Ask Warren

kt millie seojae

418470 · KOSDAQ · ₩418470 · KT밀리의서재

₩8,790▲ ₩50 (0.57%)End-of-day · Oct 27, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩37,102

vs the current price (₩8,790)

Enterprise value
₩300B
Equity value
₩318B
WACC
7.3%

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 322% 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 ₩8,790, the model needs an operating margin of 4.9% every year (it uses 15.9%).
  • 37% 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.
  • Today's P/E is 4.9× against a typical 9.4× 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
₩24,370
+177.2%
Base
₩37,102
+322.1%
Bull
₩58,375
+564.1%

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 (15.9%).

Revenue growth

  • 24.9%

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

    Default: the last 2 years' revenue growth (24.9% a year, annual reports), fading to 3% by year 5.

  • 19.4%

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

    Default: the last 2 years' revenue growth (24.9% a year, annual reports), fading to 3% by year 5.

  • 13.9%

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

    Default: the last 2 years' revenue growth (24.9% 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 2 years' revenue growth (24.9% 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 (24.9% a year, annual reports), fading to 3% by year 5.

Business

  • 15.9%

    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.

  • 1%

    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).

  • 1.2%

    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).

  • 40%

    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.

  • 0.6

    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 0.17, 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)
₩95B
Net debt (borrowings and leases − cash and deposits)
−₩18B
Shares
8,565,789
Share price
₩8,790
Market cap
₩75B

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₩57B₩73B₩88B₩119B₩142B₩162B₩176B₩181B
Growth—28.3%21.5%24.9%19.4%13.9%8.5%3.0%
EBIT₩10B₩11B₩14B₩19B₩23B₩26B₩28B₩29B
EBIT margin18.4%15.2%16.3%15.9%15.9%15.9%15.9%15.9%
After-tax EBIT₩7.5B₩8B₩10B₩14B₩16B₩19B₩20B₩21B
+ Depreciation———₩1.2B₩1.4B₩1.6B₩1.8B₩1.8B
− Capital spending₩670M₩780M₩1.3B₩1.4B₩1.7B₩1.9B₩2.1B₩2.2B
− Working capital—−₩8.8B₩18B₩9.5B₩9.2B₩7.9B₩5.5B₩2.1B
Free cash flow———₩4B₩6.9B₩10B₩14B₩18B
Discount factor———0.9320.8680.8090.7530.702
Present value———₩3.7B₩6B₩8.4B₩11B₩13B

Terminal value ₩368B, worth ₩258B today: 86% 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 ₩10,374 a share)Now 0.85×₩10,0890.97×₩17,8301.72×₩30,5002.94×
Price / earnings (last 12 months: ₩1,779 a share)Now 4.94×₩9,5435.36×₩16,6429.35×₩19,91011.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,269 a share)Now 6.93×₩6,8065.36×₩11,8699.35×₩14,20011.2×

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%
6.3%₩39,579₩42,461₩46,001₩50,457₩56,241
6.8%₩36,025₩38,322₩41,087₩44,484₩48,759
7.3%₩33,040₩34,899₩37,102₩39,754₩43,012
7.8%₩30,497₩32,023₩33,805₩35,917₩38,460
8.3%₩28,305₩29,572₩31,035₩32,743₩34,767

Now (TTM)

Market cap
₩75B
Enterprise value
₩57B
P/E
4.9×
P/B
0.8×
P/S
0.8×
EV/EBITDA
—
Dividend yield
6.3%

Over time (at each year end)

202520242023
Price₩13,740₩14,400₩17,250
Market cap₩118B₩123B₩148B
P/E7.5×10.7×10.2×
P/B1.4×1.8×2.6×
P/S1.3×1.7×2.6×
EV/EBITDA———
Dividend yield4.0%——

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
kt millie seojae4.9×0.8×0.8×—6.3%
CJ ENM—0.3×0.2×—0.0%
Seoul Broadcasting System107.3×0.2×0.2×—3.0%
KT Skylife78.4×0.3×0.2×—9.0%
Mega Study5.3×0.5×1.3×—10.1%
LG HelloVision—0.2×0.1×3.1×0.0%
The Korea Economic Broadcasting19.1×0.7×1.1×—3.1%
Similar companies (median)48.8×0.3×0.2×3.1×3.1%

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

Also known as: kt millie seojae / KT밀리의서재 / 418470 / KRX:418470

Source: KRX statistical information