8.8×	0.5×	0.4×	—	2.9%
LS Marine Solution	125.4×	2.2×	5.0×	—	0.0%
Similar companies (median)	19.7×	1.3×	0.6×	8.1×	0.4%

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

Also known as: DL E&C / DL이앤씨 / 375500 / KRX:375500

Source: KRX statistical information