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NAVER

035420 · KOSPI · ₩NAVER · NAVER

₩174,900▼ ₩3,100 (1.74%)End-of-day · Oct 29, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩285,249

vs the current price (₩174,900)

Enterprise value
₩40T
Equity value
₩43T
WACC
7.3%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 63% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

  • To match today's price of ₩174,900, the model needs an operating margin of 10.5% every year (it uses 17.5%).
  • Or revenue growth −11.8 points a year higher than assumed in each of the 5 years.
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
  • Today's P/E is 13.1× against a typical 19.6× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
₩192,071
+9.8%
Base
₩285,249
+63.1%
Bull
₩437,507
+150.1%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (17.5%).

Revenue growth

  • 13.6%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (13.6% a year, annual reports), fading to 3% by year 5.

  • 10.9%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (13.6% a year, annual reports), fading to 3% by year 5.

  • 8.3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (13.6% a year, annual reports), fading to 3% by year 5.

  • 5.6%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (13.6% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (13.6% a year, annual reports), fading to 3% by year 5.

Business

  • 17.5%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 6.3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 7.8%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • -10%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.4, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.51%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩13T
Net debt (borrowings and leases − cash and deposits)
−₩3.2T
Shares
152,108,892
Share price
₩174,900
Market cap
₩27T

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩9.7T₩11T₩12T₩15T₩16T₩18T₩19T₩19T
Growth17.6%11.0%12.1%13.6%10.9%8.3%5.6%3.0%
EBIT₩1.5T₩2T₩2.2T₩2.6T₩2.9T₩3.1T₩3.3T₩3.4T
EBIT margin15.4%18.4%18.3%17.5%17.5%17.5%17.5%17.5%
After-tax EBIT₩1.1T₩1.4T₩1.6T₩1.9T₩2.1T₩2.2T₩2.4T₩2.4T
+ Depreciation———₩928B₩1T₩1.1T₩1.2T₩1.2T
− Capital spending₩692B₩580B₩1.3T₩1.1T₩1.3T₩1.4T₩1.5T₩1.5T
− Working capital−₩2.5T−₩551B−₩245B−₩176B−₩161B−₩136B−₩99B−₩56B
Free cash flow———₩1.8T₩2T₩2.1T₩2.2T₩2.2T
Discount factor———0.9320.8680.8090.7540.703
Present value———₩1.7T₩1.7T₩1.7T₩1.7T₩1.6T

Terminal value ₩45T, worth ₩32T today: 79% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩194,200 a share)Now 0.90×₩211,5171.09×₩252,0631.30×₩369,3751.90×
Price / earnings (last 12 months: ₩13,303 a share)Now 13.1×₩208,75515.7×₩261,07319.6×₩534,97140.2×
P/E on run-rate earnings (Q2 2026 × 4: ₩18,372 a share)Now 9.52×₩288,28715.7×₩360,53819.6×₩738,78740.2×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
6.3%₩292,903₩317,472₩347,754₩386,001₩435,824
6.8%₩269,007₩289,039₩313,246₩343,083₩380,767
7.3%₩248,909₩265,511₩285,249₩309,102₩338,502
7.8%₩231,772₩245,722₩262,083₩281,534₩305,039
8.3%₩216,987₩228,848₩242,597₩258,720₩277,889

Now (TTM)

Market cap
₩27T
Enterprise value
₩22T
P/E
13.1×
P/B
0.9×
P/S
2.1×
EV/EBITDA
—
Dividend yield
1.5%

Over time (at each year end)

20252024202320222021
Price₩242,500₩198,900₩224,000₩177,500₩378,500
Market cap₩37T₩30T₩34T₩27T₩58T
P/E18.9×15.7×33.7×35.5×3.5×
P/B1.3×1.2×1.5×1.2×2.4×
P/S3.1×2.8×3.5×3.3×8.4×
EV/EBITDA—————
Dividend yield1.1%0.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
NAVER13.1×0.9×2.1×—1.5%
Kakao37.5×1.1×1.6×—0.3%
Daou Technology1.9×0.4×0.0×—5.4%
NICE Information Service11.6×2.1×1.6×6.8×3.0%
Kinx35.9×4.0×5.2×15.7×0.3%
Cafe2411.3×1.5×1.3×—0.0%
coocon11.0×1.3×3.5×—1.2%
Similar companies (median)11.4×1.4×1.6×6.8×0.8%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: NAVER / 035420 / KRX:035420

Source: KRX statistical information