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Dream Security co., Ltd (203650) Fair Value & Analysis

Technology · KR · Market cap 197B KRW

DS Dream Security co., Ltd 203650 · KQ
Price2,090 KRW
Fair Value1,472 KRW
Upside-29.6%
Quality29/100
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Expensive Growth
Thin margins · 2.2% net margin
Moderate debt · negative free cash flow
Ranks above peers (5/8)
Narrow moat 31/100
Evidence: Medium Range 1,104 KRW – 1,840 KRW Share as image

Fair value as of: Jul 20, 2026

From 17 valuation models · updated 21 days ago

Share price −8.3% over the past month.

Below-average quality, and screening another 30% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (1,840 KRW). The favourable scenario is already priced in.
  • Weak quality (29/100) 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)

4,615 KRW 1,148 KRW Fair Value 1,472 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range 1,148 KRW – 4,615 KRW · fair‑value band 1,104 KRW – 1,840 KRW · the 2,090 KRW price screens above the 1,472 KRW fair value. Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Dream Security co., Ltd (203650) currently trades at 2,090 KRW, while our model-based Fair Value estimate is 1,472 KRW, implying the stock looks roughly 29.6% overvalued today. The Quality Score stands at 29/100 (below-average quality), in the Technology 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, Dream Security co., Ltd generated revenue of 353B KRW at a net margin of 2.2%. Revenue grew 46.1% year over year. It earns a return on equity of 4.7%. Net debt stands at 307B KRW. Fundamentals as of Jul 20, 2026

Our scenario range runs from 1,104 KRW (bear case) to 1,840 KRW (bull case); at 2,090 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 57% below its 52-week high and 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at -30%, 203650 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
Residual Income 1,000 KRW 1,046 KRW 1,120 KRW 76
ROIC Compounder 2,339 KRW 3,449 KRW 4,410 KRW 72
Gordon GGM 10.49 KRW 21.81 KRW 34.61 KRW 70
All 17 models by family
DCF Models
Owner Earnings 13,327 KRW 30,617 KRW 66,913 KRW 31
Earnings-Based
Graham-Dodd 588.79 KRW 4,106 KRW 5,762 KRW 54
Lynch FV 2,066 KRW 2,952 KRW 3,837 KRW 50
PEG = 1.0 2,066 KRW 2,952 KRW 3,837 KRW 46
EPV 1,755 KRW 2,085 KRW 2,374 KRW 59
Dividend Discount
Gordon GGM 10.49 KRW 21.81 KRW 34.61 KRW 70
DDM Multi-Stage 10.49 KRW 18.39 KRW 22.90 KRW 61
Multiples
P/E Multiple 909.16 KRW 1,212 KRW 1,515 KRW 63
P/S Multiple 1,104 KRW 1,472 KRW 1,840 KRW 58
P/B Multiple 1,104 KRW 1,472 KRW 1,840 KRW 55
EV/EBIT 1,537 KRW 2,125 KRW 2,713 KRW 53
EV/EBITDA 4,766 KRW 6,430 KRW 8,094 KRW 54
EV/Revenue 1,914 KRW 2,831 KRW 3,748 KRW 43
Asset-Based
NCAV (Graham) 621.76 KRW 833.16 KRW 1,244 KRW 50
Economic Profit
Residual Income 1,000 KRW 1,046 KRW 1,120 KRW 76
ROIC Compounder 2,339 KRW 3,449 KRW 4,410 KRW 72
Growth Earnings
Growth-Adj P/E 2,430 KRW 3,472 KRW 4,514 KRW 68

Widest divergence: DCF Models (30,617 KRW) versus Dividend Discount (18.39 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 353B KRW
Revenue growth (YoY) +46.1%
Net margin 2.2%
Return on equity 4.7%
Free cash flow −24.1B KRW FY2025
Operating margin 3.5%
More key figures
EPS growth (YoY) -72.0%
Net debt 307B KRW FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 29/100

Of which business quality 27 · Market factors (momentum, volatility) 34

Profitability 30
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 1
Earnings quality: real cash, not paper profit
Fin. Strength 12
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 17
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 35
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

Dream Security co., Ltd., an authentication security company, offers authentication and security solutions. It provides authentication, integrity, confidentiality, and non-repudiation through PKI infrastructure, such as Magic RootCA, Magic CA, Magic RA, Magic OCSP, Magic SCVP, Magic TSA, and Magic LTVS; cryptographic technologies, including verified …

Full company description

Dream Security co., Ltd., an authentication security company, offers authentication and security solutions. It provides authentication, integrity, confidentiality, and non-repudiation through PKI infrastructure, such as Magic RootCA, Magic CA, Magic RA, Magic OCSP, Magic SCVP, Magic TSA, and Magic LTVS; cryptographic technologies, including verified cryptographic modules and quantum-resistant cryptography for quantum computer environments, which include Magic Crypto, Magic QCrypto, Magic TLS for PQC, and Magic QKMI; data security through encryption key management comprising key to key data encryption and decryption, Magic DBPlus, Magic KMS, and Magic CryptoBox; mobile security solutions to protect key information in the mobile environment and provide a secure smartphone environment through user authentication, such as Magic mVaccine, Magic TrustAPP, Magic vKeypad, Magic MRS, Magic xSign, Magic SE, and Magic mOTP; convenience, security, and efficiency through user authentication and access rights, such as Magic Line for Web, Magic FIDO, Secu Face, Magic DID, Magic SDP, Magic SSO, Magic EAM, Magic IAM, and Magic MFA; and an e-paperless environment by incorporating electronic document security technology into PKI, such as Magic TSA AR, Magic LineMD, Magic XMLSecurity, and Magic DVCS. The company also offers security solutions, including private authentication system, quantum cryptography, authenticity of electronic documents, and dream matter certification. In addition, it offers zero trust, a solution that creates a safe work environment through pre-authentication and post-connection; and multifactor authentication solutions. Further, the company provides services, including mobile phone verification, integrated relay for simple authentication, dream certification, smart joint authentication, and face recognition. Dream Security co., Ltd. was founded in 1998 and is based in Seoul, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Dream Security co., Ltd reported revenue of 319B KRW in FY2025 versus 190B KRW in FY2021, a compound +13.9%/yr. Reported net income was 8.3B KRW in FY2025, compounding −10.4%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
319B KRW
Latest YoY
+18.6%
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.
+12.5%
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.
+15.0%
Avg. growth/yr (9Y) 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.
+35.6%
Revenue +13.9%/yr
FY21 190B KRW
FY22 224B KRW
FY23 233B KRW
FY24 269B KRW
FY25 319B KRW
Net income −10.4%/yr
FY21 12.8B KRW
FY22 9.7B KRW
FY23 22.5B KRW
FY24 13.0B KRW
FY25 8.3B KRW

203650 screens 30% overvalued. Compare with Microsoft Corporation →

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Cite: Fair Value Calculator (2026). "Dream Security co., Ltd Fair Value". https://www.fairvalue-calculator.com/stock/203650

Peer Group

Software - Infrastructure · 370 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 29 · Bottom 25%
Fair Value upside −30% · Above median
Return on equity (TTM) 5% · Above median
Return on assets 2% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Above median
Revenue growth 46% · Top 25%
Debt / equity 0.68× · Higher 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 0
FUTURE 100 · sector 46
PAST 19 · sector 15
HEALTH 66 · sector 98
DIVIDEND 0 · sector 28

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 Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $384.00 $274.17 -29%
Oracle Corporation ORAC C$9.08 C$2.94 -68%
Fortinet, Inc FTNT $160.78 $44.96 -72%
Synopsys, Inc 1SNPS €354.50 €93.61 -74%
Block, Inc XYZ A$114.53 A$70.69 -38%
CoreWeave, Inc CRWV $79.94 $44.89 -44%
Range Intelligent Computing Technology Group 300442 ¥71.60 ¥34.00 -53%
Oracle Financial Services Software Limited OFSS ₹11,651 ₹5,821 -50%
360 Security Technology Inc 601360 ¥9.64 ¥5.05 -48%
One97 Communications Limited PAYTM ₹1,342 ₹181.50 -86%

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Frequently asked questions

Is Dream Security co., Ltd (203650) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of 1,472 KRW versus a price of 2,090 KRW, about −30% (overvalued).
What is the fair value of 203650?
Our model-based fair value for Dream Security co., Ltd is 1,472 KRW (as of Jul 20, 2026), built from audited fundamentals. The current price is 2,090 KRW.
What is the quality score of 203650?
Dream Security co., Ltd has a Quality Score of 29/100. 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 Dream Security co., Ltd (203650)?
Dream Security co., Ltd reported trailing-twelve-month revenue of about 353B KRW (latest available figure, as of Jul 20, 2026).
What is the net profit margin of 203650?
The net profit margin of Dream Security co., Ltd is about 2.2%, meaning it keeps roughly 2.2% 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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