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Korea Information Engineering Services Co (039740) Fair Value & Analysis

Technology · KR · Market cap 24.3B KRW

KI Korea Information Engineering Services Co 039740 · KQ
Price3,210 KRW
Fair Value4,560 KRW
Upside+42.0%
Quality49/100
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Weak Growth
Thin margins · 2.0% net margin
Low debt · generates free cash flow
Trails peers (3/8)
Narrow moat 25/100
Evidence: High Range 3,420 KRW – 5,699 KRW Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Share price +5.2% over the past month.

Below-average quality, screening 42% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (3,420 KRW). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) 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)

8,720 KRW 2,250 KRW Fair Value 4,560 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range 2,250 KRW – 8,720 KRW · fair‑value band 3,420 KRW – 5,699 KRW · the 3,210 KRW price screens below the 4,560 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Korea Information Engineering Services Co (039740) currently trades at 3,210 KRW, while our model-based Fair Value estimate is 4,560 KRW, implying the stock looks roughly 42.0% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Technology 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: high), always confirm before acting.

Over the trailing twelve months, Korea Information Engineering Services Co generated revenue of 110B KRW at a net margin of 2.0%. Revenue declined 42.1% year over year. Net debt stands at 517M KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 3,420 KRW (bear case) to 5,699 KRW (bull case); at 3,210 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 47% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -9% fair-value upside, at 42%, 039740 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
Growth DCF 4,395 KRW 6,029 KRW 8,307 KRW 80
Residual Income 4,841 KRW 4,789 KRW 4,328 KRW 76
Rev-Margin DCF 2,247 KRW 2,680 KRW 3,188 KRW 74
All 26 models by family
DCF Models
FCF DCF 4,307 KRW 6,104 KRW 8,744 KRW 38
Owner Earnings 5,076 KRW 7,252 KRW 10,449 KRW 31
5Y Revenue Exit 2,247 KRW 2,615 KRW 3,021 KRW 39
5Y EBITDA Exit 3,396 KRW 4,704 KRW 6,169 KRW 41
5Y P/E Exit 4,240 KRW 6,239 KRW 8,269 KRW 38
10Y Revenue Exit 2,960 KRW 3,450 KRW 3,995 KRW 36
10Y EBITDA Exit 3,698 KRW 4,879 KRW 6,335 KRW 37
10Y P/E Exit 4,230 KRW 5,928 KRW 7,897 KRW 35
Earnings-Based
Graham-Dodd 1,824 KRW 4,888 KRW 6,397 KRW 54
Lynch FV 951.86 KRW 1,360 KRW 1,768 KRW 50
PEG = 1.0 951.86 KRW 1,360 KRW 1,768 KRW 46
EPV 961.83 KRW 1,013 KRW 1,057 KRW 59
Dividend Discount
Gordon GGM 459.09 KRW 954.55 KRW 1,514 KRW 70
DDM Multi-Stage 459.09 KRW 713.42 KRW 984.63 KRW 61
Multiples
P/E Multiple 4,023 KRW 5,364 KRW 6,705 KRW 63
P/S Multiple 3,420 KRW 4,560 KRW 5,699 KRW 58
P/B Multiple 3,420 KRW 4,560 KRW 5,699 KRW 55
EV/EBIT 1,362 KRW 1,598 KRW 1,833 KRW 53
EV/EBITDA 3,191 KRW 4,037 KRW 4,882 KRW 54
EV/Revenue 1,132 KRW 1,336 KRW 1,540 KRW 43
Asset-Based
NCAV (Graham) 3,244 KRW 4,347 KRW 6,488 KRW 50
Growth DCF
Growth DCF 4,395 KRW 6,029 KRW 8,307 KRW 80
Rev-Margin DCF 2,247 KRW 2,680 KRW 3,188 KRW 74
Economic Profit
Residual Income 4,841 KRW 4,789 KRW 4,328 KRW 76
ROIC Compounder 961.83 KRW 1,013 KRW 1,057 KRW 72
Growth Earnings
Growth-Adj P/E 3,181 KRW 4,544 KRW 5,907 KRW 68

Widest divergence: DCF Models (4,879 KRW) versus Dividend Discount (713.42 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 110B KRW
Revenue growth (YoY) -42.1%
Net margin 2.0%
Return on equity 786%
Free cash flow 2.7B KRW FY2025
Operating margin 0.7%
More key figures
EPS growth (YoY) -93.9%
Net debt 517M KRW FY2024

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 50 · Market factors (momentum, volatility) 28

Profitability 40
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 17
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 32
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.

About the company

Korea Information Engineering Services Co., Ltd. provides IT solutions in South Korea. It offers AI-based chatbot solutions and online shopping mall analysis services; RollBook, a location-based solution that provides attendance management function in universities and academics, and real-time workflow and facility management solutions; and LBS business …

Full company description

Korea Information Engineering Services Co., Ltd. provides IT solutions in South Korea. It offers AI-based chatbot solutions and online shopping mall analysis services; RollBook, a location-based solution that provides attendance management function in universities and academics, and real-time workflow and facility management solutions; and LBS business management mobile and enterprise resource planning (ERP) system for IT distribution company solutions. The company also supplies PCs/notebooks; and servers/storage products. Korea Information Engineering Services Co., Ltd. was founded in 1990 and is headquartered in Seongnam, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Korea Information Engineering Services Co reported revenue of 146B KRW in FY2025 versus 172B KRW in FY2021, a compound −3.9%/yr. Reported net income was 2.2B KRW in FY2025, compounding −15.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
146B KRW
Latest YoY
−24.6%
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.
+11.6%
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.
−4.1%
Avg. growth/yr (23Y) 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.
+11.3%
Revenue −3.9%/yr
FY21 172B KRW
FY22 105B KRW
FY23 116B KRW
FY24 194B KRW
FY25 146B KRW
Net income −15.4%/yr
FY21 4.2B KRW
FY22 3.3B KRW
FY23 2.0B KRW
FY24 3.6B KRW
FY25 2.2B KRW

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Cite: Fair Value Calculator (2026). "Korea Information Engineering Services Co Fair Value". https://www.fairvalue-calculator.com/stock/039740

Peer Group

Information Technology · 3403 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Computers, Phones & Household Electronics” was too small, so the broader sector is used.)

Quality Score 49 · Below median
Fair Value upside +42% · Top 25%
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 1% · Below median
Revenue growth -42% · Bottom 25%

Valuation Multiples vs Information Technology median · lower = cheaper

P/FCF 0.0× · 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.

VALUE 89 · sector 0
FUTURE 0 · sector 38
PAST 0 · sector 22
HEALTH 100 · sector 97
DIVIDEND 0 · sector 28

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 Computers, Phones & Household Electronics stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
UIL Co 049520 3,605 KRW 14,308 KRW +297%
SEOWONINTECH.Co.,Ltd 093920 4,710 KRW 7,085 KRW +50%
TJ media Co 032540 3,410 KRW 3,117 KRW -9%
Optrontec Inc 082210 1,885 KRW 952.61 KRW -49%
Atec Co 045660 7,440 KRW 2,901 KRW -61%
Puloon Technology Inc 094940 5,190 KRW 883.51 KRW -83%
Yulho Co 072770 934.00 KRW 849.13 KRW -9%
Korea Computer Terminal Inc 089150 1,823 KRW 2,466 KRW +35%
Finetechnix. Co 106240 1,300 KRW 234.08 KRW -82%
Hansol Inticube Co 070590 1,630 KRW 1,146 KRW -30%

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Frequently asked questions

Is Korea Information Engineering Services Co (039740) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 4,560 KRW versus a price of 3,210 KRW, about +42% (undervalued).
What is the fair value of 039740?
Our model-based fair value for Korea Information Engineering Services Co is 4,560 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 3,210 KRW.
What is the quality score of 039740?
Korea Information Engineering Services Co has a Quality Score of 49/100. 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 Information Engineering Services Co (039740)?
Korea Information Engineering Services Co reported trailing-twelve-month revenue of about 110B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 039740?
The net profit margin of Korea Information Engineering Services Co is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.

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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