Daejin Advanced Materials대진첨단소재
393970 · KOSDAQ · ₩393970 · 대진첨단소재
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
With these assumptions the model gives no positive value.
- Enterprise value
- −₩261B
- Equity value
- −₩320B
- WACC
- 5.6%
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 gives no positive value at these assumptions. What we can see:
- To match today's price of ₩2,825, the model needs an operating margin of 7.0% every year (it uses −12.9%).
- 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.
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
- —
- Base
- —
- 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 (−12.9%).
Revenue growth
- -5%
How much sales grow that year, compared with the year before.
Default: the last 1 years' revenue growth (-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 1 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.
- -1%
How much sales grow that year, compared with the year before.
Default: the last 1 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.
- 1%
How much sales grow that year, compared with the year before.
Default: the last 1 years' revenue growth (-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 1 years' revenue growth (-5% a year, annual reports), fading to 3% by year 5.
Business
- -12.9%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 2 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.
- 27.8%
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 2 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.
- 4.11%
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.
- 0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 86 weeks of weekly returns against KOSPI (official index); raw beta 0.23, 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.
- 5.61%
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)
- ₩105B
- Net debt (borrowings and leases − cash and deposits)
- ₩59B
- Shares
- 17,850,820
- Share price
- ₩2,825
- Market cap
- ₩50B
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.
| FY2024 | FY2025 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|---|
| Revenue | ₩89B | ₩85B | ₩100B | ₩97B | ₩96B | ₩97B | ₩100B |
| Growth | — | −5.0% | −5.0% | −3.0% | −1.0% | 1.0% | 3.0% |
| EBIT | ₩6B | −₩20B | −₩13B | −₩13B | −₩12B | −₩13B | −₩13B |
| EBIT margin | 6.7% | −24.1% | −12.9% | −12.9% | −12.9% | −12.9% | −12.9% |
| After-tax EBIT | ₩4.3B | −₩15B | −₩9.4B | −₩9.1B | −₩9B | −₩9.1B | −₩9.3B |
| + Depreciation | — | — | ₩3B | ₩2.9B | ₩2.9B | ₩2.9B | ₩3B |
| − Capital spending | — | — | ₩4B | ₩3.9B | ₩3.8B | ₩3.9B | ₩4B |
| − Working capital | — | ₩9.5B | −₩1.5B | −₩834M | −₩270M | ₩267M | ₩809M |
| Free cash flow | — | — | −₩8.9B | −₩9.2B | −₩9.7B | −₩10B | −₩11B |
| Discount factor | — | — | 0.947 | 0.897 | 0.849 | 0.804 | 0.761 |
| Present value | — | — | −₩8.4B | −₩8.3B | −₩8.2B | −₩8.3B | −₩8.5B |
Terminal value −₩288B, worth −₩220B today: 84% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.
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% |
|---|---|---|---|---|---|
| 4.6% | — | — | — | — | — |
| 5.1% | — | — | — | — | — |
| 5.6% | — | — | — | — | — |
| 6.1% | — | — | — | — | — |
| 6.6% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩50B
- Enterprise value
- ₩107B
- P/E
- —
- P/B
- 0.8×
- P/S
- 0.5×
- EV/EBITDA
- —
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | |
|---|---|
| Price | ₩4,305 |
| Market cap | ₩77B |
| P/E | — |
| P/B | 1.5× |
| P/S | 0.9× |
| EV/EBITDA | — |
| Dividend yield | 0.0% |
Loading data for this company — check back soon
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Daejin Advanced Materials | — | 0.8× | 0.5× | — | 0.0% |
| Hankook Tire & Technology | 5.8× | 0.5× | 0.3× | — | 4.0% |
| Kumho Tire | 3.1× | 0.6× | 0.3× | — | 0.0% |
| Pum-Tech Korea | 20.5× | 2.6× | 2.2× | — | 0.7% |
| Dongwon Systems | 9.8× | 0.7× | 0.4× | 5.7× | 2.8% |
| Nexen Tire | 3.5× | 0.2× | 0.2× | — | 3.6% |
| PI Advanced Materials | 13.6× | 1.3× | 1.8× | 5.5× | 2.1% |
| Similar companies (median) | 7.8× | 0.6× | 0.4× | 5.6× | 2.5% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Daejin Advanced Materials / 대진첨단소재 / 393970 / KRX:393970
Source: KRX statistical information