Dongkuk Coated Metal동국씨엠
460850 · KOSPI · ₩460850 · 동국씨엠
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
- ₩391B
- Equity value
- −₩600B
- WACC
- 4.5%
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 ₩4,850, the model needs an operating margin of 1.6% every year (it uses 1.1%).
- 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
- ₩182,964
- +3,672.4%
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Margin path
Every year uses the cycle-average margin (1.1%).
Revenue growth
- 25%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (47.9% 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 (47.9% 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 (47.9% 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 (47.9% 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 (47.9% a year, annual reports), fading to 3% by year 5.
Business
- 1.1%
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.
- 1.3%
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).
- 1.7%
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).
- 15%
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 0.26, 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)
- ₩2.8T
- Net debt (borrowings and leases − cash and deposits)
- ₩930B
- + Stakes and investments
- ₩34M
- Associates, long-term financial assets and deposits (book value)
- − Minority interests
- ₩61B
- Shares
- 29,898,656
- Share price
- ₩4,850
- Market cap
- ₩145B
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 | ₩1.3T | ₩2.2T | ₩2.8T | ₩3.5T | ₩4.2T | ₩4.8T | ₩5.2T | ₩5.3T |
| Growth | — | 70.9% | 28.0% | 25.0% | 19.5% | 14.0% | 8.5% | 3.0% |
| EBIT | ₩27B | ₩77B | −₩39B | ₩38B | ₩46B | ₩52B | ₩57B | ₩58B |
| EBIT margin | 2.1% | 3.6% | −1.4% | 1.1% | 1.1% | 1.1% | 1.1% | 1.1% |
| After-tax EBIT | ₩19B | ₩56B | −₩28B | ₩28B | ₩33B | ₩38B | ₩41B | ₩42B |
| + Depreciation | — | — | — | ₩45B | ₩54B | ₩62B | ₩67B | ₩69B |
| − Capital spending | ₩22B | ₩28B | ₩53B | ₩59B | ₩71B | ₩81B | ₩88B | ₩90B |
| − Working capital | — | −₩73B | ₩117B | ₩105B | ₩102B | ₩88B | ₩61B | ₩23B |
| Free cash flow | — | — | — | −₩91B | −₩86B | −₩69B | −₩40B | −₩2.1B |
| Discount factor | — | — | — | 0.957 | 0.916 | 0.877 | 0.840 | 0.804 |
| Present value | — | — | — | −₩87B | −₩78B | −₩60B | −₩34B | −₩1.7B |
Terminal value ₩811B, worth ₩652B today: 167% 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 ₩33,010 a share)Now 0.15× | ₩5,3000.16× | ₩6,2130.19× | ₩7,1050.22× |
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% |
|---|---|---|---|---|---|
| 3.5% | — | — | — | ₩4,900 | — |
| 4.0% | — | — | — | — | — |
| 4.5% | — | — | — | — | — |
| 5.0% | — | — | — | — | — |
| 5.5% | — | — | — | — | — |
Now (TTM)
- Market cap
- ₩145B
- Enterprise value
- ₩1.1T
- P/E
- —
- P/B
- 0.1×
- P/S
- 0.1×
- EV/EBITDA
- —
- Dividend yield
- 6.2%
Over time (at each year end)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Price | ₩5,320 | ₩5,950 | ₩7,100 |
| Market cap | ₩159B | ₩178B | ₩212B |
| P/E | — | 2.8× | 21.0× |
| P/B | 0.2× | 0.2× | 0.2× |
| P/S | 0.1× | 0.1× | 0.2× |
| EV/EBITDA | — | — | — |
| Dividend yield | 5.6% | 8.4% | — |
Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| Dongkuk Coated Metal | — | 0.1× | 0.1× | — | 6.2% |
| POSCO Holdings | 15.8× | 0.4× | 0.3× | 7.6× | 3.7% |
| Korea Zinc | 17.9× | 1.6× | 0.8× | — | 2.4% |
| Hyundai Steel | — | 0.2× | 0.2× | — | 1.9% |
| Poongsan | 7.9× | 0.7× | 0.3× | 5.9× | 3.0% |
| SeAH Besteel Holdings | 12.8× | 0.6× | 0.3× | 9.7× | 3.8% |
| Sama Aluminium | — | 3.9× | 2.9× | — | 0.0% |
| Similar companies (median) | 14.3× | 0.6× | 0.3× | 7.6× | 2.7% |
Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.
Also known as: Dongkuk Coated Metal / 동국씨엠 / 460850 / KRX:460850
Source: KRX statistical information