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SK Reit

395400 · KOSPI · ₩395400 · SK리츠

₩5,370▲ ₩40 (0.75%)End-of-day · Oct 28, 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

₩1,524

vs the current price (₩5,370)

Enterprise value
₩1.5T
Equity value
₩459B
WACC
6.2%

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 72% 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 +14.8 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 67.6% to 91.7% 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.

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
₩8
−99.8%
Base
₩1,524
−71.6%
Bull
₩4,154
−22.6%

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

Start from

Preliminary results are the company's early announcement of a quarter's sales and operating profit, before the full report. Including them swaps that quarter in for the same quarter a year earlier.

Margin path

Every year uses the cycle-average margin (70.0%).

Revenue growth

  • 25%

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

    Default: the last 3 years' revenue growth (34.4% a year, annual reports), fading to 3% by year 5.

  • 19.5%

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

    Default: the last 3 years' revenue growth (34.4% a year, annual reports), fading to 3% by year 5.

  • 14%

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

    Default: the last 3 years' revenue growth (34.4% a year, annual reports), fading to 3% by year 5.

  • 8.5%

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

    Default: the last 3 years' revenue growth (34.4% 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 (34.4% 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.

  • 4.11%

    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: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.18, 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 (FY 2025)
₩70B
Net debt (borrowings and leases − cash and deposits)
₩942B
+ Stakes and investments
₩12B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩81B
Shares
301,017,620
Share price
₩5,370
Market cap
₩1.6T

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₩53B₩52B₩70B₩88B₩105B₩120B₩130B₩134B
Growth81.5%−0.4%34.2%25.0%19.5%14.0%8.5%3.0%
EBIT₩36B₩35B₩65B₩62B₩74B₩84B₩91B₩94B
EBIT margin68.0%67.6%91.7%70.0%70.0%70.0%70.0%70.0%
After-tax EBIT₩26B₩26B₩47B₩45B₩53B₩61B₩66B₩68B
+ Depreciation———₩2.6B₩3.2B₩3.6B₩3.9B₩4B
− Capital spending———₩3.5B₩4.2B₩4.8B₩5.2B₩5.4B
− Working capital−₩50B−₩389B−₩272B−₩1.8B−₩1.7B−₩1.5B−₩1B−₩390M
Free cash flow———₩46B₩54B₩61B₩66B₩67B
Discount factor———0.9420.8870.8350.7870.741
Present value———₩43B₩48B₩51B₩52B₩50B

Terminal value ₩1.7T, worth ₩1.2T today: 83% 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 ₩6,443 a share)Now 0.83×₩5,4800.85×₩8,1281.26×₩13,3122.07×

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%
5.2%₩1,695₩2,298₩3,090₩4,179₩5,766
5.7%₩1,144₩1,609₩2,201₩2,979₩4,048
6.2%₩698₩1,067₩1,524₩2,106₩2,870
6.7%₩332₩630₩993₩1,442₩2,013
7.2%₩25₩271₩564₩920₩1,361

Now (TTM)

Market cap
₩1.6T
Enterprise value
₩2.6T
P/E
50.0×
P/B
0.8×
P/S
23.0×
EV/EBITDA
—
Dividend yield
1.3%

Over time (at each year end)

20252024202320222021
Price₩5,790₩4,425₩3,980₩5,510₩6,160
Market cap₩1.7T₩1.3T₩1.2T₩1.7T₩1.9T
P/E53.9×1,159.1×334.1×444.4×211.3×
P/B0.9×1.1×1.0×1.7×2.4×
P/S24.8×25.4×22.8×57.2×99.8×
EV/EBITDA—————
Dividend yield1.2%1.5%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
SK Reit50.0×0.8×23.0×—1.3%
Lotte Reit59.8×1.1×16.4×—2.8%
Hanwha Reit68.0×1.4×16.6×45.3×2.5%
ESR Kendall Square Reit1,180.4×0.7×11.6×73.5×4.5%
Shinhan Alpha REIT98.0×1.2×8.0×34.4×3.0%
SamsungFN Reit148.2×1.1×37.2×—1.5%
Koramco Life Infra Reit73.7×0.8×9.2×15.0×4.3%
Similar companies (median)85.9×1.1×14.0×39.9×2.9%

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

Also known as: SK Reit / SK리츠 / 395400 / KRX:395400

Source: KRX statistical information