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CJ ENM

035760 · KOSDAQ · ₩035760 · CJ ENM

₩42,500▲ ₩1,300 (3.16%)End-of-day · Oct 30, 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

With these assumptions the model gives no positive value.

Enterprise value
−₩822B
Equity value
−₩844B
WACC
5.8%

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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩42,500, the model needs an operating margin of 4.2% every year (it uses 2.5%).
  • Margins ranged from −0.3% to 8.4% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
—
Base
—
Bull
₩103,472
+143.5%

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 (2.5%).

Revenue growth

  • 2.3%

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

    Default: the last 3 years' revenue growth (2.3% a year, annual reports), fading to 3% by year 5.

  • 2.5%

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

    Default: the last 3 years' revenue growth (2.3% a year, annual reports), fading to 3% by year 5.

  • 2.7%

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

    Default: the last 3 years' revenue growth (2.3% a year, annual reports), fading to 3% by year 5.

  • 2.8%

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

    Default: the last 3 years' revenue growth (2.3% 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 (2.3% a year, annual reports), fading to 3% by year 5.

Business

  • 2.5%

    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.

  • 20.2%

    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).

  • 25.2%

    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).

  • -6.1%

    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 0.09, 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)
₩5.2T
Net debt (borrowings and leases − cash and deposits)
₩749B
+ Stakes and investments
₩1.4T
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩641B
Shares
21,929,154
Share price
₩42,500
Market cap
₩932B

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₩4.4T₩5.2T₩5.1T₩5.3T₩5.5T₩5.6T₩5.8T₩5.9T
Growth−8.8%19.8%−1.9%2.3%2.5%2.7%2.8%3.0%
EBIT−₩15B₩104B₩133B₩133B₩137B₩140B₩144B₩149B
EBIT margin−0.3%2.0%2.6%2.5%2.5%2.5%2.5%2.5%
After-tax EBIT−₩11B₩76B₩96B₩97B₩99B₩102B₩105B₩108B
+ Depreciation———₩1.1T₩1.1T₩1.1T₩1.2T₩1.2T
− Capital spending₩1.5T₩1.2T₩959B₩1.3T₩1.4T₩1.4T₩1.5T₩1.5T
− Working capital−₩389B₩115B−₩31B−₩7.3B−₩8.1B−₩9B−₩9.6B−₩11B
Free cash flow———−₩163B−₩166B−₩170B−₩174B−₩179B
Discount factor———0.9450.8930.8440.7970.753
Present value———−₩154B−₩148B−₩143B−₩139B−₩135B

Terminal value −₩135B, worth −₩102B today: 12% 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 ₩130,978 a share)Now 0.32×₩44,3810.34×₩65,5090.50×₩96,1550.73×

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%
4.8%—————
5.3%—————
5.8%—————
6.3%—————
6.8%—————

Now (TTM)

Market cap
₩932B
Enterprise value
₩1.7T
P/E
—
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩64,600₩53,700₩72,200₩104,700₩138,800
Market cap₩1.4T₩1.2T₩1.6T₩2.3T₩3T
P/E48.0×———15.7×
P/B0.5×0.4×0.5×0.6×0.8×
P/S0.3×0.2×0.4×0.5×0.9×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
CJ ENM—0.3×0.2×—0.0%
Seoul Broadcasting System109.3×0.2×0.2×—3.0%
KT Skylife73.5×0.3×0.2×—9.5%
Mega Study5.3×0.5×1.3×—10.1%
LG HelloVision—0.2×0.1×3.1×0.0%
The Korea Economic Broadcasting17.9×0.7×1.1×—3.3%
Korea Cable T.V Chung-Buk System—4.3×5.3×—0.0%
Similar companies (median)45.7×0.4×0.6×3.1×3.1%

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

Also known as: CJ ENM / 035760 / KRX:035760

Source: KRX statistical information