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Fadu

440110 · KOSDAQ · ₩440110 · 파두

₩49,850▼ ₩1,150 (2.25%)End-of-day · Oct 29, 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
−₩832B
Equity value
−₩816B
WACC
9.0%

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 ₩49,850, the model needs an operating margin of 83.8% every year (it uses −20.0%).
  • Margins ranged from −260.6% to −70.8% 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.
  • 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

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 (−20.0%).

Revenue growth

  • 25%

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

    Default: the last 2 years' revenue growth (102.8% 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 2 years' revenue growth (102.8% 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 2 years' revenue growth (102.8% 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 (102.8% 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 (102.8% a year, annual reports), fading to 3% by year 5.

Business

  • -20%

    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.

  • 18.6%

    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).

  • 23.2%

    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.

  • 4.08%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 0.9

    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 0.85, 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.

  • 5.58%

    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)
₩182B
Net debt (borrowings and leases − cash and deposits)
−₩16B
+ Stakes and investments
₩635M
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩746M
Shares
50,111,027
Share price
₩49,850
Market cap
₩2.5T

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₩22B₩44B₩92B₩228B₩272B₩310B₩337B₩347B
Growth—93.6%112.4%25.0%19.5%14.0%8.5%3.0%
EBIT−₩59B−₩95B−₩65B−₩46B−₩54B−₩62B−₩67B−₩69B
EBIT margin−260.6%−218.5%−70.8%−20.0%−20.0%−20.0%−20.0%−20.0%
After-tax EBIT−₩42B−₩69B−₩47B−₩33B−₩39B−₩45B−₩49B−₩50B
+ Depreciation———₩42B₩51B₩58B₩63B₩65B
− Capital spending₩11B₩7.2B₩4.1B₩53B₩63B₩72B₩78B₩80B
− Working capital—−₩5.5B−₩56B₩18B₩18B₩15B₩11B₩4B
Free cash flow———−₩62B−₩70B−₩75B−₩75B−₩70B
Discount factor———0.9170.8410.7720.7080.649
Present value———−₩57B−₩59B−₩57B−₩53B−₩46B

Terminal value −₩863B, worth −₩560B today: 67% 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 ₩1,273 a share)Now 39.2×₩6,1244.81×₩8,7906.91×₩121,08495.1×

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%
8.0%—————
8.5%—————
9.0%—————
9.5%—————
10.0%—————

Now (TTM)

Market cap
₩2.5T
Enterprise value
₩2.5T
P/E
—
P/B
39.2×
P/S
13.7×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

202520242023
Price₩21,250₩15,000₩23,350
Market cap₩1.1T₩752B₩1.2T
P/E———
P/B55.2×7.8×6.3×
P/S11.5×17.3×52.1×
EV/EBITDA———
Dividend yield0.0%——

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Fadu—39.2×13.7×—0.0%
SK hynix6.9×4.2×5.9×—0.2%
DB HiTek12.5×1.8×2.8×—0.8%
Hana Micron14.4×4.5×1.2×—0.2%
Jeju Semiconductor10.5×5.4×3.6×—0.0%
SFA Semicon—3.0×3.2×—0.0%
Hana Materials15.9×1.7×3.1×—0.6%
Similar companies (median)12.5×3.6×3.1×—0.2%

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

Also known as: Fadu / 파두 / 440110 / KRX:440110

Source: KRX statistical information