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Daewoo Engineering & Construction Co (047040) Fair Value & Analysis

Industrials · KR · Market cap 6.8T KRW

DE Daewoo Engineering & Construction Co 047040 · KO
Price16,410 KRW
Fair Value6,507 KRW
Upside-60.4%
Quality42/100
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Weak Growth
Loss-making · -9.8% net margin
Moderate debt · generates free cash flow
Trails peers (2/9)
Narrow moat 21/100
Evidence: Medium Range 3,166 KRW – 9,847 KRW Share as image

Fair value as of: Jul 16, 2026

From 9 valuation models · updated 25 days ago

Share price +3.7% over the past month.

Below-average quality, and screening another 60% overvalued on our models.

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.
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Price vs Fair Value (5 years)

37,150 KRW 2,970 KRW Fair Value 6,507 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 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 16,410 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 Jul 16, 2026.

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Analysis

Daewoo Engineering & Construction Co (047040) currently trades at 16,410 KRW, while our model-based Fair Value estimate is 6,507 KRW, implying the stock looks roughly 60.4% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Daewoo Engineering & Construction Co 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 Jul 16, 2026

Our scenario range runs from 3,166 KRW (bear case) to 9,847 KRW (bull case); at 16,410 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 59% below its 52-week high and 394% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -60%, 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 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 BearBaseBull Evidence
Highest evidence
Growth DCF 9,909 KRW 21,035 KRW 42,018 KRW 80
Rev-Margin DCF 6,907 KRW 13,934 KRW 23,466 KRW 74
Gordon GGM 68.61 KRW 149.79 KRW 252.02 KRW 70
All 9 models by family
DCF Models
FCF DCF 10,114 KRW 22,351 KRW 46,576 KRW 38
5Y Revenue Exit 6,907 KRW 14,145 KRW 24,178 KRW 39
10Y Revenue Exit 7,543 KRW 15,050 KRW 27,089 KRW 36
Dividend Discount
Gordon GGM 68.61 KRW 149.79 KRW 252.02 KRW 70
DDM Multi-Stage 68.61 KRW 122.70 KRW 156.10 KRW 61
Multiples
EV/Revenue 5,483 KRW 8,823 KRW 12,163 KRW 43
Asset-Based
NCAV (Graham) 4,074 KRW 5,459 KRW 8,148 KRW 50
Growth DCF
Growth DCF 9,909 KRW 21,035 KRW 42,018 KRW 80
Rev-Margin DCF 6,907 KRW 13,934 KRW 23,466 KRW 74

Widest divergence: DCF Models (15,050 KRW) versus Dividend Discount (122.70 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 7.9T KRW
Revenue growth (YoY) -6.0%
Net margin -9.8%
Return on equity -19.2%
Free cash flow 352B KRW FY2025
Operating margin 13.1%
More key figures
EPS growth (YoY) +247%
Net debt 1.9T KRW FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 41 · Market factors (momentum, volatility) 49

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 67
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.

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 Co 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. growth/yr (3Y)
−8.2%
Avg. growth/yr (5Y)
−0.2%
Avg. growth/yr (25Y)
+25.3%
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 60% overvalued. Compare with Larsen & Toubro Limited →

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

Peer Group

Engineering & Construction · 837 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 −60% · 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
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

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 0 · sector 16
FUTURE 0 · sector 18
PAST 0 · sector 26
HEALTH 59 · sector 94
DIVIDEND 0 · sector 33

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

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 Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%
GS Engineering & Construction Corporation 006360 34,400 KRW 23,135 KRW -33%

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Frequently asked questions

Is Daewoo Engineering & Construction Co (047040) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 6,507 KRW versus a price of 16,410 KRW, about −60% (overvalued).
What is the fair value of 047040?
Our model-based fair value for Daewoo Engineering & Construction Co is 6,507 KRW (as of Jul 16, 2026), built from audited fundamentals. The current price is 16,410 KRW.
What is the quality score of 047040?
Daewoo Engineering & Construction Co 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 Co (047040)?
Daewoo Engineering & Construction Co reported trailing-twelve-month revenue of about 7.9T KRW (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 047040?
The net profit margin of Daewoo Engineering & Construction Co is about -9.8%, meaning it is currently running at a net loss. 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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