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LOTTE rental co.,ltd. (089860) Fair Value & Analysis

Industrials · KR · Market cap 1.3T KRW

LR LOTTE rental co.,ltd. 089860 · KO
Price40,400 KRW
Fair Value59,745 KRW
Upside+47.9%
Quality44/100
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Expensive Growth
Thin margins · 4.4% net margin
Moderate debt · negative free cash flow
3.27% dividend yield
Ranks above peers (7/10)
Narrow moat 42/100
Evidence: Medium Range 55,352 KRW – 74,681 KRW Share as image

Fair value as of: Jul 22, 2026

From 14 valuation models · updated 19 days ago

Share price +25.7% over the past month.

Below-average quality, screening 48% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (55,352 KRW). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

46,389 KRW 22,504 KRW Fair Value 59,745 KRW Aug 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 22,504 KRW – 46,389 KRW · fair‑value band 55,352 KRW – 74,681 KRW · the 40,400 KRW price screens below the 59,745 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.

Full chart & analysis →

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Analysis

LOTTE rental co.,ltd. (089860) currently trades at 40,400 KRW, while our model-based Fair Value estimate is 59,745 KRW, implying the stock looks roughly 47.9% undervalued today. The Quality Score stands at 44/100 (below-average 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, LOTTE rental co.,ltd. generated revenue of 3.0T KRW at a net margin of 4.4%. Revenue grew 6.6% year over year. It earns a return on equity of 8.5%. Net debt stands at 4.2T KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 55,352 KRW (bear case) to 74,681 KRW (bull case); at 40,400 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 near its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -21% fair-value upside, at 48%, 089860 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 BearBaseBull Evidence
Highest evidence
Residual Income 36,645 KRW 39,656 KRW 50,181 KRW 76
ROIC Compounder 17,064 KRW 29,858 KRW 41,231 KRW 72
Growth-Adj P/E 43,280 KRW 61,828 KRW 80,377 KRW 68
All 14 models by family
DCF Models
Owner Earnings 320,638 KRW 515,749 KRW 815,508 KRW 31
Earnings-Based
Graham-Dodd 23,898 KRW 62,678 KRW 81,809 KRW 54
PEG = 1.0 11,981 KRW 17,115 KRW 22,250 KRW 46
EPV 17,064 KRW 29,858 KRW 41,231 KRW 59
Multiples
P/E Multiple 55,352 KRW 73,803 KRW 92,253 KRW 63
P/S Multiple 44,809 KRW 59,745 KRW 74,681 KRW 58
P/B Multiple 44,809 KRW 59,745 KRW 74,681 KRW 55
EV/EBIT 54,298 KRW 90,876 KRW 127,454 KRW 53
EV/EBITDA 318,904 KRW 443,685 KRW 568,465 KRW 54
EV/Revenue 22,883 KRW 56,449 KRW 90,015 KRW 43
Asset-Based
NCAV (Graham) 21,563 KRW 28,894 KRW 43,125 KRW 50
Economic Profit
Residual Income 36,645 KRW 39,656 KRW 50,181 KRW 76
ROIC Compounder 17,064 KRW 29,858 KRW 41,231 KRW 72
Growth Earnings
Growth-Adj P/E 43,280 KRW 61,828 KRW 80,377 KRW 68

Widest divergence: DCF Models (515,749 KRW) versus Asset-Based (28,894 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 3.0T KRW
Revenue growth (YoY) +6.6%
Net margin 4.4%
Return on equity 8.5%
Free cash flow −534B KRW FY2025
Operating margin 11.4%
More key figures
Dividend yield 3.3%
EPS growth (YoY) +4.7%
Net debt 4.2T KRW FY2025

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

Quality Score breakdown

Overall quality 44/100

Of which business quality 37 · Market factors (momentum, volatility) 69

Profitability 37
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 78
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

LOTTE rental co.,ltd. provides rental services in South Korea, Thailand, and Vietnam. It rents various household items, cars, office machines, and equipment. The company was formerly known as KT Rental Co., Ltd. and changed its name to LOTTE rental co.,ltd. on June 24, 2015. LOTTE rental co.,ltd.

Full company description

LOTTE rental co.,ltd. provides rental services in South Korea, Thailand, and Vietnam. It rents various household items, cars, office machines, and equipment. The company was formerly known as KT Rental Co., Ltd. and changed its name to LOTTE rental co.,ltd. on June 24, 2015. LOTTE rental co.,ltd. was founded in 1986 and is headquartered in Anyang-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LOTTE rental co.,ltd. reported revenue of 2.9T KRW in FY2025 versus 2.4T KRW in FY2021, a compound +4.8%/yr. Reported net income was 128B KRW in FY2025, compounding +1.8%/yr from FY2021.

Growth Quality 38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.9T KRW
Latest YoY
+4.5%
Avg. growth/yr (3Y)
+2.1%
Avg. growth/yr (5Y)
+5.3%
Avg. growth/yr (7Y)
+6.6%
Revenue +4.8%/yr
FY21 2.4T KRW
FY22 2.7T KRW
FY23 2.8T KRW
FY24 2.8T KRW
FY25 2.9T KRW
Net income +1.8%/yr
FY21 119B KRW
FY22 94.4B KRW
FY23 120B KRW
FY24 107B KRW
FY25 128B KRW

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Cite: Fair Value Calculator (2026). "LOTTE rental co.,ltd. Fair Value". https://www.fairvalue-calculator.com/stock/089860

Peer Group

Rental & Leasing Services · 97 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 44 · Below median
Fair Value upside +48% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 3% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 3.3% · Above median
Debt / equity 1.45× · Higher than median

Valuation Multiples vs Rental & Leasing Services median · lower = cheaper

EV/EBITDA 1.4× · 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 97 · sector 49
FUTURE 33 · sector 16
PAST 34 · sector 26
HEALTH 27 · sector 70
DIVIDEND 65 · sector 34

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

Stock Price Fair Value vs Fair Value
United Rentals, Inc URI $1,045 $449.86 -57%
Sunbelt Rentals Holdings SUNB $73.41 $65.76 -10%
AerCap Holdings AER $146.97 $301.51 +105%
U-Haul Holding UHAL $67.35 $7.21 -89%
Ryder System, Inc R $273.06 $111.57 -59%
Ayvens AYV €11.57 €24.73 +114%
Localiza Rent a Car S.A RENT3 R$40.35 R$37.01 -8%
Element Fleet Management Corp EFN C$29.83 C$15.06 -50%
BOC Aviation Limited 2588 HK$77.40 HK$18.61 -76%
GATX Corporation GATX $178.48 $140.90 -21%

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Frequently asked questions

Is LOTTE rental co.,ltd. (089860) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 59,745 KRW versus a price of 40,400 KRW, about +48% (undervalued).
What is the fair value of 089860?
Our model-based fair value for LOTTE rental co.,ltd. is 59,745 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 40,400 KRW.
What is the quality score of 089860?
LOTTE rental co.,ltd. has a Quality Score of 44/100. 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 LOTTE rental co.,ltd. (089860)?
LOTTE rental co.,ltd. reported trailing-twelve-month revenue of about 3.0T KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 089860?
The net profit margin of LOTTE rental co.,ltd. is about 4.4%, meaning it keeps roughly 4.4% of revenue as net income. Based on the latest reported figures.
Does LOTTE rental co.,ltd. pay a dividend?
LOTTE rental co.,ltd. currently shows a dividend yield of about 3.92% relative to its recent price (as of Jul 22, 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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