LG CNS IPO Valuation Analysis

• According to our valuation analysis, it suggests a base case implied market cap of 7.9 trillion won for LG CNS, representing target price of 81,095 won per share.

• Therefore, our base case valuation target price of 81,095 won is 31% higher than the high end of the IPO price range.

• We estimate LG CNS to generate sales of 5.99 trillion won (up 6.8% YoY) and net profit of 356.1 billion won (up 7.1% YoY) in 2024.