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YTN

040300 · KOSDAQ · ₩040300 · YTN

₩2,070▲ ₩25 (1.22%)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

₩1,088

vs the current price (₩2,070)

Enterprise value
−₩96B
Equity value
₩52B
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 47% 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 ₩2,070, the model needs an operating margin of −2.8% every year (it uses −5.7%).
  • Margins ranged from −20.3% to 3.5% 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
₩1,123
−45.8%
Base
₩1,088
−47.4%
Bull
₩1,218
−41.2%

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

Assumptions

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Cycle options

Margin path

Every year uses the cycle-average margin (−5.7%).

Revenue growth

  • -4.1%

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

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • -2.3%

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

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • 1.2%

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

    Default: the last 3 years' revenue growth (-4.1% 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 (-4.1% a year, annual reports), fading to 3% by year 5.

Business

  • -5.7%

    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.

  • 1.2%

    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).

  • 1.2%

    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).

  • 2.4%

    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 0.15, 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)
₩135B
Net debt (borrowings and leases − cash and deposits)
−₩141B
+ Stakes and investments
₩7.1B
Associates, long-term financial assets and deposits (book value)
Shares
47,676,980
Share price
₩2,070
Market cap
₩99B

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₩130B₩131B₩134B₩130B₩127B₩126B₩128B₩131B
Growth−14.3%0.5%2.3%−4.1%−2.3%−0.6%1.2%3.0%
EBIT−₩9.3B−₩27B−₩14B−₩7.4B−₩7.2B−₩7.2B−₩7.3B−₩7.5B
EBIT margin−7.1%−20.3%−10.1%−5.7%−5.7%−5.7%−5.7%−5.7%
After-tax EBIT−₩6.7B−₩19B−₩9.9B−₩5.4B−₩5.2B−₩5.2B−₩5.3B−₩5.4B
+ Depreciation——₩1.6B₩1.6B₩1.5B₩1.5B₩1.5B₩1.6B
− Capital spending₩2.2B₩1.4B₩979M₩1.6B₩1.5B₩1.5B₩1.5B₩1.6B
− Working capital−₩122B−₩15B₩3.4B−₩133M−₩72M−₩18M₩36M₩92M
Free cash flow——−₩13B−₩5.2B−₩5.2B−₩5.2B−₩5.3B−₩5.5B
Discount factor———0.9310.8670.8080.7520.700
Present value———−₩4.9B−₩4.5B−₩4.2B−₩4B−₩3.9B

Terminal value −₩107B, worth −₩75B today: 78% 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 ₩4,725 a share)Now 0.44×₩2,6430.56×₩3,4380.73×₩5,8721.24×

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%₩1,025₩845₩624₩345—
6.9%₩1,204₩1,057₩880₩662₩387
7.4%₩1,355₩1,233₩1,088₩913₩699
7.9%₩1,484₩1,381₩1,261₩1,118₩946
8.4%₩1,595₩1,508₩1,406₩1,288₩1,148

Now (TTM)

Market cap
₩99B
Enterprise value
−₩43B
P/E
—
P/B
0.4×
P/S
0.7×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩3,735₩3,070₩6,020₩5,580₩2,950
Market cap₩178B₩146B₩287B₩266B₩141B
P/E———48.2×2.8×
P/B0.8×0.7×1.2×1.0×0.6×
P/S1.3×1.1×2.2×1.7×1.0×
EV/EBITDA———44.1×27.3×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
YTN—0.4×0.7×—0.0%
HYBE—2.0×1.9×—0.3%
SM Entertainment13.7×1.7×1.4×—2.1%
JYP Entertainment12.7×2.1×1.7×7.1×2.3%
CJ CGV—1.1×0.3×—0.0%
YG Entertainment21.7×1.4×1.2×—0.8%
Studio Dragon21.8×0.9×1.2×—0.0%
Similar companies (median)17.7×1.6×1.3×7.1×0.5%

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

Also known as: YTN / 040300 / KRX:040300

Source: KRX statistical information