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YG Plus

037270 · KOSPI · ₩037270 · YG PLUS

₩2,915▲ ₩30 (1.04%)End-of-day · Oct 28, 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

₩9,483

vs the current price (₩2,915)

Enterprise value
₩526B
Equity value
₩604B
WACC
7.4%

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 225% 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 ₩2,915, the model needs an operating margin of 2.3% every year (it uses 10.7%).
  • Margins ranged from −0.4% to 16.6% 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.
  • 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 9.2× against a typical 16.3× 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
₩6,181
+112.0%
Base
₩9,483
+225.3%
Bull
₩14,963
+413.3%

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 (10.7%).

Revenue growth

  • 19%

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

    Default: the last 3 years' revenue growth (19% a year, annual reports), fading to 3% by year 5.

  • 15%

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

    Default: the last 3 years' revenue growth (19% a year, annual reports), fading to 3% by year 5.

  • 11%

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

    Default: the last 3 years' revenue growth (19% a year, annual reports), fading to 3% by year 5.

  • 7%

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

    Default: the last 3 years' revenue growth (19% 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 (19% a year, annual reports), fading to 3% by year 5.

Business

  • 10.7%

    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.

  • 1.3%

    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).

  • 1.7%

    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).

  • -2.3%

    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.

  • 4.08%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-29.

  • 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 0.23, 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.

  • 5.58%

    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)
₩244B
Net debt (borrowings and leases − cash and deposits)
−₩77B
Shares
63,663,110
Share price
₩2,915
Market cap
₩186B

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₩224B₩185B₩236B₩291B₩334B₩371B₩397B₩409B
Growth59.5%−17.3%27.7%19.0%15.0%11.0%7.0%3.0%
EBIT₩21B−₩732M₩32B₩31B₩36B₩40B₩42B₩44B
EBIT margin9.5%−0.4%13.7%10.7%10.7%10.7%10.7%10.7%
After-tax EBIT₩15B−₩531M₩23B₩23B₩26B₩29B₩31B₩32B
+ Depreciation———₩3.8B₩4.3B₩4.8B₩5.2B₩5.3B
− Capital spending₩3.7B₩4.5B₩2.2B₩4.9B₩5.7B₩6.3B₩6.8B₩7B
− Working capital−₩50B−₩1.7B−₩3.3B−₩1.1B−₩1B−₩846M−₩597M−₩274M
Free cash flow———₩22B₩26B₩28B₩30B₩30B
Discount factor———0.9310.8670.8080.7520.700
Present value———₩21B₩22B₩23B₩22B₩21B

Terminal value ₩595B, worth ₩417B 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 ₩3,069 a share)Now 0.95×₩3,3391.09×₩6,6862.18×₩10,1353.30×
Price / earnings (last 12 months: ₩318 a share)Now 9.17×₩3,22010.1×₩5,19516.3×₩14,12644.4×
P/E on run-rate earnings (Q2 2026 × 4: ₩123 a share)Now 23.8×₩1,24210.1×₩2,00516.3×₩5,45144.4×

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%
6.4%₩9,758₩10,500₩11,411₩12,557₩14,042
6.9%₩9,014₩9,619₩10,348₩11,243₩12,370
7.4%₩8,386₩8,888₩9,483₩10,199₩11,080
7.9%₩7,851₩8,272₩8,765₩9,349₩10,054
8.4%₩7,388₩7,746₩8,160₩8,644₩9,219

Now (TTM)

Market cap
₩186B
Enterprise value
₩104B
P/E
9.2×
P/B
0.9×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,270₩3,615₩4,380₩4,410₩7,980
Market cap₩463B₩230B₩279B₩281B₩508B
P/E20.7×193.7×12.9×24.1×23.2×
P/B2.5×1.4×1.7×2.0×3.8×
P/S2.0×1.2×1.2×2.0×3.3×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
YG Plus9.2×0.9×0.8×—0.0%
NAVER13.4×0.9×2.1×—1.5%
Kakao38.1×1.1×1.6×—0.3%
Daou Technology1.9×0.4×0.0×—5.4%
NICE Information Service11.6×2.1×1.6×6.8×3.0%
Kinx31.7×3.6×4.6×13.9×0.4%
Cafe2411.6×1.6×1.3×—0.0%
Similar companies (median)12.5×1.3×1.6×6.8×0.9%

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

Also known as: YG Plus / YG PLUS / 037270 / KRX:037270

Source: KRX statistical information