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Quality Reliability Technology

405100 · KOSDAQ · ₩405100 · 큐알티

₩16,200▼ ₩1,650 (9.24%)End-of-day · Oct 30, 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

₩5,296

vs the current price (₩16,200)

Enterprise value
₩80B
Equity value
₩65B
WACC
7.5%

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 67% 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 ₩16,200, the model needs an operating margin of 20.1% every year (it uses 8.0%).
  • Or revenue growth +25.1 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 1.4% to 17.2% 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 36.5× against a typical 51.8× 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
₩2,288
−85.9%
Base
₩5,296
−67.3%
Bull
₩10,399
−35.8%

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 (8.0%).

Revenue growth

  • 4.9%

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

    Default: the last 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

  • 4.4%

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

    Default: the last 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

  • 4%

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

    Default: the last 3 years' revenue growth (4.9% a year, annual reports), fading to 3% by year 5.

  • 3.5%

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

    Default: the last 3 years' revenue growth (4.9% 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 (4.9% a year, annual reports), fading to 3% by year 5.

Business

  • 8%

    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.

  • 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.

  • 4.4%

    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

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.68

    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.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.51%

    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)
₩75B
Net debt (borrowings and leases − cash and deposits)
₩15B
+ Stakes and investments
₩112M
Associates, long-term financial assets and deposits (book value)
Shares
12,289,301
Share price
₩16,200
Market cap
₩199B

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₩53B₩65B₩69B₩79B₩82B₩85B₩88B₩91B
Growth−10.7%22.5%5.5%4.9%4.4%4.0%3.5%3.0%
EBIT₩752M₩4.8B₩4.8B₩6.3B₩6.6B₩6.8B₩7.1B₩7.3B
EBIT margin1.4%7.3%6.9%8.0%8.0%8.0%8.0%8.0%
After-tax EBIT₩545M₩3.5B₩3.5B₩4.6B₩4.8B₩5B₩5.1B₩5.3B
+ Depreciation———₩2.4B₩2.5B₩2.6B₩2.7B₩2.7B
− Capital spending———₩3.1B₩3.3B₩3.4B₩3.5B₩3.6B
− Working capital−₩62B₩1.4B₩593M₩162M₩152M₩145M₩132M₩117M
Free cash flow———₩3.6B₩3.8B₩4B₩4.1B₩4.3B
Discount factor———0.9300.8660.8050.7490.697
Present value———₩3.4B₩3.3B₩3.2B₩3.1B₩3B

Terminal value ₩92B, worth ₩64B today: 80% 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 ₩7,205 a share)Now 2.25×₩10,9921.53×₩13,2861.84×₩18,6832.59×
Price / earnings (last 12 months: ₩444 a share)Now 36.5×₩10,75124.2×₩22,98451.8×₩39,74189.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩360 a share)Now 45.0×₩8,72124.2×₩18,64551.8×₩32,23889.6×

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%
6.5%₩5,571₩6,121₩6,793₩7,634₩8,715
7.0%₩4,984₩5,432₩5,970₩6,626₩7,448
7.5%₩4,488₩4,859₩5,296₩5,822₩6,464
8.0%₩4,063₩4,374₩4,736₩5,164₩5,677
8.5%₩3,696₩3,959₩4,262₩4,616₩5,035

Now (TTM)

Market cap
₩199B
Enterprise value
₩207B
P/E
36.5×
P/B
2.2×
P/S
2.7×
EV/EBITDA
—
Dividend yield
3.0%

Over time (at each year end)

2025202420232022
Price₩15,900₩11,700₩14,970₩12,000
Market cap₩195B₩144B₩184B₩147B
P/E67.5×50.3×70.1×22.9×
P/B2.2×1.6×1.8×1.4×
P/S2.8×2.2×3.5×2.5×
EV/EBITDA————
Dividend yield3.0%4.1%——

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Quality Reliability Technology36.5×2.2×2.7×—3.0%
S-124.3×2.2×1.3×—0.0%
Cheil Worldwide8.5×1.2×0.4×—6.7%
Doosan Tesna50.9×3.9×5.3×—0.2%
Lotte Tour Development15.2×2.1×1.1×—0.0%
Soulbrain Holdings1.3×0.4×1.2×—1.3%
Innocean Worldwide5.4×0.6×0.3×—6.8%
Similar companies (median)11.8×1.6×1.2×—0.8%

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

Also known as: Quality Reliability Technology / 큐알티 / 405100 / KRX:405100

Source: KRX statistical information