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Korea Shipbuilding & Offshore Engineering Co Ltd (009540) Fair Value & Analysis

Industrials · KR · Market cap 25.0T KRW (≈ $17.5B) · ISIN KR7009540006

What is Korea Shipbuilding & Offshore Engineering Co Ltd really worth?

KS Korea Shipbuilding & Offshore Engineering Co Ltd 009540 · KO
Price348,500 KRW
Fair Value643,950 KRW
Upside+84.8%
Quality70/100

A solid business, trading 46% below our fair value of 643,950 KRW.

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Strengths

Healthy Growth (revenue 5y +15.0 %/yr)
Low debt · generates free cash flow
Ranks above peers (11/11)

Risks

!Thin margins · 8.0% net margin
!Moderate moat 61/100
!Evidence only medium, so the estimate is less certain

For context

·2.61% dividend yield
Evidence: Medium Range 482,962 KRW – 804,937 KRW

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Share price −5.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (482,962 KRW). The market is more pessimistic than our downside scenario.

Price vs Fair Value (5 years)

479,000 KRW 65,807 KRW Fair Value 643,950 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 65,807 KRW – 479,000 KRW · fair‑value band 482,962 KRW – 804,937 KRW · the 348,500 KRW price screens below the 643,950 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Korea Shipbuilding & Offshore Engineering Co Ltd (009540) currently trades at 348,500 KRW, while our model-based Fair Value estimate is 643,950 KRW, implying the stock looks roughly 45.9% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Industrials sector. Bull case: the Growth DCF group reads highest at a median of 860,926 KRW per share, and 20 of the 24 models we run sit above the 348,500 KRW price. Bear case: the Asset-Based group reads lowest at 125,882 KRW, and 4 of the 24 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Korea Shipbuilding & Offshore Engineering Co Ltd generated revenue of 31.3T KRW at a net margin of 8.0%. Revenue grew 20.2% year over year. It earns a return on equity of 21.8%. Net debt stands at 897B KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 482,962 KRW (bear case) to 804,937 KRW (bull case); at 348,500 KRW, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at 85%, 009540 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF 622,572 KRW 972,007 KRW 1,533,782 KRW 79
Growth DCF 634,450 KRW 945,482 KRW 1,415,328 KRW 78
Owner Earnings 338,795 KRW 517,512 KRW 804,830 KRW 75
All 24 models by family
DCF Models
FCF DCF 622,572 KRW 972,007 KRW 1,533,782 KRW 79
Owner Earnings 338,795 KRW 517,512 KRW 804,830 KRW 75
5Y Revenue Exit 555,793 KRW 859,933 KRW 1,247,086 KRW 72
5Y EBITDA Exit 603,631 KRW 949,690 KRW 1,352,073 KRW 75
5Y P/E Exit 522,728 KRW 797,895 KRW 1,084,966 KRW 71
10Y Revenue Exit 557,849 KRW 845,922 KRW 1,231,605 KRW 66
10Y EBITDA Exit 605,157 KRW 909,783 KRW 1,313,828 KRW 68
10Y P/E Exit 552,343 KRW 801,783 KRW 1,104,637 KRW 64
Earnings-Based
Graham-Dodd 208,517 KRW 657,224 KRW 875,177 KRW 64
Lynch FV 144,030 KRW 205,757 KRW 267,484 KRW 61
PEG = 1.0 144,030 KRW 205,757 KRW 267,484 KRW 57
EPV 538,868 KRW 626,600 KRW 704,584 KRW 74
Multiples
P/E Multiple 482,962 KRW 643,950 KRW 804,937 KRW 63
P/S Multiple 390,969 KRW 521,293 KRW 651,616 KRW 58
P/B Multiple 390,969 KRW 521,293 KRW 651,616 KRW 55
EV/EBIT 746,013 KRW 980,777 KRW 1,215,542 KRW 66
EV/EBITDA 660,761 KRW 867,109 KRW 1,073,456 KRW 67
EV/Revenue 544,391 KRW 759,822 KRW 975,254 KRW 54
Asset-Based
NCAV (Graham) 93,942 KRW 125,882 KRW 187,883 KRW 54
Growth DCF
Growth DCF 634,450 KRW 945,482 KRW 1,415,328 KRW 78
Rev-Margin DCF 555,793 KRW 860,926 KRW 1,213,165 KRW 72
Economic Profit
Residual Income 210,044 KRW 275,510 KRW 877,291 KRW 64
ROIC Compounder 571,180 KRW 706,297 KRW 857,484 KRW 72
Growth Earnings
Growth-Adj P/E 401,089 KRW 572,985 KRW 744,880 KRW 67

Widest divergence: Growth DCF (860,926 KRW) versus Asset-Based (125,882 KRW). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/S ratio 0.86 TTM
Dividend yield 2.6%
Net margin 7.2% FY2025
Return on equity 21.8% TTM
Return on assets (EBIT) 1.7% avg 5y
Operating margin 16.7% TTM
More key figures
Growth
Revenue (TTM) 31.3T KRW TTM
Revenue growth (YoY) +20.2% 3y avg +20.0%
EPS growth (YoY) +70.4%
Balance sheet & cash flow
Free cash flow 3.4T KRW FY2025
Net debt 897B KRW FY2023 · ≈ 0.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 67 · Market factors (momentum, volatility) 25

Profitability 44
Margins and returns on capital today
Quality Growth 85
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 29
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. engages in shipbuilding and offshore engineering business in South Korea.

Full company description

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. engages in shipbuilding and offshore engineering business in South Korea. The company offers ship types, including tankers, container ships, petrochemical carriers, LNG carriers, LNG-FSRUs, LPG carriers, LEG carriers, car carriers, Ro-Pax, Ro-Ro, LNG bunkering carriers, and LCO2 ships; and offshore plant business includes the manufacturing and installation of offshore structures, floating crude oil production facilities, power generation facilities, and other individual equipment units. It also specializes in building various types of special-purpose ships, such as destroyers, frigates, corvettes, logistics support ships, amphibious, minelaying, marine intelligence, surface, rescue, and training ships, support vessels, high-speed boats, and patrol/rescue ships; and engine and machinery division, the company provides heavy and medium engines, propellers, marine axle meters, selective catalytic reduction systems, and methanation catalytic systems. In addition, it develops and supplies photovoltaic modules and systems, solid oxide fuel cells for onshore power generation and marine applications, and solid oxide electrolyzers; gas and green system offerings include Methanol LFSS, Ammonia LFSS, LPG CHS, Re-Liquefaction Unit, Re-Gasifier, and Hi-ALS; and shipbuilding also provides green ship propulsion solutions, including four-stroke marine engines, as well as electric power systems such as batteries and fuel cells to drive propulsion motors without the use of traditional power generation engines. Further, it provides other offerings including equipment such as propellers, shafts, SCR systems, ballast water treatment systems, engine power plants, industrial boilers, solar modules and systems, ITER, industrial cranes, and comprehensive marine system solutions. The company was formerly known as Korea Shipbuilding & Offshore Engineering Co., Ltd. The company was founded in 1972 and is based in Seongnam-si, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Korea Shipbuilding & Offshore Engineering Co Ltd reported revenue of 29.9T KRW in FY2025 versus 15.5T KRW in FY2021, a compound +17.9%/yr. Reported net income was 2.2T KRW in FY2025.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
29.9T KRW
Latest YoY
+17.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+20.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.0%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.0%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+70.2% (67.6 + 2.6)
Revenue +17.9%/yr
FY21 15.5T KRW
FY22 17.3T KRW
FY23 21.3T KRW
FY24 25.5T KRW
FY25 29.9T KRW
Net income
FY21 −929B KRW
FY22 −217B KRW
FY23 222B KRW
FY24 1.2T KRW
FY25 2.2T KRW

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Cite: Fair Value Calculator (2026). "Korea Shipbuilding & Offshore Engineering Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/009540

Peer Group

Aerospace & Defense · 229 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside +85% · Top 25%
Return on equity (TTM) 22% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 17% · Above median
Revenue growth 20% · Above median
Dividend yield (TTM) 2.6% · Top 25%
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
PEG 0.21× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE100 · sector 50
PAST87 · sector 38
HEALTH97 · sector 93
DIVIDEND52 · sector 16

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Lockheed Martin Corporation LMT $565.89 $419.01 −26%
Howmet Aerospace Inc HWM $264.85 $50.43 −81%
General Dynamics Corporation GD $379.32 $274.32 −28%
Northrop Grumman Corporation NOC $545.57 $356.59 −35%
TransDigm Group TDG $1,235 $571.03 −54%
L3Harris Technologies, Inc LHX $262.82 $146.55 −44%
Thales S.A HO €243.70 €171.13 −30%

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Frequently asked questions

Is Korea Shipbuilding & Offshore Engineering Co Ltd (009540) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 643,950 KRW versus a price of 348,500 KRW, about +85% upside (undervalued).
What is the fair value of 009540?
Our model-based fair value for Korea Shipbuilding & Offshore Engineering Co Ltd is 643,950 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 348,500 KRW.
What is the quality score of 009540?
Korea Shipbuilding & Offshore Engineering Co Ltd has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Korea Shipbuilding & Offshore Engineering Co Ltd (009540)?
Korea Shipbuilding & Offshore Engineering Co Ltd reported trailing-twelve-month revenue of about 31.3T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 009540?
The net profit margin of Korea Shipbuilding & Offshore Engineering Co Ltd is about 8.0%, meaning it keeps roughly 8.0% of revenue as net income. Based on the latest reported figures.
Does Korea Shipbuilding & Offshore Engineering Co Ltd pay a dividend?
Korea Shipbuilding & Offshore Engineering Co Ltd currently shows a dividend yield of about 2.61% relative to its recent price (as of Aug 13, 2026).
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