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Daejoo Electronic Materials Co (078600) Fair Value & Analysis

Basic Materials · KR · Market cap 1.3T KRW

DE Daejoo Electronic Materials Co 078600 · KQ
Price88,200 KRW
Fair Value25,198 KRW
Upside-71.4%
Quality35/100
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Expensive Growth
Thin margins · 9.8% net margin
Low debt · negative free cash flow
0.13% dividend yield
Trails peers (3/8)
Narrow moat 41/100
Evidence: Medium Range 18,645 KRW – 31,497 KRW Share as image

Fair value as of: Jul 15, 2026

From 15 valuation models · updated 25 days ago

Share price +18.9% over the past month.

Below-average quality, and screening another 71% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (31,497 KRW). The favourable scenario is already priced in.
  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

182,800 KRW 37,808 KRW Fair Value 25,198 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range 37,808 KRW – 182,800 KRW · fair‑value band 18,645 KRW – 31,497 KRW · the 88,200 KRW price screens above the 25,198 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

Full chart & analysis →

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Analysis

Daejoo Electronic Materials Co (078600) currently trades at 88,200 KRW, while our model-based Fair Value estimate is 25,198 KRW, implying the stock looks roughly 71.4% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Basic Materials 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, Daejoo Electronic Materials Co generated revenue of 187B KRW at a net margin of 9.8%. Revenue declined 23.6% year over year. Net debt stands at 246B KRW. Fundamentals as of Jul 15, 2026

Our scenario range runs from 18,645 KRW (bear case) to 31,497 KRW (bull case); at 88,200 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 52% below its 52-week high and 50% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -71%, 078600 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
Residual Income 15,463 KRW 16,732 KRW 21,300 KRW 76
ROIC Compounder 16,104 KRW 18,803 KRW 24,089 KRW 72
Growth-Adj P/E 18,645 KRW 26,636 KRW 34,627 KRW 68
All 15 models by family
DCF Models
Owner Earnings 15,587 KRW 26,241 KRW 45,399 KRW 31
Earnings-Based
Graham-Dodd 10,079 KRW 45,160 KRW 61,889 KRW 54
Lynch FV 11,756 KRW 16,794 KRW 21,832 KRW 50
PEG = 1.0 11,756 KRW 16,794 KRW 21,832 KRW 46
EPV 16,104 KRW 18,461 KRW 20,556 KRW 59
Multiples
P/E Multiple 22,233 KRW 29,644 KRW 37,056 KRW 63
P/S Multiple 18,898 KRW 25,198 KRW 31,497 KRW 58
P/B Multiple 18,898 KRW 25,198 KRW 31,497 KRW 55
EV/EBIT 22,782 KRW 29,460 KRW 36,139 KRW 53
EV/EBITDA 28,713 KRW 37,368 KRW 46,023 KRW 54
EV/Revenue 16,252 KRW 22,040 KRW 27,828 KRW 43
Asset-Based
NCAV (Graham) 9,100 KRW 12,195 KRW 18,201 KRW 50
Economic Profit
Residual Income 15,463 KRW 16,732 KRW 21,300 KRW 76
ROIC Compounder 16,104 KRW 18,803 KRW 24,089 KRW 72
Growth Earnings
Growth-Adj P/E 18,645 KRW 26,636 KRW 34,627 KRW 68

Widest divergence: Growth Earnings (26,636 KRW) versus Asset-Based (12,195 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 187B KRW
Revenue growth (YoY) -23.6%
Net margin 9.8%
Return on equity 1,929%
Free cash flow −12.8B KRW FY2025
Operating margin 8.1%
More key figures
Dividend yield 0.1%
EPS growth (YoY) -24.5%
Net debt 246B KRW FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 35 · Market factors (momentum, volatility) 33

Profitability 30
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 20
Disciplined investing over empire-building
Low Volatility 15
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 79
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

Daejoo Electronic Materials Co., Ltd. develops and sells electronic materials in South Korea, China, Taiwan, the United States, Europe, and South East Asia.

Full company description

Daejoo Electronic Materials Co., Ltd. develops and sells electronic materials in South Korea, China, Taiwan, the United States, Europe, and South East Asia. It offers high temperature type conductive pastes, including Pb-free resistor, chip component terminal electrode, chip component inner electrode, chip resistor electrode, metal glaze resistor, disc-ceramic, and RF and microwave pastes; conductive pastes for drying-type, gravure roll to roll type, medical electrode, and touch screen panel products; and conductive pastes for curing type designed for end termination electrodes of chip-resistors and chip-inductors, as well as conductive adhesives. The company also provides solar cell front Ag, rear Ag, and rear Al pastes; LED phosphor and phosphor in glass products; polymer materials, such as over glaze pastes for curing type applicable to chip-resistors, insulation materials, and materials for LED; silicon-based lithium ion battery anode materials; and metal powders, including silver powders, silver flakes, monodispersed silver powders, and precious metal powders. In addition, it offers glass materials comprising sealing glasses for low temperature type and laser sealing glasses, as well as glass materials for solar cell electrode pastes, electronic components, and LED applications; organic light emitting device materials; and graphene oxide and reduced graphene oxide products. The company was formerly known as Daejoo Fine Chemical Co., Ltd. and changed its name to Daejoo Electronic Materials Co., Ltd. in April 2003. The company was founded in 1981 and is headquartered in Siheung-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Daejoo Electronic Materials Co reported revenue of 255B KRW in FY2025 versus 199B KRW in FY2021, a compound +6.4%/yr. Reported net income was 20.7B KRW in FY2025, compounding −2.5%/yr from FY2021.

Growth Quality 55/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
255B KRW
Latest YoY
+16.1%
Avg. growth/yr (3Y)
+13.5%
Avg. growth/yr (5Y)
+10.5%
Avg. growth/yr (21Y)
+7.6%
Revenue +6.4%/yr
FY21 199B KRW
FY22 174B KRW
FY23 185B KRW
FY24 219B KRW
FY25 255B KRW
Net income −2.5%/yr
FY21 22.9B KRW
FY22 999M KRW
FY23 695M KRW
FY24 36.9B KRW
FY25 20.7B KRW

078600 screens 71% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "Daejoo Electronic Materials Co Fair Value". https://www.fairvalue-calculator.com/stock/078600

Peer Group

Chemicals · 334 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 35 · Bottom 25%
Fair Value upside −71% · Bottom 25%
Return on assets 4% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth -24% · Bottom 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.19× · Higher than median

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 0
FUTURE 0 · sector 20
PAST 0 · sector 19
HEALTH 90 · sector 94
DIVIDEND 3 · sector 27

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 Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 532.13 MXN -49%
Ningxia Baofeng Energy Group 600989 ¥20.32 ¥20.17 -1%
Zhejiang Juhua Co 600160 ¥42.85 ¥23.35 -46%
Rongsheng Petrochemical Co 002493 ¥10.95 ¥2.39 -78%
PT Barito Pacific Tbk, BRPT 1,690 IDR 1,628 IDR -4%
LG Chem, Ltd 051910 260,500 KRW 587,755 KRW +126%
Formosa Chemicals & Fibre Corporation 1326 66.10 TWD 6.79 TWD -90%
PTT Global Chemical Public Company PTTGC 35.50 THB 18.21 THB -49%
542812 542812 ₹4,369 ₹791.05 -82%
Indorama Ventures Public Company IVL 24.50 THB 17.95 THB -27%

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Frequently asked questions

Is Daejoo Electronic Materials Co (078600) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of 25,198 KRW versus a price of 88,200 KRW, about −71% (overvalued).
What is the fair value of 078600?
Our model-based fair value for Daejoo Electronic Materials Co is 25,198 KRW (as of Jul 15, 2026), built from audited fundamentals. The current price is 88,200 KRW.
What is the quality score of 078600?
Daejoo Electronic Materials Co has a Quality Score of 35/100. 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 Daejoo Electronic Materials Co (078600)?
Daejoo Electronic Materials Co reported trailing-twelve-month revenue of about 187B KRW (latest available figure, as of Jul 15, 2026).
What is the net profit margin of 078600?
The net profit margin of Daejoo Electronic Materials Co is about 9.8%, meaning it keeps roughly 9.8% of revenue as net income. Based on the latest reported figures.
Does Daejoo Electronic Materials Co pay a dividend?
Daejoo Electronic Materials Co currently shows a dividend yield of about 0.13% relative to its recent price (as of Jul 15, 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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