Lotte Data Communication Company (286940) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Lotte Data Communication Company stock KRW 18,395, price KRW 16,100, upside +14.3%, quality 57 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range 15,977 KRW – 49,420 KRW · fair‑value band 17,144 KRW – 22,994 KRW · the 16,100 KRW price screens below the 18,395 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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LOTTE INNOVATE Co.,Ltd provides IT services in Korea and internationally.
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The company offers digital transformation consulting solutions, such as Smart Factory, a platform that views and controls demand prediction, production process, and safety management in real time; Smart Logistics, an automated logistic and IT solution for the entire process from transportation to storage and delivery; Smart farm, an automation platform for IoT, Cloud, and Big Data; and Smart Retail.
It also provides security solutions, security management, security system integration, and security consulting services.
In addition, the company provides Medical IT, an IT-based In-hospital platform; and HI-U platform, a lifecare platform that provides medical checkups, health notes, medication intake management, insurance care, health; intelligent, automated, and smart buildings; Smart Transportation, a convenient and safe transportation system using information technology; facility management solutions for effective asset and energy management; Smart Office platform, a digital workplace for smart office work; LOTTE environmental and energy total solution; and home IoT solutions, as well as provides mobile communication services by co-working with mobile network operators.
Further, the company provides IT outsourcing, robotic process automation, global offshoring, and application service provider services, data combinations, as well as cloud solutions comprising L.cloud and cloud service brokerage. Additionally, it operates hybrid cloud center.
It serves customers in retail, manufacturing, logistics, finance, and healthcare sectors. The company was founded in 1996 and is based in Seoul, South Korea. LOTTE INNOVATE Co.,Ltd operates as a subsidiary of LOTTE Corporation.
Stock analysis
Lotte Data Communication Company (286940) currently trades at 16,100 KRW, while our model-based Fair Value estimate is 18,395 KRW, implying the stock looks roughly 12% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of 26,663 KRW per share, and 15 of the 26 models we run sit above the 16,100 KRW price.
Bear case: the Dividend Discount group reads lowest at 5,480 KRW, and 11 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: 17,144 KRW (bear) to 22,994 KRW (bull), the price of 16,100 KRW sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Lotte Data Communication Company reported revenue of 1.2T KRW in FY2025 versus 930B KRW in FY2021, a compound +5.9%/yr. Reported net income was 9.9B KRW in FY2025, compounding −26.8%/yr from FY2021.
Key figures
Market cap 244B KRW (≈ $180M) Micro · P/E ratio 15.6 · P/S ratio 0.33 · EPS (TTM) 1,143 KRW · Dividend yield 4.3% · Net margin 1.5% · Return on equity 2.4% · Return on assets (EBIT) 4.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 29 out of 100 (medium confidence).
What moves the price
The share trades about 33% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 20% fair-value upside, at 14%, 286940 screens richer than that median.
Fair Value models
Bear17,144 KRWFair Value 18,395 KRWBull22,994 KRW
Price 16,100 KRW · Upside +14.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (380.09 KRW per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−0.9%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+3.7%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+6.6%
Start year 2020 (pandemic)
Revenue growth 8 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+29.4%
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What shareholders gained per year (last 5 years), in KRW ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. 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.
−0.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year−4.7%
Dividend (yield on the price)4.3%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.5% → 3%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−5.5%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (South Korea: IMF forecast 2.1% a year to 2030, 2.1% from 2016 to 2025) that is about −7.4% a year for the price and +2.2% for the forecasts.
Compare Lotte Data Communication Company with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Information Technology Services · 479 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside+14.3% · Above median
Profitability
Return on equity (12 months)2.4% · Below median
Return on assets1.7% · Below median
Net margin (12 months)2.4% · Below median
Operating margin (12 months)4.5% · Below median
Growth and dividend
Revenue growth (quarter YoY)−2.2% · Below median
Dividend yield (12 months)4.3% · Top 25%
Balance sheet
Debt / equity0.20× · Above median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Lotte Data Communication Company Fair Value". https://www.fairvalue-calculator.com/stock/286940
Frequently asked questions
Is Lotte Data Communication Company (286940) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of 18,395 KRW versus a price of 16,100 KRW, about +14% upside (undervalued).
What is the fair value of 286940?
Our model-based fair value for Lotte Data Communication Company is 18,395 KRW (as of Nov 7, 2026), built from audited fundamentals. The current price: 16,100 KRW.
What is the quality score of 286940?
Lotte Data Communication Company has a Quality Score of 57/100. 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 price target for Lotte Data Communication Company (286940)?
Our model-based price target is the fair value of 18,395 KRW (as of Nov 7, 2026) from 26 valuation models. Cautious scenario 17,144 KRW, optimistic scenario 22,994 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the Lotte Data Communication Company stock forecast for 2026?
Our models put fair value at 18,395 KRW, about +14% upside versus a price of 16,100 KRW (undervalued). Cautious scenario 17,144 KRW, optimistic scenario 22,994 KRW. The calculation is refreshed regularly with new filings.
What is the revenue of Lotte Data Communication Company (286940)?
Lotte Data Communication Company reported trailing-twelve-month revenue of about 1.2T KRW (latest available figure, as of Nov 7, 2026).
Does Lotte Data Communication Company pay a dividend?
Lotte Data Communication Company currently shows a dividend yield of 4.35% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Lotte Data Communication Company (286940) and when is the ex-dividend date?
Lotte Data Communication Company pays a dividend of 700.00 KRW per share a year, a dividend yield of 4.3%. The last ex-dividend date was Mar 30, 2026. The payout ratio is 61.2% of earnings. Free cash flow covers the dividend 4.03 times. Our assessment: Sustainable. Payout and cash coverage both look sustainable.
What growth is priced into Lotte Data Communication Company (286940)?
For today's price to be fair in a discounted-cash-flow model, Lotte Data Communication Company would have to grow free cash flow by -5.5 % per year for five years (discount rate 11.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.6 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of 286940 use?
Our models discount Lotte Data Communication Company at 11.6 %: a base by market capitalisation (micro), damped by beta 0.35, country premium for South Korea. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Lotte Data Communication Company that is -5.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.6 %) and the same formula as our fair value.
How much growth has Lotte Data Communication Company (286940) delivered so far?
Over the past 5 years revenue at Lotte Data Communication Company grew +6.6 % a year. The price currently implies free-cash-flow growth of -5.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Lotte Data Communication Company (286940) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Lotte Data Communication Company (-5.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Lotte Data Communication Company (286940)?
The free-cash-flow yield on the price is 17.54 %: that much free cash flow Lotte Data Communication Company produces per unit of market value. When it exceeds the discount rate of our models (11.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lotte Data Communication Company (286940)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lotte Data Communication Company it is 18,395 KRW per share (as of Nov 7, 2026), against a price of 16,100 KRW. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Lotte Data Communication Company stock overvalued or undervalued in 2026?
As of Nov 7, 2026, 286940 trades below its calculated fair value: price 16,100 KRW, fair value 18,395 KRW, a gap of about +14% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 286940?
No. The price is what the market pays today (16,100 KRW); the fair value is what the company's own numbers justify (18,395 KRW). For Lotte Data Communication Company the two are 2,295 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is Lotte Data Communication Company worth?
The market values Lotte Data Communication Company at about 244B KRW (market capitalisation, as of Nov 7, 2026). Per share that is 16,100 KRW; our models calculate a fair value of 18,395 KRW per share.
What do the bullish and bearish scenarios say about 286940?
Our models span a range for Lotte Data Communication Company: cautious scenario 17,144 KRW, base 18,395 KRW, optimistic 22,994 KRW per share (as of Nov 7, 2026, price 16,100 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 286940?
Lotte Data Communication Company trades at a price-to-earnings ratio of 15.6 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 18,395 KRW is built from several models across several years. Other multiples: P/B 0.6, P/S 0.3, EV/EBITDA 3.4.
How solid is the balance sheet of Lotte Data Communication Company (286940)?
Balance-sheet figures for Lotte Data Communication Company (as of Nov 7, 2026): return on equity 2.4%, debt of 0.20 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is 286940 from its 52-week high?
Lotte Data Communication Company trades at 16,100 KRW, about 33% below its 52-week high of 24,100 KRW and at the low of 16,030 KRW (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of 18,395 KRW is for.
Which stocks are comparable to Lotte Data Communication Company?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Lotte Data Communication Company stock attractive at the current price?
The data as of Nov 7, 2026: price 16,100 KRW, calculated fair value 18,395 KRW (+14%), Quality Score 57/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 286940 calculated?
We run Lotte Data Communication Company through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 18,395 KRW builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Lotte Data Communication Company currently trades 12% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Lotte Data Communication Company (286940)?
The closing price on Nov 6, 2026 was 16,100 KRW. Our model-based fair value is 18,395 KRW, about +14% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lotte Data Communication Company right now?
The price is below even our cautious bear case (17,144 KRW). The market is more pessimistic than our downside scenario. The price sits below our cautious bear case: the market assumes less than even our pessimistic scenario. The data supports the verdict: every model runs on fully documented inputs.
Key figures of Lotte Data Communication Company
How large is the market capitalisation of Lotte Data Communication Company (286940)?
The market capitalisation of Lotte Data Communication Company is 244B KRW (≈ $180M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Lotte Data Communication Company (286940)?
The price-to-sales ratio of Lotte Data Communication Company is 0.33 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Lotte Data Communication Company (286940)?
Earnings per share at Lotte Data Communication Company are 1,143 KRW (price ÷ EPS = P/E 15.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Lotte Data Communication Company (286940)?
The dividend yield of Lotte Data Communication Company is 4.3% (payout 61.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Lotte Data Communication Company (286940)?
The net margin of Lotte Data Communication Company is 1.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Lotte Data Communication Company (286940)?
The return on equity (ROE) of Lotte Data Communication Company is 2.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Lotte Data Communication Company (286940)?
On an EBIT basis the return on assets of Lotte Data Communication Company is 4.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Lotte Data Communication Company (286940)?
The operating margin of Lotte Data Communication Company is 4.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lotte Data Communication Company (286940)?
Revenue at Lotte Data Communication Company is growing −2.2% versus a year earlier (3y avg +3.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Lotte Data Communication Company (286940)?
Earnings per share at Lotte Data Communication Company are growing +158% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Lotte Data Communication Company (286940) carry?
The net debt of Lotte Data Communication Company is 60.9B KRW (fiscal year 2025, ≈ 1.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 7, 2026