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MDS Tech Inc (086960) Fair Value & Analysis

Technology · KR · Market cap 77.3B KRW

MT MDS Tech Inc 086960 · KQ
Price2,065 KRW
Fair Value4,432 KRW
Upside+114.6%
Quality70/100
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Mixed Growth
Loss-making · -8.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/9)
Narrow moat 41/100
Evidence: High Range 3,324 KRW – 5,540 KRW Share as image

Fair value as of: Jul 22, 2026

From 25 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from 3,173 KRW to 4,432 KRW (+39.7%) since Jul 6, 2026. Share price +3.3% over the past month.

A solid business, screening 115% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (3,324 KRW). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

9,400 KRW 1,622 KRW Fair Value 4,432 KRW Jan 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 1,622 KRW – 9,400 KRW · fair‑value band 3,324 KRW – 5,540 KRW · the 2,065 KRW price screens below the 4,432 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

MDS Tech Inc (086960) currently trades at 2,065 KRW, while our model-based Fair Value estimate is 4,432 KRW, implying the stock looks roughly 114.6% undervalued today. The Quality Score stands at 70/100 (solid 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, MDS Tech Inc generated revenue of 155B KRW at a net margin of -8.9%. Revenue grew 3.7% year over year. Fundamentals as of Jul 22, 2026

Our scenario range runs from 3,324 KRW (bear case) to 5,540 KRW (bull case); at 2,065 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 55% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 8% fair-value upside, at 115%, 086960 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 5,716 KRW 7,289 KRW 9,477 KRW 80
Residual Income 2,984 KRW 3,063 KRW 3,071 KRW 76
Rev-Margin DCF 4,210 KRW 5,090 KRW 6,079 KRW 74
All 25 models by family
DCF Models
FCF DCF 5,628 KRW 7,353 KRW 9,879 KRW 38
Owner Earnings 4,288 KRW 5,361 KRW 6,933 KRW 31
5Y Revenue Exit 4,210 KRW 5,038 KRW 6,036 KRW 39
5Y EBITDA Exit 4,705 KRW 5,936 KRW 7,309 KRW 41
5Y P/E Exit 5,228 KRW 6,884 KRW 8,556 KRW 38
10Y Revenue Exit 4,660 KRW 5,514 KRW 6,547 KRW 36
10Y EBITDA Exit 5,014 KRW 6,127 KRW 7,492 KRW 37
10Y P/E Exit 5,343 KRW 6,774 KRW 8,416 KRW 35
Earnings-Based
Graham-Dodd 1,507 KRW 3,974 KRW 5,190 KRW 54
PEG = 1.0 763.24 KRW 1,090 KRW 1,417 KRW 46
EPV 3,108 KRW 3,280 KRW 3,430 KRW 59
Dividend Discount
Gordon GGM 508.80 KRW 1,042 KRW 1,678 KRW 70
DDM Multi-Stage 508.80 KRW 785.76 KRW 1,082 KRW 61
Multiples
P/E Multiple 3,324 KRW 4,432 KRW 5,540 KRW 63
P/S Multiple 2,826 KRW 3,767 KRW 4,709 KRW 58
P/B Multiple 2,826 KRW 3,767 KRW 4,709 KRW 55
EV/EBIT 4,191 KRW 4,896 KRW 5,600 KRW 53
EV/EBITDA 4,478 KRW 5,278 KRW 6,079 KRW 54
EV/Revenue 3,502 KRW 4,113 KRW 4,724 KRW 43
Asset-Based
NCAV (Graham) 1,904 KRW 2,551 KRW 3,808 KRW 50
Growth DCF
Growth DCF 5,716 KRW 7,289 KRW 9,477 KRW 80
Rev-Margin DCF 4,210 KRW 5,090 KRW 6,079 KRW 74
Economic Profit
Residual Income 2,984 KRW 3,063 KRW 3,071 KRW 76
ROIC Compounder 3,108 KRW 3,280 KRW 3,430 KRW 72
Growth Earnings
Growth-Adj P/E 2,615 KRW 3,735 KRW 4,856 KRW 68

Widest divergence: DCF Models (5,936 KRW) versus Dividend Discount (785.76 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 155B KRW
Revenue growth (YoY) +3.7%
Net margin -8.9%
Return on equity 443%
Free cash flow 12.1B KRW FY2025
Operating margin 3.1%
More key figures
EPS growth (YoY) -52.9%

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

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 16

Profitability 40
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 39
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 100
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

MDS Tech Inc. provides embedded solutions in South Korea, Southeast Asia, India, and Oceania. It provides embedded systems development solutions and services, including debugging solutions, design automation, test automation, and in-vehicle infotainment services, as well as Windows IoT OS.

Full company description

MDS Tech Inc. provides embedded solutions in South Korea, Southeast Asia, India, and Oceania. It provides embedded systems development solutions and services, including debugging solutions, design automation, test automation, and in-vehicle infotainment services, as well as Windows IoT OS. The company's products also include NEOS RTOS, a real-time Operating System for embedded systems; and data distribution service middleware for real-time data distribution. In addition, it provides automotive infotainment solutions, such as MirrorLink, a software solution that connects smartphones and automotive infotainment systems. Further, the company offers NeoIDM, an IoT platform for managing IoT devices; and IoT Integration construction and consulting service to enable data collection and device control for heterogeneous devices, as well as operates an embedded solution training center to provide training to embedded systems engineers. It serves automotive, digital device/CE, industrial device, smartphone, SoC, defense/aerospace, medical devices, energy, and finance/public sectors. The company was formerly known as Hancom MDS Inc. and changed its name to MDS Tech Inc. in July 2022. MDS Tech Inc. was founded in 1994 and is based in Seongnam-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

MDS Tech Inc reported revenue of 188B KRW in FY2025 versus 149B KRW in FY2021, a compound +5.9%/yr. Reported net income was 8.2B KRW in FY2025.

Growth Quality 61/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
188B KRW
Latest YoY
+13.4%
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.
+6.9%
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.
+5.1%
Avg. growth/yr (18Y) 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.
+6.0%
Revenue +5.9%/yr
FY21 149B KRW
FY22 154B KRW
FY23 155B KRW
FY24 166B KRW
FY25 188B KRW
Net income
FY21 −5.0B KRW
FY22 −6.8B KRW
FY23 1.4B KRW
FY24 6.9B KRW
FY25 8.2B KRW

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Cite: Fair Value Calculator (2026). "MDS Tech Inc Fair Value". https://www.fairvalue-calculator.com/stock/086960

Peer Group

Software & IT Services · 32 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 70 · Top 25%
Fair Value upside +115% · Top 25%
Return on equity (TTM) 443% · Top 25%
Return on assets 2% · Below median
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) 3% · Below median
Revenue growth 4% · Below median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Software & IT Services median · lower = cheaper

P/FCF 0.0× · Cheaper 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 100 · sector 0
FUTURE 19 · sector 28
PAST 100 · sector 74
HEALTH 100 · sector 99
DIVIDEND 0 · sector 26

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 Software & IT Services stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

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Hancom Inc 030520 15,890 KRW 31,596 KRW +99%
Webzen Inc 069080 11,750 KRW 12,748 KRW +8%
NEOWIZ 095660 17,010 KRW 46,407 KRW +173%
Wemade Max Co 101730 3,665 KRW 825.00 KRW -77%
GalaxiaMoneytree Co 094480 4,600 KRW 3,778 KRW -18%
DAEA TI Co 045390 2,475 KRW 4,958 KRW +100%

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Frequently asked questions

Is MDS Tech Inc (086960) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 4,432 KRW versus a price of 2,065 KRW, about +115% (undervalued).
What is the fair value of 086960?
Our model-based fair value for MDS Tech Inc is 4,432 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 2,065 KRW.
What is the quality score of 086960?
MDS Tech Inc has a Quality Score of 70/100. 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 MDS Tech Inc (086960)?
MDS Tech Inc reported trailing-twelve-month revenue of about 155B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 086960?
The net profit margin of MDS Tech Inc is about -8.9%, 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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