KOSPI · 036570 · Software · ₩036570

NCNC

036570 · KOSPI · ₩036570 · NC

₩198,700▼ ₩2,800 (1.39%)End-of-day · Oct 27, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩125,059

vs the current price (₩198,700)

Enterprise value: ₩1.7T
Equity value: ₩2.7T
WACC: 8.0%

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 37% 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 ₩198,700, the model needs an operating margin of 17.7% every year (it uses 9.6%).
Or revenue growth +19.8 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩2.9T, operating profit ₩330B (11.5% margin) (2 brokers). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩3.3T, operating profit ₩292B (9.0% margin) (2 brokers). The model starts from the last 12 months reported.
Margins ranged from −6.9% to 21.7% 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.
67% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 6.9× against a typical 18.1× 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: ₩95,323; −52.0%
Base: ₩125,059; −37.1%
Bull: ₩174,988; −11.9%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (9.6%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-16.3% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin9.6%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation6.3%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending7.5%
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).
Working capital25.5%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
Beta0.71
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 0.56, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.61%
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): ₩2.1T
Net debt (borrowings and leases − cash and deposits): −₩1T
+ Stakes and investments: ₩63B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩42B
Shares: 21,544,022
Share price: ₩198,700
Market cap: ₩4.3T

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩1.8T	₩1.6T	₩1.5T	₩1.9T	₩1.8T	₩1.7T	₩1.7T	₩1.7T
Growth	−30.8%	−11.3%	−4.5%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩137B	−₩109B	₩16B	₩181B	₩169B	₩163B	₩162B	₩167B
EBIT margin	7.7%	−6.9%	1.1%	9.6%	9.6%	9.6%	9.6%	9.6%
After-tax EBIT	₩100B	−₩79B	₩12B	₩131B	₩122B	₩118B	₩118B	₩121B
+ Depreciation	₩110B	₩106B	₩91B	₩119B	₩111B	₩107B	₩107B	₩110B
− Capital spending	₩159B	₩95B	₩115B	₩141B	₩132B	₩127B	₩127B	₩131B
− Working capital	−₩406B	−₩402B	₩733B	−₩53B	−₩32B	−₩16B	−₩865M	₩13B
Free cash flow	₩456B	₩334B	−₩745B	₩162B	₩133B	₩113B	₩98B	₩87B
Discount factor	—	—	—	0.926	0.857	0.794	0.735	0.680
Present value	—	—	—	₩150B	₩114B	₩90B	₩72B	₩59B

Terminal value ₩1.7T, worth ₩1.2T today: 71% 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:

	Low	Typical	High
Price / book (book value ₩164,331 a share)Now 1.21×	₩195,2591.19×	₩254,1111.55×	₩513,1563.12×
Price / earnings (last 12 months: ₩28,673 a share)Now 6.93×	₩364,39612.7×	₩519,25318.1×	₩959,24633.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩23,141 a share)Now 8.59×	₩294,09212.7×	₩419,07218.1×	₩774,17533.5×

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%
7.0%	₩130,097	₩134,396	₩139,537	₩145,801	₩153,609
7.5%	₩124,058	₩127,541	₩131,644	₩136,550	₩142,528
8.0%	₩118,878	₩121,737	₩125,059	₩128,971	₩133,650
8.5%	₩114,386	₩116,757	₩119,482	₩122,648	₩126,377
9.0%	₩110,453	₩112,438	₩114,697	₩117,291	₩120,306

Now (TTM)

Market cap: ₩4.3T
Enterprise value: ₩3.1T
P/E: 6.9×
P/B: 1.2×
P/S: 2.0×
EV/EBITDA: 8.3×
Dividend yield: 0.6%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩201,500	₩183,100	₩240,500	₩448,000	₩643,000
Market cap	₩4.3T	₩3.9T	₩5.2T	₩9.7T	₩14T
P/E	12.5×	41.9×	24.4×	22.1×	35.0×
P/B	1.3×	1.3×	1.6×	3.0×	4.4×
P/S	2.9×	2.5×	2.9×	3.8×	6.0×
EV/EBITDA	32.9×	—	15.7×	13.2×	27.3×
Dividend yield	0.6%	0.8%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
NC	6.9×	1.2×	2.0×	8.3×	0.6%
Hyundai Autoever	46.8×	4.7×	2.0×	—	0.6%
Krafton	10.0×	1.2×	1.9×	—	1.2%
Netmarble	7.1×	0.5×	1.0×	—	2.6%
PearlAbyss	7.9×	2.0×	3.0×	5.1×	0.0%
Shift UP	9.0×	1.8×	7.1×	—	0.0%
NHN	22.9×	1.1×	0.6×	3.9×	0.0%
Similar companies (median)	9.5×	1.5×	1.9×	4.5×	0.3%

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

Also known as: NC / 036570 / KRX:036570

Source: KRX statistical information