Doosan Corp - NAV Valuation Analysis Amid Index Rebalance Expectations

• Our NAV analysis of Doosan Corp suggests an implied market cap of 3.9 trillion won or implied price per share of 235,039 won which is 17.2% lower than current price.

• Given the lack of upside relative to its NAV, we have a Negative View of Doosan Corp.

• Considering Doosan Group's repeated corporate governance concerns in the past decade, our holdco discount estimate of 50% is probably generous.

In this insight, we provide an updated NAV valuation of Doosan Corp (000150 KS), the holding company of the Doosan Group.

NAV Valuation Analysis of Doosan Corp

Our NAV analysis of Doosan Corp suggests an implied market cap of 3.9 trillion won or implied price per share of 235,039 won which is 17.2% lower than current price. Basically, it appears that Doosan Corp's share price has overshot its intrinsic value in the past few weeks. Given the lack of upside relative to its NAV, we have a Negative View of Doosan Corp.

The two biggest components of Doosan Corp's value is its 30.4% stake in Doosan Enerbility (worth 3.9 trillion won) and 68.2% stake in Doosan Robotics (worth 2.8 trillion won). For the company's core business value, we used a 6x OP (non-consolidated) of its operating profit from 1Q-3Q 2024.