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Dae Myoung Energy

389260 · KOSDAQ · ₩389260 · 대명에너지

₩10,280▼ ₩550 (5.08%)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

₩32,771

vs the current price (₩10,280)

Enterprise value
₩549B
Equity value
₩587B
WACC
7.0%

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 219% 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 ₩10,280, the model needs an operating margin of 6.6% every year (it uses 20.6%).
  • Margins ranged from 12.8% to 29.1% 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.
  • Today's P/E is 6.1× against a typical 26.2× 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
₩22,370
+117.6%
Base
₩32,771
+218.8%
Bull
₩50,230
+388.6%

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 (20.6%).

Revenue growth

  • 14.2%

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

    Default: the last 3 years' revenue growth (14.2% a year, annual reports), fading to 3% by year 5.

  • 11.4%

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

    Default: the last 3 years' revenue growth (14.2% a year, annual reports), fading to 3% by year 5.

  • 8.6%

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

    Default: the last 3 years' revenue growth (14.2% a year, annual reports), fading to 3% by year 5.

  • 5.8%

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

    Default: the last 3 years' revenue growth (14.2% 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 (14.2% a year, annual reports), fading to 3% by year 5.

Business

  • 20.6%

    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.

  • 1.8%

    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).

  • 2.2%

    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).

  • 28.3%

    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 0.11, 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)
₩146B
Net debt (borrowings and leases − cash and deposits)
₩22B
+ Stakes and investments
₩60B
Associates, long-term financial assets and deposits (book value)
Shares
17,916,325
Share price
₩10,280
Market cap
₩184B

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₩62B₩68B₩131B₩167B₩186B₩202B₩213B₩220B
Growth−29.9%9.9%93.3%14.2%11.4%8.6%5.8%3.0%
EBIT₩17B₩9.7B₩17B₩34B₩38B₩42B₩44B₩45B
EBIT margin27.2%14.3%12.8%20.6%20.6%20.6%20.6%20.6%
After-tax EBIT₩12B₩7B₩12B₩25B₩28B₩30B₩32B₩33B
+ Depreciation———₩3B₩3.3B₩3.6B₩3.8B₩4B
− Capital spending₩360M—₩5B₩3.7B₩4.1B₩4.4B₩4.7B₩4.8B
− Working capital₩20B₩6.1B−₩12B₩5.9B₩5.4B₩4.5B₩3.3B₩1.8B
Free cash flow———₩18B₩22B₩25B₩28B₩30B
Discount factor———0.9340.8730.8160.7620.712
Present value———₩17B₩19B₩20B₩21B₩21B

Terminal value ₩633B, worth ₩451B 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 ₩10,381 a share)Now 0.99×₩16,3921.58×₩25,0022.41×₩42,6724.11×
Price / earnings (last 12 months: ₩1,691 a share)Now 6.08×₩20,00411.8×₩44,36226.2×₩80,18047.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,690 a share)Now 2.79×₩43,65911.8×₩96,82126.2×₩174,99547.4×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2022, 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%
6.0%₩34,406₩37,203₩40,692₩45,167₩51,118
6.5%₩31,351₩33,577₩36,293₩39,680₩44,024
7.0%₩28,806₩30,610₩32,771₩35,407₩38,695
7.5%₩26,652₩28,137₩29,889₩31,987₩34,545
8.0%₩24,808₩26,046₩27,487₩29,187₩31,224

Now (TTM)

Market cap
₩184B
Enterprise value
₩205B
P/E
6.1×
P/B
1.0×
P/S
1.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

2025202420232022
Price₩19,000₩11,300₩17,440₩17,300
Market cap₩340B₩202B₩312B₩310B
P/E24.1×26.0×50.9×11.9×
P/B2.1×1.6×2.6×2.9×
P/S2.6×3.0×5.1×3.5×
EV/EBITDA————
Dividend yield0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dae Myoung Energy6.1×1.0×1.3×—0.0%
Hyundai Engineering & Construction22.7×1.1×0.4×—0.9%
Daewoo Engineering & Construction—1.3×0.6×—0.0%
GS Engineering & Construction19.3×0.5×0.2×—1.7%
DL E&C3.6×0.4×0.3×—1.5%
KEPCO Plant Service & Engineering14.4×1.4×1.2×8.1×0.0%
Ipark Hyundai Development8.9×0.5×0.4×—2.8%
Similar companies (median)14.4×0.8×0.4×8.1×1.2%

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

Also known as: Dae Myoung Energy / 대명에너지 / 389260 / KRX:389260

Source: KRX statistical information