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Dongbu (005960) Fair Value & Analysis

Industrials · KR · Market cap 145B KRW

D Dongbu 005960 · KO
Price7,740 KRW
Fair Value22,852 KRW
Upside+195.3%
Quality52/100
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Expensive Growth
Thin margins · 2.9% net margin
Low debt · negative free cash flow
4.78% dividend yield
Ranks above peers (6/10)
Narrow moat 31/100
Evidence: Medium Range 20,879 KRW – 31,040 KRW Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 6 days ago

Fair value updated Aug 13, 2026, revised from 23,485 KRW to 22,852 KRW (−2.7%) since Jul 22, 2026. Share price +23.4% over the past month.

A solid business, screening 195% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (20,879 KRW). The market is more pessimistic than our downside scenario.
  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

11,967 KRW 3,208 KRW Fair Value 22,852 KRW Mar 2021 Aug 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 3,208 KRW – 11,967 KRW · fair‑value band 20,879 KRW – 31,040 KRW · the 7,740 KRW price screens below the 22,852 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

Dongbu (005960) currently trades at 7,740 KRW, while our model-based Fair Value estimate is 22,852 KRW, implying the stock looks roughly 195.3% undervalued today. The Quality Score stands at 52/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Dongbu generated revenue of 1.8T KRW at a net margin of 2.9%. Revenue grew 4.4% year over year. It earns a return on equity of 8.5%. Net debt stands at 306B KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 20,879 KRW (bear case) to 31,040 KRW (bull case); at 7,740 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 27% below its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at 195%, 005960 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Residual Income 21,078 KRW 23,159 KRW 32,892 KRW 76
ROIC Compounder 9,840 KRW 12,276 KRW 14,407 KRW 72
Growth-Adj P/E 26,741 KRW 38,202 KRW 49,662 KRW 68
All 14 models by family
DCF Models
Owner Earnings 25,443 KRW 38,408 KRW 56,723 KRW 31
Earnings-Based
Graham-Dodd 15,460 KRW 34,635 KRW 44,276 KRW 54
PEG = 1.0 5,634 KRW 8,048 KRW 10,463 KRW 46
EPV 9,840 KRW 12,276 KRW 14,407 KRW 59
Multiples
P/E Multiple 35,808 KRW 47,744 KRW 59,680 KRW 63
P/S Multiple 28,988 KRW 38,650 KRW 48,313 KRW 58
P/B Multiple 28,988 KRW 38,650 KRW 48,313 KRW 55
EV/EBIT 21,058 KRW 29,669 KRW 38,281 KRW 53
EV/EBITDA 21,404 KRW 30,131 KRW 38,858 KRW 54
EV/Revenue 13,662 KRW 21,565 KRW 29,467 KRW 43
Asset-Based
NCAV (Graham) 12,213 KRW 16,366 KRW 24,427 KRW 50
Economic Profit
Residual Income 21,078 KRW 23,159 KRW 32,892 KRW 76
ROIC Compounder 9,840 KRW 12,276 KRW 14,407 KRW 72
Growth Earnings
Growth-Adj P/E 26,741 KRW 38,202 KRW 49,662 KRW 68

Widest divergence: DCF Models (38,408 KRW) versus Earnings-Based (12,276 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.8T KRW
Revenue growth (YoY) +4.4%
Net margin 2.9%
Return on equity 8.5%
Free cash flow −23.6B KRW FY2025
Operating margin 1.9%
More key figures
Dividend yield 5.0%
EPS growth (YoY) +9.2%
Net debt 306B KRW FY2025

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

Quality Score breakdown

Overall quality 52/100

Of which business quality 48 · Market factors (momentum, volatility) 57

Profitability 39
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 12
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 69
Distance to the 52-week high (market factor)
Net Issuance 83
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.

About the company

Dongbu Corporation operates as a construction company in South Korea. The company undertakes various civil works, such as roads, bridges, tunnels, port facilities, expressway, railway, subway, water treatment, sewage, airport, leisure facility, and other related services; architecture works, including building of medical facilities, government offices, …

Full company description

Dongbu Corporation operates as a construction company in South Korea. The company undertakes various civil works, such as roads, bridges, tunnels, port facilities, expressway, railway, subway, water treatment, sewage, airport, leisure facility, and other related services; architecture works, including building of medical facilities, government offices, education and research centers, commercial buildings, logistics and sales, and sports facilities, as well as remodeling; residential works for apartment building, apartment houses, rental housing, and remodeling; and plant works for environmental, energy, industrial, other plant facilities. It is also involved in the mine development, rental business, power generation, and real estate activities. The company was formerly known as Miryung Engineering & Construction Co. Ltd and changed its name to Dongbu Corporation in March 1989. Dongbu Corporation was founded in 1969 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

Dongbu reported revenue of 1.8T KRW in FY2025 versus 1.1T KRW in FY2021, a compound +11.3%/yr. Reported net income was 52.2B KRW in FY2025, compounding −18.3%/yr from FY2021.

Growth Quality 43/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.8T KRW
Latest YoY
+4.2%
Avg. 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.
+6.4%
Avg. 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.
+7.7%
Avg. 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.
+1.6%
Revenue +11.3%/yr
FY21 1.1T KRW
FY22 1.5T KRW
FY23 1.9T KRW
FY24 1.7T KRW
FY25 1.8T KRW
Net income −18.3%/yr
FY21 117B KRW
FY22 40.1B KRW
FY23 −4.4B KRW
FY24 −106B KRW
FY25 52.2B KRW

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Cite: Fair Value Calculator (2026). "Dongbu Fair Value". https://www.fairvalue-calculator.com/stock/005960

Peer Group

Engineering & Construction · 834 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 52 · Above median
Fair Value upside +195% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 1% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 4% · Above median
Dividend yield (TTM) 3.9% · Top 25%
Debt / equity 0.39× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

EV/EBITDA 2.8× · Cheaper than 75% of peers

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 19
FUTURE22 · sector 14
PAST34 · sector 26
HEALTH81 · sector 94
DIVIDEND78 · sector 39

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹228.50 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 46,350 KRW 43,924 KRW -5%

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Frequently asked questions

Is Dongbu (005960) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 22,852 KRW versus a price of 7,740 KRW, about +195% (undervalued).
What is the fair value of 005960?
Our model-based fair value for Dongbu is 22,852 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 7,740 KRW.
What is the quality score of 005960?
Dongbu has a Quality Score of 52/100. 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 Dongbu (005960)?
Dongbu reported trailing-twelve-month revenue of about 1.8T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 005960?
The net profit margin of Dongbu is about 2.9%, meaning it keeps roughly 2.9% of revenue as net income. Based on the latest reported figures.
Does Dongbu pay a dividend?
Dongbu currently shows a dividend yield of about 4.97% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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