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LS Materials

417200 · KOSDAQ · ₩417200 · LS머트리얼즈

₩12,390▲ ₩450 (3.77%)End-of-day · Oct 27, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩27B
Equity value
−₩54B
WACC
8.9%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩12,390, the model needs an operating margin of 46.5% every year (it uses 3.6%).
  • Margins ranged from −0.1% to 9.9% over the last 3 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.
  • 83% 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.
  • 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 (3.6%).

Revenue growth

  • 5.9%

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

    Default: the last 2 years' revenue growth (5.9% a year, annual reports), fading to 3% by year 5.

  • 5.2%

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

    Default: the last 2 years' revenue growth (5.9% a year, annual reports), fading to 3% by year 5.

  • 4.5%

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

    Default: the last 2 years' revenue growth (5.9% a year, annual reports), fading to 3% by year 5.

  • 3.7%

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

    Default: the last 2 years' revenue growth (5.9% 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 2 years' revenue growth (5.9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.6%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 3 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.

  • 20.6%

    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).

  • 25.8%

    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).

  • 23.8%

    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 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.

  • 4.03%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-27.

  • 0.89

    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 0.83, 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.

  • 5.53%

    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)
₩173B
Net debt (borrowings and leases − cash and deposits)
₩9.1B
+ Stakes and investments
₩805M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩19B
Shares
67,652,659
Share price
₩12,390
Market cap
₩838B

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₩137B₩142B₩154B₩184B₩193B₩202B₩209B₩216B
Growth—3.8%8.1%5.9%5.2%4.5%3.7%3.0%
EBIT₩14B₩6.2B−₩142M₩6.6B₩7B₩7.3B₩7.5B₩7.8B
EBIT margin9.9%4.4%−0.1%3.6%3.6%3.6%3.6%3.6%
After-tax EBIT₩9.8B₩4.5B−₩103M₩4.8B₩5B₩5.3B₩5.5B₩5.6B
+ Depreciation———₩38B₩40B₩42B₩43B₩44B
− Capital spending₩37B₩50B₩24B₩47B₩50B₩52B₩54B₩56B
− Working capital—₩16B₩5.7B₩2.4B₩2.3B₩2.1B₩1.8B₩1.5B
Free cash flow———−₩7.2B−₩7.3B−₩7.3B−₩7.2B−₩7.1B
Discount factor———0.9180.8440.7750.7120.654
Present value———−₩6.6B−₩6.1B−₩5.7B−₩5.1B−₩4.6B

Terminal value ₩2.4B, worth ₩1.5B today: -6% 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 ₩2,724 a share)Now 4.55×₩10,3913.82×₩13,3294.89×₩24,1308.86×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2024, 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%
7.9%—————
8.4%—————
8.9%—————
9.4%—————
9.9%—————

Now (TTM)

Market cap
₩838B
Enterprise value
₩846B
P/E
699.8×
P/B
4.5×
P/S
4.8×
EV/EBITDA
—
Dividend yield
0.2%

Over time (at each year end)

202520242023
Price₩12,180₩11,780₩44,350
Market cap₩824B₩797B₩3T
P/E1,892.6×140.5×246.8×
P/B4.5×4.3×16.6×
P/S5.4×5.6×21.9×
EV/EBITDA———
Dividend yield0.2%——

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
LS Materials699.8×4.5×4.8×—0.2%
Samsung Electro-Mechanics89.0×8.8×7.2×—0.2%
Doosan36.8×5.2×0.7×—0.4%
Hanwha Systems67.9×2.7×2.9×—0.8%
LG Innotek13.4×1.4×0.4×—0.5%
Isupetasys32.5×7.6×5.0×—0.0%
Daeduck Electronics41.5×6.5×4.7×—0.4%
Similar companies (median)39.2×5.8×3.8×—0.4%

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

Also known as: LS Materials / LS머트리얼즈 / 417200 / KRX:417200

Source: KRX statistical information