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Daewoo Engineering & Construction (047040) Fair Value & Analysis

Industrials · KR · Market cap 6.8T KRW (≈ $4.8B) · ISIN KR7047040001

What is Daewoo Engineering & Construction really worth?

DE Daewoo Engineering & Construction 047040 · KO
Price16,850 KRW
Fair Value6,507 KRW
Upside−61.4%
Quality42/100

Below-average quality, and trading another 159% above our fair value of 6,507 KRW.

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Strengths

Moderate debt · generates free cash flow

Risks

!Weak Growth (revenue 5y −0.2 %/yr)
!Loss-making · -9.8% net margin
!Trails peers (2/10)
!Narrow moat 21/100
!Evidence only low, so the estimate is less certain
!Weak on dividend: 1 out of 100
Evidence: Low Range 3,166 KRW – 9,847 KRW

Fair value as of: Aug 13, 2026

From 9 valuation models · updated 22 days ago

Share price +26.7% over the past month.

What runs behind every stock

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

What matters now

  • The price sits above even our optimistic bull case (9,847 KRW). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (3,166 KRW to 9,847 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

37,150 KRW 2,970 KRW Fair Value 6,507 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 2,970 KRW – 37,150 KRW · fair‑value band 3,166 KRW – 9,847 KRW · the 16,850 KRW price screens above the 6,507 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Daewoo Engineering & Construction (047040) currently trades at 16,850 KRW, while our model-based Fair Value estimate is 6,507 KRW, implying the stock looks roughly 158.9% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of 15,050 KRW per share, and 2 of the 9 models we run sit above the 16,850 KRW price. Bear case: the Asset-Based group reads lowest at 5,459 KRW, and 7 of the 9 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Daewoo Engineering & Construction generated revenue of 7.9T KRW at a net margin of −9.8%. Revenue declined 6.0% year over year. It earns a return on equity of −19.2%. Net debt stands at 1.9T KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 3,166 KRW (bear case) to 9,847 KRW (bull case); at 16,850 KRW, the current price sits above 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 58% below its 52-week high, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −61%, 047040 screens richer 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 10,114 KRW 22,351 KRW 46,576 KRW 74
Growth DCF 9,909 KRW 21,035 KRW 42,018 KRW 73
5Y Revenue Exit 6,907 KRW 14,145 KRW 24,178 KRW 70
All 9 models by family
DCF Models
FCF DCF 10,114 KRW 22,351 KRW 46,576 KRW 74
5Y Revenue Exit 6,907 KRW 14,145 KRW 24,178 KRW 70
10Y Revenue Exit 7,543 KRW 15,050 KRW 27,089 KRW 64
Dividend Discount
Gordon GGM 68.61 KRW 149.79 KRW 252.02 KRW 65
DDM Multi-Stage 68.61 KRW 122.70 KRW 156.10 KRW 66
Multiples
EV/Revenue 5,483 KRW 8,823 KRW 12,163 KRW 53
Asset-Based
NCAV (Graham) 4,074 KRW 5,459 KRW 8,148 KRW 54
Growth DCF
Growth DCF 9,909 KRW 21,035 KRW 42,018 KRW 73
Rev-Margin DCF 6,907 KRW 13,934 KRW 23,466 KRW 70

Widest divergence: DCF Models (15,050 KRW) versus Dividend Discount (122.70 KRW). Highest evidence: FCF DCF (74).

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Key figures & financial health

P/S ratio 0.86 TTM
Dividend yield 0.0%
Net margin −11.3% FY2025
Return on equity −19.2% TTM
Return on assets (EBIT) 2.5% avg 5y
Operating margin 13.1% TTM
More key figures
Growth
Revenue (TTM) 7.9T KRW TTM
Revenue growth (YoY) −6.0% 3y avg −8.2%
EPS growth (YoY) +247%
Balance sheet & cash flow
Free cash flow 352B KRW FY2025
Net debt 1.9T KRW FY2025 · ≈ 5.4 yrs of FCF

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

Quality Score breakdown

Overall quality 42/100

Of which business quality 41 · Market factors (momentum, volatility) 50

Profitability 9
Margins and returns on capital today
Quality Growth 18
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 5
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 68
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

Daewoo Engineering & Construction Co., Ltd. engages in the engineering and construction business in South Korea and internationally. It builds civil infrastructure projects, including highways, roads, bridges, railways, subways, harbors and reclamation facilities, environmental, and leisure projects.

Full company description

Daewoo Engineering & Construction Co., Ltd. engages in the engineering and construction business in South Korea and internationally. It builds civil infrastructure projects, including highways, roads, bridges, railways, subways, harbors and reclamation facilities, environmental, and leisure projects. The company also constructs housing projects, such as apartments, studio apartments, urban lifestyle homes, urban residential, commercial complexes, town houses, villas, and non-residential facilities, as well as provides redevelopment, reconstruction, and remodeling services. In addition, it builds plant facilities comprising LNG, oil and gas, refinery and petrochemical, power plants, and nuclear power generation and related projects. Further, the company engages in domestic and international energy, infrastructure, and new city construction projects; architectural business, such as office buildings, hotels, exhibitions, sports facilities, condominiums, and education, research, and medical facilities; domestic and international investment development, such as real estate, IPP, and PPP; steel frame and PC businesses; road and operation of service areas; and real estate rental and hotel businesses. The company was founded in 1973 and is headquartered in Seoul, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Daewoo Engineering & Construction reported revenue of 8.1T KRW in FY2025 versus 8.7T KRW in FY2021, a compound −1.9%/yr. Reported net income was −912B KRW in FY2025.

Growth Quality 22/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
8.1T KRW
Latest YoY
−23.3%
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.
−8.2%
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.
−0.2%
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.
+25.3%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue −1.9%/yr
FY21 8.7T KRW
FY22 10.4T KRW
FY23 11.6T KRW
FY24 10.5T KRW
FY25 8.1T KRW
Net income
FY21 485B KRW
FY22 504B KRW
FY23 512B KRW
FY24 234B KRW
FY25 −912B KRW

047040 screens 159% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "Daewoo Engineering & Construction Fair Value". https://www.fairvalue-calculator.com/stock/047040

Peer Group

Engineering & Construction · 816 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 42 · Below median
Fair Value upside −61% · Bottom 25%
Return on assets −4% · Bottom 25%
Net margin (TTM) −10% · Bottom 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth −6% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.83× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/FCF 0.0× · 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
VALUE0 · sector 16
FUTURE0 · sector 11
PAST0 · sector 26
HEALTH59 · sector 94
DIVIDEND1 · sector 39

VALUE 0: the price sits above our fair-value range.

Values & ESG

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

None of the checked exposures detected

Similar stocks

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

Stock Price Fair Value vs Fair Value
Quanta Services, Inc PWR $620.06 $143.92 −77%
Vinci SA DG €114.35 €185.62 +62%
Comfort Systems USA, Inc FIX $1,615 $519.97 −68%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.40 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
EMCOR Group EME $775.04 $549.47 −29%
MasTec, Inc MTZ $241.00 $100.00 −59%
Bouygues SA EN €46.65 €65.67 +41%

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Frequently asked questions

Is Daewoo Engineering & Construction (047040) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 6,507 KRW versus a price of 16,850 KRW, about −61% upside (overvalued).
What is the fair value of 047040?
Our model-based fair value for Daewoo Engineering & Construction is 6,507 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 16,850 KRW.
What is the quality score of 047040?
Daewoo Engineering & Construction has a Quality Score of 42/100. 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 Daewoo Engineering & Construction (047040)?
Daewoo Engineering & Construction reported trailing-twelve-month revenue of about 7.9T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 047040?
The net profit margin of Daewoo Engineering & Construction is about −9.8%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Daewoo Engineering & Construction pay a dividend?
Daewoo Engineering & Construction currently shows a dividend yield of about 0.03% relative to its recent price (as of Aug 13, 2026).
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