KOSDAQ · 451760 · IT services · ₩451760

Contec컨텍

451760 · KOSDAQ · ₩451760 · 컨텍

₩10,350▼ ₩210 (1.99%)End-of-day · Oct 27, 2026 · End-of-day prices.

Trade

Sell Buy

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: −₩444B
Equity value: −₩452B
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 gives no positive value at these assumptions. What we can see:

To match today's price of ₩10,350, the model needs an operating margin of 15.3% every year (it uses −20.0%).
Margins ranged from −63.1% to −17.7% 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.
100% 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

Cycle options

Margin path

Every year uses the cycle-average margin (−20.0%).

Revenue growth

Revenue growth, year 125%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (134.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 219.5%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (134.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 314%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (134.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 48.5%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (134.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (134.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation31.3%
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).
Capital spending39.2%
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).
Working capital-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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
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.
Beta0.61
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 0.41, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)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 (TTM to H1 2026): ₩78B
Net debt (borrowings and leases − cash and deposits): −₩82B
+ Stakes and investments: ₩5.3B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩95B
Shares: 16,507,774
Share price: ₩10,350
Market cap: ₩171B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩16B	₩69B	₩87B	₩97B	₩116B	₩132B	₩144B	₩148B
Growth	—	336.2%	26.0%	25.0%	19.5%	14.0%	8.5%	3.0%
EBIT	−₩10B	−₩12B	−₩16B	−₩19B	−₩23B	−₩26B	−₩29B	−₩30B
EBIT margin	−63.1%	−17.7%	−18.6%	−20.0%	−20.0%	−20.0%	−20.0%	−20.0%
After-tax EBIT	−₩7.2B	−₩8.8B	−₩12B	−₩14B	−₩17B	−₩19B	−₩21B	−₩21B
+ Depreciation	—	—	—	₩30B	₩36B	₩41B	₩45B	₩46B
− Capital spending	₩14B	₩9.4B	₩14B	₩38B	₩46B	₩52B	₩56B	₩58B
− Working capital	—	−₩7.5B	−₩4.9B	−₩1.9B	−₩1.9B	−₩1.6B	−₩1.1B	−₩431M
Free cash flow	—	—	—	−₩20B	−₩24B	−₩28B	−₩31B	−₩33B
Discount factor	—	—	—	0.931	0.866	0.806	0.750	0.698
Present value	—	—	—	−₩18B	−₩21B	−₩23B	−₩23B	−₩23B

Terminal value −₩481B, worth −₩336B today: 76% 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:

	Low	Typical	High
Price / book (book value ₩6,984 a share)Now 1.48×	₩9,3981.35×	₩12,0351.72×	₩23,6653.39×

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%
6.5%	—	—	—	—	—
7.0%	—	—	—	—	—
7.5%	—	—	—	—	—
8.0%	—	—	—	—	—
8.5%	—	—	—	—	—

Now (TTM)

Market cap: ₩171B
Enterprise value: ₩86B
P/E: 19.2×
P/B: 1.5×
P/S: 2.2×
EV/EBITDA: —
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023
Price	₩11,220	₩9,920	₩15,360
Market cap	₩185B	₩164B	₩254B
P/E	—	—	—
P/B	2.2×	1.8×	2.3×
P/S	2.1×	2.4×	16.0×
EV/EBITDA	—	—	—
Dividend yield	0.0%	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Contec	19.2×	1.5×	2.2×	—	0.0%
Samsung SDS	25.6×	1.6×	1.2×	—	1.5%
LG CNS	15.1×	2.4×	1.2×	—	2.5%
DB	7.1×	0.9×	0.6×	16.2×	0.0%
Itcenglobal	6.7×	2.9×	0.0×	—	0.0%
Lotte Innovate	15.5×	0.6×	0.2×	—	4.0%
Shinsegae Information & Communication	6.3×	0.4×	0.3×	0.8×	0.0%
Similar companies (median)	11.1×	1.3×	0.5×	8.5×	0.7%

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

Also known as: Contec / 컨텍 / 451760 / KRX:451760

Source: KRX statistical information